Arrow Update. Arrow Research. Groundwater monitoring and modelling. Demonstrations at Theten. Arrow Update. Domestic gas expansion activities

Transcription

1 Arrow appreciates the importance of groundwater for agricultural and domestic use, and the concern of potential impacts of coal seam gas development on water quality and supply. Groundwater monitoring and modelling Baseline assessment of water bores Under the Water Act, petroleum tenure holders like Arrow are required to conduct baseline assessments of all water bores within their tenure. These assessments are undertaken to obtain information about the bore, including water level and quality, bore construction, existing pumping infrastructure. In 2016 and 2017, Arrow will conduct baseline assessments of water bores within Dalby Township, as part of its requirements under the Water Act Arrow has contacted landholders with registered water bores for their assistance in the assessment program. If you did not receive a letter but would like to participate in the program, please contact Arrow on (free call) or info@arrowenergy.com.au. Groundwater monitoring program As part of Arrow s groundwater monitoring program, groundwater monitoring bores will be installed in several locations across the Surat Basin, including the Cecil Plains area. Removing groundwater from a coal seam is essential to release the gas stored in the seam. For this reason, Petroleum Lease holders, including CSG producers, are given authorisation under the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act) to take underground water as a necessary activity in the process of extracting CSG. The underground water rights afforded by the P&G Act are further regulated by the Water Act Arrow implements these obligations through groundwater monitoring and submission of and compliance with Underground Water Impact Reports (UWIR). For the Surat Cumulative Management Area (Surat CMA) the Queensland Government Office of Groundwater Impact Assessment (OGIA) is responsible for developing the UWIR which assigns responsibility for groundwater monitoring and make good to tenure holders. Arrow Research Tipton Seismic Surveys In February 2016, Arrow undertook a seismic survey in the Tipton and Cecil Plains areas. The survey took place along 117km of public roads around Cecil Plains. It was designed to map the Horrane Fault, to provide Arrow with information about how the fault intersects with the Walloon Coal Measures. From the data collected, a seismic profile was created to interpret the geology, including the structural attributes of coal seams. From the seismic profile created, Arrow has located the Horrane Fault, and determined that the fault occurs within the Walloon Coal Measures. The major faulting has occurred at depths of m; with various minor faults to the east. The major fault lies immediately east of Arrow s existing Tipton field which has been operating since The seismic data has provided clarity on the depth of the coal seams within the area, which will be used to inform project planning, including well type, positioning and spacing. Local community may see a drill rig at locations around Macalister, Warra and Cecil Plains from the end of July through to October Arrow s water bore monitoring program provides critical data on groundwater to the Queensland Government and landholders. It creates an important reference point for ongoing monitoring and enables Arrow to assess and manage potential groundwater impacts in the future. Our environmental programs aim to reduce environmental impacts, conserve and recycle resources, reduce waste and pollution, and improve processes to help protect the natural environment. Demonstrations at Theten Theten farm is a research and demonstration facility that allows Arrow to: test solutions and demonstrate outcomes on local soil types demonstrate coexistence between farming and CSG activities. Arrow Energy has been safely and sustainably developing coal seam gas (CSG) since 2000 and supplying it commercially from the Surat Basin since Today we deliver almost 20 per cent of Queensland s gas supply from our five CSG fields in the Bowen and Surat basins. Some of the demonstration projects we have, and continue to invest in, include: pest management and collaring treated water irrigation soil column testing soil erosion and rehabilitation wet weather access drill mud respreading multi-well pad and deviated drilling. In an environment of high development costs and a global economic downturn in oil prices, Arrow continues to work and plan to find the best way to bring our significant Surat Basin gas reserves to market, and meet the growing demand for gas supply. For more detailed information about the projects operated from Theten, we have a number of fact sheets and videos on our website. This update summarises Arrow s current and proposed activities in four key areas: Key statistics: Contact details Crew of 40 people; 15,264 man hours 22,158kms driven ~6.6kms seismic completed per day ~13,300 vibration points, ~13,300 receivers Freecall: info@arrowenergy.com.au Visit: Domestic gas expansion activities Arrow s confidence in the value of our Surat Basin reserves is evidenced by the recent $250 million expansion of our domestic gas facilities, one of the largest gas projects completed in the Surat Basin. Legal Disclaimer While Arrow Energy Pty Ltd has endeavoured to ensure that all information provided in this publication is accurate and up to date at the time of publication, it takes no responsibility for any error or omission relating to this information. Furthermore, the information provided shall not constitute financial product advice pursuant to the Australian Financial Services Licence held by Arrow Energy Pty Ltd s related body corporate. To the maximum extent permitted by law, Arrow Energy Pty Ltd will not be liable for any cost, loss or damage (whether caused by negligence or otherwise) suffered by you through your use of this publication. Arrow Energy Pty Ltd July Find out more online Find out more, visit AE_1137_07_16 domestic gas expansion activities (or brownfield activities) Surat Gas Project planning (or greenfield activities) groundwater monitoring and modelling continued research to minimise the impacts of our presence.

2 Daandine Expansion Project Miles Burnduith Drillham Chinchilla Brigalow Condamine 5 Kogan 2 Warrego Highway 1 Warra Macalister Jimbour Bunya Highway DALBY Hannaford Leichhardt Highway Tara Warrego Highway 3 Tipton Moonie Highway 4 Cecil Plains Moonie Gore Highway 1 Daandine Expansion Project The expansion of Arrow s Daandine gas facilities commenced in 2014 and was completed in March The upgrade has increased production capacity to the central gas processing facility (CGPF) by around 60 per cent. As part of the expansion project, three new compressors have been added to the Daandine CGPF. New sheds with upgraded walls were erected to house the compressors in order to reduce noise impact. Some 22 new gas wells were installed on three multiwell pads (up to nine wells per pad); and a low pressure flare was erected to reduce carbon emissions and improve safety. Gas produced from the Daandine field is for domestic and LNG market use, and Arrow supplies both the Braemer 2 and Daandine power stations. 2 Braemar 2 maintenance Arrow s Braemer 2 Power Station (B2) has experienced a major overhaul, with one of the facility s three turbines undergoing significant maintenance work in May this year. A de-stacking shed (standing at 20 metres tall) has been permanently erected at B2 and will be used for maintenance work on the open cycle gas turbines. The work involved a major power outage which was timed to avoid traditional periods of high power demand. B2 s remaining two turbines continued to generate power during this time. Find out more, visit

3 Braemar 2 maintenance Tipton West Arrow is planning to drill four new twinned wells later in Additionally, Arrow is planning a drilling campaign for early 2017 at three different locations adjacent to the existing Tipton West development. The program will include: 2 vertical wells at one location 2 vertical wells at a second location 1 vertical and 4 deviated wells at a third location 5 km of water and gas gathering lines. It is anticipated that drilling will occur in 2017, to enable gas production by Meenawarra Pilot Arrow has undertaken maintenance at its Meenawarra Pilot site. Three existing pilot wells (of the six-well pilot) have undergone workovers. Additional surface facilities have also been installed on site, including the installation, commissioning and operation of new well head skids. Kogan North Arrow successfully completed a drilling campaign at Kogan North which included the twinning of nine production wells. Between August and September, Arrow s construction contractor will connect the new wells to the existing gas and water gathering network. Arrow prepared an Environmental Impact Statement (EIS) for the Surat Gas Project development area, which received Queensland and Federal Government approval on 25 October and 20 December 2013 respectively. The development area assessed in the EIS extended in an arc from Wandoan in the north, through to Dalby in the east, to near Goondiwindi in the south. While the EIS is the primary approval for the project, Arrow is progressing planning for secondary approvals under both Queensland and Federal Governments, including Environmental Authority (provided through Queensland Government) and management plans required under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), a Federal Government approval.

4 Demonstrating coexistence Through its expansion projects, Arrow has used new gas production techniques to demonstrate its commitment to coexistence: Through the Daandine Expansion Project, Arrow has installed 22 new gas wells on three multi-well pads (up to nine wells per pad). Multi-well pads are a technique designed to reduce Arrow s impact on the land and minimise its footprint. At Kogan North, Arrow completed a successful drilling campaign through twinning of nine production wells. The nine new wells utilised existing wellpads, access tracks and gas gathering network. The new twinned wells target the slightly deeper Taroom Coal Measure, whereas the existing wells target the Walloon Coal Measure. At Tipton West, a similar drilling campaign will install four new twinned wells, also utilising the existing wellpads, access tracks and gas gathering network. Through targeting a deeper coal seam while utilising existing infrastructure, Arrow has demonstrated its coexistence through a significant reduction in footprint. Arrow s 12 coexistence commitments will be applied to all future development on intensively farmed land (refer ). Surat Gas Project planning In 2013, Arrow presented a development plan to the community through a series of information sessions. Since this time, the oil and gas industry has been challenged by high development costs and falling global oil prices. Arrow has continued to progress development planning, to assess options and find the best and most compelling investment case. This process includes considering opportunities for collaboration with other CSG proponents. Although project milestones and infrastructure locations are still to be determined; the overarching principles of the Surat Gas Project remain unchanged, including a strong focus on coexistence. Arrow is assessing development options within all core tenure areas of the Surat Basin, from an area north of Wandoan, to south of Cecil Plains. Upcoming survey activities To assist with project planning, and to progress secondary approvals under both Queensland and Federal Governments, Arrow is required to undertake ecological surveys to verify mapped ecological constraints within the project area of interest. The information collected from ecology surveys are required within the application for an Environmental Authority, a Queensland Government approval; and the management plans required under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), a Federal Government approval. Specifically, the surveys will be used to inform an EPBC Act Species Impact Management Plan and Offsets Management Plan. The ecology surveys will be conducted by small teams of independent specialists during September and October 2016, and again in February and March In addition, Arrow s EIS approval, received in 2013, included conditions which require Arrow to prepare Water Monitoring and Management Plans (WMMP). As part of the WMMP, Arrow must assess if there are any potential impacts to Groundwater Dependent Ecosystems (GDEs) within Arrow core Surat tenure. GDE surveys will be carried out to assess ecosystems reliant on the subsurface presence of water, and identify if they are likely to be impacted by the project. Survey activities will include a hydrogeological assessment, which may include activities such as identification of flora composition of GDE s and an ecological assessment. Groundwater surveys will be conducted by small teams of independent specialists in conjunction with the ecological surveys. Find out more, visit

5 Arrow appreciates the importance of groundwater for agricultural and domestic use, and the concern of potential impacts of coal seam gas development on water quality and supply. Groundwater monitoring and modelling Baseline assessment of water bores Under the Water Act, petroleum tenure holders like Arrow are required to conduct baseline assessments of all water bores within their tenure. These assessments are undertaken to obtain information about the bore, including water level and quality, bore construction, existing pumping infrastructure. In 2016 and 2017, Arrow will conduct baseline assessments of water bores within Dalby Township, as part of its requirements under the Water Act Arrow has contacted landholders with registered water bores for their assistance in the assessment program. If you did not receive a letter but would like to participate in the program, please contact Arrow on (free call) or info@arrowenergy.com.au. Groundwater monitoring program As part of Arrow s groundwater monitoring program, groundwater monitoring bores will be installed in several locations across the Surat Basin, including the Cecil Plains area. Removing groundwater from a coal seam is essential to release the gas stored in the seam. For this reason, Petroleum Lease holders, including CSG producers, are given authorisation under the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act) to take underground water as a necessary activity in the process of extracting CSG. The underground water rights afforded by the P&G Act are further regulated by the Water Act Arrow implements these obligations through groundwater monitoring and submission of and compliance with Underground Water Impact Reports (UWIR). For the Surat Cumulative Management Area (Surat CMA) the Queensland Government Office of Groundwater Impact Assessment (OGIA) is responsible for developing the UWIR which assigns responsibility for groundwater monitoring and make good to tenure holders. Arrow Research Tipton Seismic Surveys In February 2016, Arrow undertook a seismic survey in the Tipton and Cecil Plains areas. The survey took place along 117km of public roads around Cecil Plains. It was designed to map the Horrane Fault, to provide Arrow with information about how the fault intersects with the Walloon Coal Measures. From the data collected, a seismic profile was created to interpret the geology, including the structural attributes of coal seams. From the seismic profile created, Arrow has located the Horrane Fault, and determined that the fault occurs within the Walloon Coal Measures. The major faulting has occurred at depths of m; with various minor faults to the east. The major fault lies immediately east of Arrow s existing Tipton field which has been operating since The seismic data has provided clarity on the depth of the coal seams within the area, which will be used to inform project planning, including well type, positioning and spacing. Local community may see a drill rig at locations around Macalister, Warra and Cecil Plains from the end of July through to October Arrow s water bore monitoring program provides critical data on groundwater to the Queensland Government and landholders. It creates an important reference point for ongoing monitoring and enables Arrow to assess and manage potential groundwater impacts in the future. Our environmental programs aim to reduce environmental impacts, conserve and recycle resources, reduce waste and pollution, and improve processes to help protect the natural environment. Demonstrations at Theten Theten farm is a research and demonstration facility that allows Arrow to: test solutions and demonstrate outcomes on local soil types demonstrate coexistence between farming and CSG activities. Arrow Energy has been safely and sustainably developing coal seam gas (CSG) since 2000 and supplying it commercially from the Surat Basin since Today we deliver almost 20 per cent of Queensland s gas supply from our five CSG fields in the Bowen and Surat basins. Some of the demonstration projects we have, and continue to invest in, include: pest management and collaring treated water irrigation soil column testing soil erosion and rehabilitation wet weather access drill mud respreading multi-well pad and deviated drilling. In an environment of high development costs and a global economic downturn in oil prices, Arrow continues to work and plan to find the best way to bring our significant Surat Basin gas reserves to market, and meet the growing demand for gas supply. For more detailed information about the projects operated from Theten, we have a number of fact sheets and videos on our website. This update summarises Arrow s current and proposed activities in four key areas: Key statistics: Contact details Crew of 40 people; 15,264 man hours 22,158kms driven ~6.6kms seismic completed per day ~13,300 vibration points, ~13,300 receivers Freecall: info@arrowenergy.com.au Visit: Domestic gas expansion activities Arrow s confidence in the value of our Surat Basin reserves is evidenced by the recent $250 million expansion of our domestic gas facilities, one of the largest gas projects completed in the Surat Basin. Legal Disclaimer While Arrow Energy Pty Ltd has endeavoured to ensure that all information provided in this publication is accurate and up to date at the time of publication, it takes no responsibility for any error or omission relating to this information. Furthermore, the information provided shall not constitute financial product advice pursuant to the Australian Financial Services Licence held by Arrow Energy Pty Ltd s related body corporate. To the maximum extent permitted by law, Arrow Energy Pty Ltd will not be liable for any cost, loss or damage (whether caused by negligence or otherwise) suffered by you through your use of this publication. Arrow Energy Pty Ltd July Find out more online Find out more, visit AE_1137_07_16 domestic gas expansion activities (or brownfield activities) Surat Gas Project planning (or greenfield activities) groundwater monitoring and modelling continued research to minimise the impacts of our presence.

6 Arrow appreciates the importance of groundwater for agricultural and domestic use, and the concern of potential impacts of coal seam gas development on water quality and supply. Groundwater monitoring and modelling Baseline assessment of water bores Under the Water Act, petroleum tenure holders like Arrow are required to conduct baseline assessments of all water bores within their tenure. These assessments are undertaken to obtain information about the bore, including water level and quality, bore construction, existing pumping infrastructure. In 2016 and 2017, Arrow will conduct baseline assessments of water bores within Dalby Township, as part of its requirements under the Water Act Arrow has contacted landholders with registered water bores for their assistance in the assessment program. If you did not receive a letter but would like to participate in the program, please contact Arrow on (free call) or info@arrowenergy.com.au. Groundwater monitoring program As part of Arrow s groundwater monitoring program, groundwater monitoring bores will be installed in several locations across the Surat Basin, including the Cecil Plains area. Removing groundwater from a coal seam is essential to release the gas stored in the seam. For this reason, Petroleum Lease holders, including CSG producers, are given authorisation under the Petroleum and Gas (Production and Safety) Act 2004 (P&G Act) to take underground water as a necessary activity in the process of extracting CSG. The underground water rights afforded by the P&G Act are further regulated by the Water Act Arrow implements these obligations through groundwater monitoring and submission of and compliance with Underground Water Impact Reports (UWIR). For the Surat Cumulative Management Area (Surat CMA) the Queensland Government Office of Groundwater Impact Assessment (OGIA) is responsible for developing the UWIR which assigns responsibility for groundwater monitoring and make good to tenure holders. Arrow Research Tipton Seismic Surveys In February 2016, Arrow undertook a seismic survey in the Tipton and Cecil Plains areas. The survey took place along 117km of public roads around Cecil Plains. It was designed to map the Horrane Fault, to provide Arrow with information about how the fault intersects with the Walloon Coal Measures. From the data collected, a seismic profile was created to interpret the geology, including the structural attributes of coal seams. From the seismic profile created, Arrow has located the Horrane Fault, and determined that the fault occurs within the Walloon Coal Measures. The major faulting has occurred at depths of m; with various minor faults to the east. The major fault lies immediately east of Arrow s existing Tipton field which has been operating since The seismic data has provided clarity on the depth of the coal seams within the area, which will be used to inform project planning, including well type, positioning and spacing. Local community may see a drill rig at locations around Macalister, Warra and Cecil Plains from the end of July through to October Arrow s water bore monitoring program provides critical data on groundwater to the Queensland Government and landholders. It creates an important reference point for ongoing monitoring and enables Arrow to assess and manage potential groundwater impacts in the future. Our environmental programs aim to reduce environmental impacts, conserve and recycle resources, reduce waste and pollution, and improve processes to help protect the natural environment. Demonstrations at Theten Theten farm is a research and demonstration facility that allows Arrow to: test solutions and demonstrate outcomes on local soil types demonstrate coexistence between farming and CSG activities. Arrow Energy has been safely and sustainably developing coal seam gas (CSG) since 2000 and supplying it commercially from the Surat Basin since Today we deliver almost 20 per cent of Queensland s gas supply from our five CSG fields in the Bowen and Surat basins. Some of the demonstration projects we have, and continue to invest in, include: pest management and collaring treated water irrigation soil column testing soil erosion and rehabilitation wet weather access drill mud respreading multi-well pad and deviated drilling. In an environment of high development costs and a global economic downturn in oil prices, Arrow continues to work and plan to find the best way to bring our significant Surat Basin gas reserves to market, and meet the growing demand for gas supply. For more detailed information about the projects operated from Theten, we have a number of fact sheets and videos on our website. This update summarises Arrow s current and proposed activities in four key areas: Key statistics: Contact details Crew of 40 people; 15,264 man hours 22,158kms driven ~6.6kms seismic completed per day ~13,300 vibration points, ~13,300 receivers Freecall: info@arrowenergy.com.au Visit: Domestic gas expansion activities Arrow s confidence in the value of our Surat Basin reserves is evidenced by the recent $250 million expansion of our domestic gas facilities, one of the largest gas projects completed in the Surat Basin. Legal Disclaimer While Arrow Energy Pty Ltd has endeavoured to ensure that all information provided in this publication is accurate and up to date at the time of publication, it takes no responsibility for any error or omission relating to this information. Furthermore, the information provided shall not constitute financial product advice pursuant to the Australian Financial Services Licence held by Arrow Energy Pty Ltd s related body corporate. To the maximum extent permitted by law, Arrow Energy Pty Ltd will not be liable for any cost, loss or damage (whether caused by negligence or otherwise) suffered by you through your use of this publication. Arrow Energy Pty Ltd July Find out more online Find out more, visit AE_1137_07_16 domestic gas expansion activities (or brownfield activities) Surat Gas Project planning (or greenfield activities) groundwater monitoring and modelling continued research to minimise the impacts of our presence.