A PROMINENT regional environmentalist has renewed a warning the State Government’s looming release of new exploration blocks will open the floodgates to a gas mining juggernaut.
This comes as drilling at Beach Energy’s $15m Haselgrove-3 conventional well is now under way and the deadline for bids for the 2017 Otway onshore acreage release closes this Friday.
In a move to ramp up gas production in the South East, the State Government has mooted opening up sweeping new areas for exploration by petroleum companies.
According to government released information, they will be auctioned as one tenement of five exploration blocks.
Limestone Coast Protection Alliance chair Merilyn Paxton warned the region would see unprecedented slabs of South East land opened up to gas mining, which could include hydraulic fracturing.
“We have seen the first (conventional) well being drilled south of Penola – there will be a lot more wells,” Ms Paxton said.
“I urge the South East community not to become complacent – this release will cover a large part of the South East.”
Ms Paxton said the region was already witnessing a resurgence in gas mining with Beach Energy now drilling at its conventional Haselgrove-3 well site and new exploration projects flagged by other gas industry players.
She said Rawson Oil and Gas Limited had also foreshadowed its intention to drill a gas exploration prospect 10km south-east of the Katnook Gas processing facility.
The lobbyist warned the ramping up of gas drilling in the region would have no direct benefit to the regional economy, but would impact on agricultural land and the environment.
Australian Petroleum Production and Exploration Association SA director Matthew Doman said new gas exploration was needed to shore up supply for households and businesses across the state.
He said it was important to note separate environmental approvals were needed for new drilling projects in any of these new exploration blocks.
“The release of these blocks is at the very early stage in the process – it doesn’t mean drilling will start,” Mr Doman told The Border Watch.
“Each project will need specific environmental approvals and community consultation.”
He said the onshore Otway basin had historically been surveyed for conventional gas, but there could be opportunities for unconventional gas development.
“But it is too early to comment about that at this stage,” Mr Doman said.
He said national energy authorities were now warning there was a looming gas shortage in Australia, which would likely result in a 5pc shortage for consumers.
Mr Doman said this was why new sources of gas were needed across Australia.
“The South East has a role to play in that,” Mr Doman said.
The Border Watch contacted Mr Koutsantonis for comment.
