ACTIVITY at Beach Energy’s Haselgrove-3 conventional well north of Mount Gambier is imminent with production testing expected to get under way within days.
This follows the petroleum company announcing last month it believes it has discovered a new commercial gas field at the site, which is nestled eight kilometres south of Penola.
The initial production test will confirm well deliverability and gas composition to assist with field development planning.
Beach Energy South East regional manager Glenn Toogood confirmed this week initial production testing could get under way as early as next week.
He said this meant flaring would begin at the site over a seven day period, but reassured the community the risk of igniting a grass/plantation fire was minimal.
“Over the next fortnight we will focus on our initial production testing that will involve some flaring activities, which will be undertaken in accordance with strict fire permit guidelines,” Mr Toogood said.
He said this meant there would be no flaring on days of total fire ban.
“The area where we flare is within a cleared area, we have 24-hour spotters and fire suppression on site. We certainly don’t flare it and walk away,” Mr Toogood said.
“We monitor that flare to effectively look at what volume of gas we have below the surface – whether that is small or large volume.
“We are hopeful it is a larger volume and we can then have a level of confidence to go to the market.”
If a commercial quantity of gas was confirmed, he said the next step would be a “significant upgrade” to the Katnook Gas Plant.
“We need to connect it into the pipeline, which will just be a small 100m new connection and then undertake an upgrade to the gas plant.”
Describing the upgrade as “significant”, he said this redevelopment would take 12 to 18 months.
“The Katnook gas plant was operating between 1991 and 2013 – so it is a good part over 25 years old,” he said.
“As technology evolves, we evolve with it as an industry.”
He said this would mean a “complete upgrade” to facilitate the flow of gas through the facility so then it could be distributed to regional customers.
Limestone Coast Protection Alliance committee member Merilyn Paxton said departmental regulators were planning to visit Haselgrove-3 this month when Beach Energy began its initial production testing.
“At this stage we haven’t been provided with the final testing program and the big concern is that this so-called ‘conventional’ gas well may be assessed for fracking,” Ms Paxton said.
“At Beach Energy’s community information days last year Beach advised us that the previous two wells, Jolly 1 and Bungaloo, were drilled to be fracked, but could not be fracked because the parliamentary inquiry was being undertaken at the time.
“We were advised that they were capped and are available to be fracked.”
She said two further gas wells – Dombey 1 well and Nangwarry 1 well – were scheduled to be drilled in the South East.
