Origin Energy: Coal Seam Gas Well-Monitoring Update (Australia)

Australia Pacific LNG has advised relevant landowners, Western Downs Regional council and the Queensland government that traces of BTEX have been found in fluid samples taken from eight exploration wells in the Surat Basin, west of Miles.

Water produced from the relevant wells is contained in lined and fenced ponds and tanks for treating, as per normal operational practice. It is isolated from water courses and livestock. Australia Pacific LNG has briefed the environmental regulator (the Department of Environment and Resource Management) and the Minister for Sustainability and Climate Change, Kate Jones.

The Minister has requested, and Australia Pacific LNG has agreed, that confirmatory testing be undertaken by an independent service provider. The traces were found as part of Australia Pacific LNG’s routine testing, from samples of fluids from hydraulic fractured exploration wells.

However, Australia Pacific LNG does not use BTEX in its fracture fluids and the supplier has confirmed that the fluids do not contain BTEX. Comprehensive testing is currently underway, aimed at determining the source of the BTEX.

BTEX is found in a range of oil-based products including lubricating oil, diesel and petrol. Australia Pacific LNG is in the process of consulting with relevant landowners and the community.

The fracture stimulation of exploration wells will only continue upon a satisfactory resolution. All evidence available to Australia Pacific LNG indicates there has been no impact on surrounding landholder bores.

The company will undertake further testing in consultation with landholders in the coming days.

About Australia Pacific LNG

Australia Pacific LNG Pty Limited is a 50:50 incorporated joint venture between Origin Energy Limited and ConocoPhillips which combines Origin’s 13 and ConocoPhillips’ 25 years of CSG experience, as well as ConocoPhillips’ 40 years experience in operating and developing LNG facilities. Australia Pacific LNG is already producing almost 40 per cent of Australia’s total CSG production to meet domestic market requirements. Australia Pacific LNG holds the largest CSG reserves in Australia. Australia Pacific LNG’s project stretches from the Surat and Bowen Basins along a 450km pipeline to a site at Laird Point on Curtis Island off Gladstone. Origin is Australia’s largest integrated energy company and ConocoPhillips is a leader in the development of LNG projects internationally including the existing plant in Darwin, Australia.

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Source: Origin Energy, October 19, 2010