Reference Group AWE Limited Update 23 July 2015 2 Key milestones - - PowerPoint PPT Presentation

Drover-1 Shire of Coorow Community Reference Group

AWE Limited Update

23 July 2015

Key milestones of a typical onshore oil and gas project

Field development only occurs if exploration activities are successful

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Permit Granted Apply or farm-in Work Program Desktop Exploration Review existing data Modelling Conduct Survey/s Aerial Seismic Scientific (baseline) Rehabilitation Exploratory Drilling Exploration well Appraisal well Production testing Proof of concept well Decommission & Rehabilitation Field Development Development drilling Infrastructure construction (pipeline and plant) Commissioning of equipment Operation Decommission & Rehabilitation Year 1 Year 2 Year 3 Year 4-9 Year 10+

Indicative timeline Key agency: DMP (also DAA, DoW, DPaW, DER, EPA) Key agency: DMP, or EPA may formally assess

Drover-1

Progress report

• 2012-2013 Initial consultation
• Aboriginal Heritage Survey conducted
• Key regulator briefings (DPaW, DMP, DoW, OEPA, EPA)
• Council briefings
• Landowner meetings
• Community Information Session held in Leeman
• 2013-2014 Proposed exploration well assessment
• September - submitted EP to DMP (assessment by DoW, DPaW, OEPA, EPA)
• September - Self-referred proposal to EPA (extended appeal period)

− Appeal period extended (January-April) − One appeal lodged

• April - Appeals Convenor conducted further assessment then Minister dismissed

appeal

• April - EP approved

Initial stakeholder engagement developed and implemented

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Progress report

• Exploration Well - Project milestones
• 2014

− June/July - exploration well drilled (Phase 1) − August/December - initial exploration results analysed − September - Board offered CRG process and committed to delaying Phase 2 although approvals in place − October 2014 - CRG commenced and meetings held at key project milestones (see Terms of Reference)

• 2015

− April - DFIT undertaken − May-June DFIT results analysed − June - landowner access agreement extended, permit renewal lodged − July 2015 - Official announcement about next phase

Engagement process evolved in response to changing community feedback

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Next steps

AWE and its joint venture partner, Titan Energy, have decided to proceed directly with decommissioning and rehabilitation of the Drover-1 well instead of Phase 2.

• The decision was based on:
• Exploration drilling technical review results, and
• Diagnostic Fracture Injection Test data results, which indicated the gas in target formations could not

be commercially extracted

• DMP approved the work program variation
• Enables AWE to focus attention and exploration funding on developing the Senecio-

Waitsia conventional gas field in the northern Perth Basin, near Dongara

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Although approvals in place, AWE halted activity to allow for further community engagement

Well decommissioning and rehabilitation

• Key phases
• Set cement plugs at prescribed depths
• Cut off the casing below ground level
• Seal casing then replace soil
• Collet soil samples to check soil condition

against baseline levels, and act if required

• Rehabilitate the surface

− Some infrastructure (eg access roads/water bores) may be left in place for use by landowner Rehabilitation plan being developed with landowner

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Rig #1 decommissioning a well Rehabilitated well site (Mountain Bridge). Wellhead location highlighted by yellow box

Next steps

• Drover-1 groundwater monitoring program ongoing until July 2016
• Invitation to visit site prior to decommissioning and rehabilitation
• Feedback from Community Reference Group participants sought depending
• n level of interest in ongoing information exchange

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AWE seeking feedback