Buru Gets DMP Approval for Western Australia Tight Gas Project
Buru Energy on Monday said Department of Mines and Petroleum (DMP) has approved company’s Laurel Formation Tight Gas Pilot Exploration Program.
DMP approval of the program now completes the regulatory approval process required for the program to proceed, the company said.
This approval comes after the Environment Minister on 16 June 2014 upheld the Environmental Protection Authority’s conclusion that Buru Energy’s “small scale, limited duration ‘proof of concept’ exploration proposal is unlikely to have a significant effect on the environment” and that the DMP was the appropriate regulatory agency to assess and monitor the program.
The DMP’s determination included approval of the Environment Plan, as well as Operational and Safety Plans for the program.
The program will commence with preliminary site preparation during this year’s Kimberley dry season and the overall program will involve stimulation of tight gas zones in existing vertical exploration wells to assess their geological and commercial potential, Buru said.
The zones to be stimulated or fracced are in the geological unit known as the Laurel Formation, between two and four kilometres below the surface.
The program is the first stage of a possible multi-stage exploration, appraisal and development program for tight gas which would be undertaken over several years, subject to demonstrating commercial viability and continued regulatory approvals.
Under a State Agreement which includes its JV partner Mitsubishi, Buru Energy is targeting the initial delivery of 1,500 petajoules of gas into the WA domestic market, enough to supply Perth residential customers for over 80 years.
“Canning Basin gas is of strategic importance to the state and has the potential to provide long term benefits to the Kimberley community. There is considerable interest on a national scale to understand the commercial potential of tight gas in the Basin and to ensure our program is undertaken with utmost consideration to the environment and community,” Buru Energy’s Managing Director Keiran Wulff said.
In preparation for the pilot program, Buru has conducted geological mapping and hydrogeological assessments and has collected robust baseline groundwater data. Buru also undertook an extensive community engagement program throughout the Kimberley.
“We will continue to engage with Traditional Owners and the general Kimberley community as we progress through our tight gas evaluation program,” Wulff said.