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Halladale, Black Watch and Speculant Project Halladale, Black Watch and Speculant Project Halladale, Speculant and Black Watch well site. Nirranda South, Victoria. September 2018 Project update | July 2019 Project overview The Halladale, Black Watch and Speculant Key Project timings Project is a program to develop additional The Black Watch well construction is offshore natural gas reservoirs in the expected to start in August 2019, depending Victorian Otway Basin. The gas reservoirs are on several factors including regulatory approvals, weather windows and availability located offshore, up to 3 nautical miles (5.55 of contractors. km) from the coast line, and are accessed using ‘extended reach drilling’ from the well The project will run over phases with different levels of activity, vehicle site located onshore at Nirranda South, near movements and people on site. The busiest Peterborough (see map overleaf). phase will be during drilling. Approximate timings for the different project phases are The first successful extraction of gas from this Project was estimated below: completed in August 2016, with no safety or environmental incidents on site. The Halladale 1 and Speculant 1 and 2 Prepare drill site: 1 month wells are now in the production phase with the raw gas Mobilise drill rig: 1 month flowing from the well heads, through 33km of buried pipeline, to the Otway Gas Plant for processing. Once Drill production well: 2-3 months processed, the gas is sold to retailers who use it for Demobilise rig: 1 month domestic or commercial consumption in the East Coast gas market. The Black Watch well will tie-in to the existing well Well clean-up and test: 0.5 month site infrastructure and pipeline. Install well utilities: 0.5 month GD19-0010 Map showing Halladale, Black Watch and Speculant well site. Extended reach drilling To access the offshore natural gas reservoir from an onshore well site, ‘extended reach drilling’ will be used (see diagram). This proven technology is safe, efficient and has minimal environmental impact. It involves drilling up to 2000m below the surface, while using directional drilling techniques to steer the well offshore, reaching a total drilling Enterprise-1 Concept Diagram distance of 6.5km to the potential gas reservoirs under the seabed. The Halladale, HBBlackW WatchS and Speculant Project will use conventional natural gas drilling and will not involve hydraulic fracturing Bay of Islands National Park Well site and (or ‘fracking’). The Victorian moratorium on drilling rig Sea onshore gas development does not include ~40m w ~2.5km ~ 1000mw the belo e extended reach drilling from onshore to fac ater depth sur offshore conventional gas reservoirs. o 900mace Sea up t w surf belo 2.1km t beloo 2. Diagram showing extended reach Sea L w Mean7km evel (MSL) drilling method from onshore drill site to sub-surface gas reservoir. 1500 t belo o 2000m Well site Sub-sur w surf reserv ace Drill Path f oir targace et om Sub-surf gas r t outom fr hole eser ace voir o bott ~6.5km se top hole t OT19-0010 Halladale, Black Watch and Speculant Project Update | July 2019 2 of 6 Safety and the environment Supporting the community For Beach Energy, the safety of our people and the local Beach is committed to supporting the communities environment are the highest priorities on our operations in which we operate and where our people live too. and projects. Beach operates within a highly regulated We focus on partnerships and programs that build industry and must meet stringent environmental and sustainable and resilient communities. safety standards. The Halladale, Black Watch and Speculant Project has Approvals will be required under both onshore supported several community initiatives including: and offshore petroleum legislation for this type of • Peterborough Community Hall development which involves the preparation and approval of an Operations Plan. This is an all-encompassing • Nirranda and Districts Recreational Centre document which outlines environment, resource and • Nullawarre Primary School safety management risks and mitigation. It must include an Environment Management Plan, a Well Operations • Nullawarre CFA Management Plan, and a Safety Management Plan. • Nirranda South CFA • Wayne Schwass talk on mental health at Nirranda Our Traditional Custodians Football Club Beach would like to respectfully acknowledge the Eastern Maar Peoples, the Traditional Custodians of the land In 2019 Beach is proudly supporting: on which the Project is located. Beach respects their • BlazeAid – purchase of new post hole digger and fencing historical and ongoing connection to country through materials for south west bush fire recovery cultural and spiritual sites, language and ceremony, and • Heytesbury and District LandCare Network – three year would like to pay our respect to their Elders past, present program to fund the Community Coastal Wattle Blitz and future. program in the Bay of Islands Coastal Park “Eastern Maar” is a name adopted by the people who identify as Maar, Eastern Gunditjmara, Tjap Wurrung, Peek Whurrong, Kirrae Whurrung, Kuurn Kopan Noot and/or Yarro waetch (Tooram Tribe) amongst others. Beach is consulting with Eastern Maar representatives in Contact us relation to this Project. 1800 797 011 Community consultation [email protected] Beach is committed to working with the local community, ensuring people are informed of proposed operations and can ask questions or raise issues about its projects if required. Stakeholder consultation is an important About Beach part of preparing the Environment Management Plan as Beach Energy is an ASX listed oil and gas, it helps identify local issues and concerns and ensures exploration and production company our planning manages potential impacts. Beach has headquartered in Adelaide. It has operated and been engaging with local land holders and community non-operated, onshore and offshore, oil and gas members. Beach is keen to hear from any community production from five production basins across members who would like further information or have any Australia and New Zealand and is a key supplier to questions about this Project. the Australian east coast gas market. The regulator will be provided a report on all consultations with stakeholders in the course of beachenergy.com.au developing the environment plans. Halladale, Black Watch and Speculant Project Update | July 2019 3 of 6 Questions and Answers Why are you drilling onshore to offshore? What about the Victorian Government’s Drilling from onshore to offshore has a number of Moratorium on onshore gas development? advantages over offshore drilling. Most significantly, Drilling from onshore to develop an offshore conventional onshore drilling will be less impacted by changing gas reservoir is not part of the Victorian moratorium. weather conditions and therefore has less risks and less potential environmental impacts. Will you be hydraulic fracturing (‘fracking’)? No. The previous Halladale and Speculant wells and the Are you experienced in this type of drilling? new Black Watch well target conventional natural gas Yes, Beach has over 50 years’ experience in drilling reservoirs and do not use hydraulic fracturing. Once the complex, high integrity wells including directional drilling. well reaches its target destination in the reservoir, the For the Black Watch well, Beach has engaged the same gas will freely flow from the porous Waarre sandstone drilling contractor and the same drill rig that was used for formations where it has accumulated naturally over the Halladale and Speculant wells. Beach has a team of millions of years. highly skilled gas industry professionals with extensive industry experience to deliver this Project. Why did you have to apply to the Victorian Government to drill in a National Park? What approvals are required before you can drill? Previous and new drilling activity will go under the surface A Petroleum Special Drilling Authority, which enables of the Bay of Islands National Park at depths up to 2000 drilling from outside of the offshore permit area, has been meters. By law the Park extends to the centre of the earth, granted for this Project by the Victorian Government therefore Ministerial consent is required. However, it is Minister for Resources. In addition, the Petroleum not expected to have any impact on the surface flora and Act 1998 and the Offshore Petroleum Greenhouse fauna, nor on geological stability within the park. Gas Storage Act 2006 require the development of an Operations Plan which must be approved by Earth Will drilling under the coast line damage Resources Regulation within the Department of Jobs, the cliffs? Precincts and Regions (DJPR). The Operations Plan must No. Drilling will occur at a great distance below the include: Environment Management Plan; Well Operations coast line. Initially the well will be drilled vertically, then Management Plan; Safety Management Plan. gradually decline up to 2km below surface toward the Other assessments, approvals and licences are required offshore down-hole target. The advanced technology in relation to: environment protection and biodiversity used for guiding the drill direction will ensure a great conservation; operating under the Bay of Islands National accuracy in reaching the target. Three wells have been Park; native title and cultural heritage; flora and fauna successfully completed from the same well site, without management; local planning permit; water management; any impacts. bush fire safety; and traffic management, among others. Will the drilling impact
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