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Background Information Document Fo INVITATION TO PARTICIPATE: ENVIRONMENTAL MANAGEMENT PROGRAMME FOR EXPLORATION OF NATURAL GAS IN VARIOUS AREAS IN THE WESTERN CAPE May 2010 BACKGROUND INFORMATION DOCUMENT Introduction Advasol (Pty) Ltd launched applications for exploration rights in terms of Section 79 of the Mineral and Petroleum Resources Development Act (MPRDA), 2002 (Act 28 of 2002) in various magisterial districts in the Western Cape. Applications were registered under the following PetroSA reference numbers: PetroSA ref no: 12/3/1/181/1 - Struisbaai PetroSA ref no: 12/3/200/1 – De Hoop West PetroSA ref no: 12/3/197/1 – Offshore West PetroSA ref no: 12/3/198/1 – Offshore De Hoop PetroSA ref no: 12/3/196/1 – Infanta PetroSA ref no: 12/3/187/1 – Offshore East PetroSA ref no: 12/3/1/184/1 – Stilbaai PetroSA ref no: 12/3/199/1 – Mosselbaai West PetroSA ref no: 12/3/195/1 – Mosselbaai Figure 1 – Locality Map These applications for exploration of natural gas were submitted to the Petroleum Agency of South Africa. The applications were accepted, however in order to comply with Section 79(4) of the MPRDA, the Petroleum Agency of South Africa requested that an Environmental Management Programme be submitted as part of the application. The study area is indicated on Figure 1 above. Affected properties The proposed exploration activities include the following farms (not indicating subdivisions): PetroSA ref no: 12/3/1/181/1 – Struisbaai Zandfontein 185, Heuning Rugt 247; Zand Vlakte 250; De Groote Eiland 254; Afrikandersbosch 255; Nach Wacht Annex 257; Farm 258; Prince Kraal 259; Meulvley 263; Bushy Park 269; Murio 269; Bonteboks Vallei 271; Klipfontein 272; Visschers Drift 273; Onder Vlei 273; Zoetendals Vlei 280; Farm 343-CO, all in the Struisbaai District, Western Cape. PetroSA ref no: 12/3/200/1 – De Hoop West Klipfontein 64; Farm 75; Ramers Dam 77; Farm 81; Paarde Kloof 164; Apostle 165; Annex Melk Hout Kloof 166; Farm 167; Farm 168; Farm 169; Buffelsfontein 170; Elandsvalley 172; Uyshoek 173; Rietfontein 174; Rietfontein 175; Eilands Valley 176; Toornkop 177; Farm, 178; Boven Drift 179; Nagt Wagt 181; Farm 182; Farm 183; Lowland 184; Reimerskraal 323; Farm 324; Farm 325; De Hoogte 335; Southfield 336; Plaats 352; Dollas Downs 264 and Skihaven 337; all in the Bredasdorp District, Western Cape. PetroSA ref no: 12/3/197/1 – Offshore West Coastal area as indicated on the Location Map in this Basic Information Document (BID) PetroSA ref no: 12/3/197/1 – Offshore De Hoop PetroSA ref no: 12/3/196/1 – Infanta Port Beaufort 484; Duivenhoks River Mouth 505; Plaas 565; Kadies Valley 486; Klein Duine Rug 477; Kleinfontein 503; Koens Rust 502; Melk Hout River 492; Melkbosch 504; Rhenosterfontein 488; Rolhoek 485; The Rhenosterfontein Estate 490; Vondeling 479; Vondeling 482; Vondeling 481; Westfield 487; Westfield 483; The Potteberg Estates 516; Infanta and Witsand, all in the Infanta district in the Western Cape PetroSA ref no: 12/3/187/1 – Offshore East Coastal area as indicated on the Location Map in this Basic Information Document (BID) PetroSA ref no: 12/3/187/1 – Offshore De Hoop PetroSA ref no: 12/3/1/184/1 – Stilbaai Bauers Kloof 375; Annex Bauers Kloof 376; Wolve Kop 381; Wolve Kop 382; Wolvekoppe 383; Brakke Fontein 399;Rietlaagte 403; Saxegotha 404; Farm 405; Watergat 410; New Saxe Gotha 411; Victoriasdale 412; Highlands 413; Klipfontein 414; Watergat 419; Melkhout Kraal 474; Doornhoek 475; Plattebosch 485; Groot Fontein 486; Langebosch 487; Masterstok 488; Zwarte Jongens Fontein 489; Kransfontein 492; Honingbosch 493; Kleine Jongens Fontein 494;Bloemboschfontein 495-; Mosselbank Fontein 496; Drooge Duinen 497; Vermaaklikheid 499; Farm 500; Farm 509; Mosselbankfontein 510; Farm 511; Farm 515; Farm 526; Farm 541; Farm 546; Bloemboschfontein 555; Mosselbankfontein 555; Jongensgat 558;Strandloperfontein 565; Fisante Kraal 567; Farm 575; Duinekroon 581; Farm 590; Duinekroon 591; Heuningbaai 594; De Wig 599; Steenkool Fontein 600; and Portions of State Land, all in the Riversdale and Swellendam Districts, Western Cape. PetroSA ref no: 12/3/199/1 – Mosselbaai West The proposed exploration activities: The exploration of natural gas on the farms Aasvoegelberg 434;Aasvogel Berg 340; Brakke Kuil 366; Brakke Kuil 568; Brakke Kuil 572; Buffelsfontein 435; Buffelsfontein 432; Dantjes Post 471; De Groote Fontein 437; De Rust Plek 469; Driefontein 463; Driefontein 434; Driefontein 465; Driefontein 468; Driefontein Wes 474; Farm 437; Farm 361; Farm 18; Farm 41; Farm 420; Farm 421; Farm 423;Farm 424; Farm 425; Farm 426; Farm 438; Farm 518; Farm 531; Farm 532; Farm 534; Groot Yzervarkensfontein 461, Hectors Kraal 428; Hectors Kraal 476; Hectors Kraal 478; Hectors Kraal 479;Heidpforte 571; Honing Klip 431; Honing Klip Can 457; Klein Soetbatters Vlakte 369; Luins Klip 472; Melk Post 481; Melkhoutefontein 480; Melkhoutekraal 416; Middel Post 482; Modderfontein 417; Modderfontein 569; Modderfontein 570; Modderfontein 573; Modderfontein 2 579; New Buffelsfontein 433; Ratel Post 473x; Riet Valley 470; Riet Valley 484; Stebys Kop 439;Takjes 427;Takkiesfontein 429; Takkiesfontein 460; Vogelstruis Post 475; Welgelegen 436; Wilde Honde Kop 462; Zoutpan 359; Zoutpan 360; Zoutpan 362 and Zoutpan 364, all in the Riversdale District, Western Cape. PetroSA ref no: 12/3/195/1 – Mosselbaai Gouritsmond; Mietjesfontein 152; Elands Dens 206; Zuur-Rug 207; Farm 208; Melkboom 209; Matjesfontein 210; Hartebeest Kuil 213; Welbedagt 215; Farm 216; Hartenbosch 217; Farm 218; Vyf-Brakke-Fonteinen 220; Klein Zuirkop 221; Rietvalley 225; Bartelsfontein 226; Geuik 227; Patrysfontein 228; Leeuwin 229; Annex Leeuwin 230; Baakfontein 237; Baakfontein 239; De Hoek 240; Witteklip 241; Hollaagte 242; Driefontein 243; Dunzig 244; Droogfontein 245; Farm 247; Klipfontein 249; Buffels Fontein 250; Vleesch Baai 251; Vogelvalley 254; De Hoek 255; Brakkefontein 256; Misgunst Aan De Gouritz Rivier 257; Farm 258; Farm 259; Brakkefontein West 260; Zoutpan 261; Brakkefontein Oost 262; Ingang 263; Keerom 264; Vleesch 266; Rooidrif 269; Farm 284; Farm 292; Farm 294; Farm 298; Farm 301; Farm 306; Proteus 308; Farm 310; Farm 316; Farm 323; Farm 324; Farm 325; Bergsig 328; Matjesdrift 329; Farm 336; Farm 337; Farm 339; Farm 440; Snipfontein 441; Plattebos 443; Elberts Kraal 444 Rogland 445; Schoemanshoek 446; Plattebos 447; Elbertskraal Suid 448; Melkhoutefontein 449; Gansfontein 450; Gansfontein Annex 451; Riet Valley 452; Lange Fonteyn 453; Wolvefontein 454; Buffelshoek 455; Canca 456; Honing Klip Can 458; Doorndrift 459; Farm 519; Farm 533; Farm 536 and Elbertskraal 540 all in the Mossel Bay and Riversdale Districts, Western Cape. Exploration for natural gas – methods Prospecting will entail desktop compilation of data acquired from previous studies and satellite and hyperspectral images into a computer-based geological model. Thereafter geophysical magneto-telluric and induced polarisation surveys will be conducted and integrated with historical data in order to define possible traps for gas and petroleum. A borehole (some 1000-1500 metres deep) is proposed which will be combined with the down-the hole geophysical logging and gas analysis. Should results prove positive, then further holes will be planned for drilling during a renewal period of the Exploration Right to assess the potential of the gas reservoir a accompanied by resource and reservoir modelling and preliminary financial and feasibility assessments. This will culminated in the planning of production boreholes. Timeframes are indicated in Table 1 below: Table 1-Time frames for project components No Exploration Stage Time Frame 1. Data Compilation and Desktop studies 2008-2009 Data compilation will be done with a GIS system accompanied by various database spreadsheets. 2. Satellite Image Processing and Interpretation 2009 Satellite and hyperspectral images will be acquired over the project area to assist with targeting of priority area particularly during the data compilation stage in the first year. 3. Magneto-telluric (MT) and Induced Polarisation (IP) surveys 2010 Magneto-tellurics is an electromagnetic survey techno logy that uses broadband natural energy sources sucha s lightning, solar activity and ionospheric resonances to induce current flow in the ground. Data are measured as electrical resistivities and correlate with lithology, structure, porosity and potential hydrocarbon occurrences. It is particularly useful when augmented with seismic data which shows stratigraphy but resistivity. Induced Polarisation can also be used to define resistivity contracts between gas-filled reservoir rocks and the surrounding strata. This survey will be conducted during the second year. Other methods Electronic data capture of all information into a GIS (ArcMap™) system and three dimensional reservoir modelling in Petra™. Various other proprietary software programmes which are routinely used in the petroleum exploration industry will be used to define the conditions of the reservoir rocks and the porosity and potential 3 gas content and yields of these reservoirs 4. Drilling End of 2010, Drilling will be done with rotary core drill rigs capable of penetrating to depths of after successful up to 2000 metres and these machines are routinely used in the petroleum completion of non- exploration environment. Drilling is expected to take from 4-6 months to complete invasive process the borehole. Solid core can be recovered and potential gas/petroleum bearing rocks can be contained in suitable canisters for a variety of tests to assist with defining reservoir conditions
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