THE coal seam gas industry has arrived in suburban Newcastle with the Singapore-based Dart Energy test drilling for gas on the edge of the Tomago sandbeds.
The Tomago sandbeds supply about 20per cent of Hunter Water’s drinking water and residents living near Dart Energy’s Fullerton Cove test site are up in arms about the company’s plans.
A spokeswoman for Hunter Water said that based on ‘‘a preliminary discussion’’ with Dart Energy, its test-drilling program was outside of the formal Tomago sandbeds drinking water catchment area and did not involve hydraulic fracturing or ‘‘fracking’’.
‘‘Based on this, Hunter Water does not have concerns regarding the pilot program’s impact on the sandbeds,’’ the spokeswoman said.
‘‘Hunter Water has not been engaged regarding any large-scale production scheme.’’
While most of the focus on coal seam gas has been in Queensland and more inland areas of the Hunter Valley, government records show Dart owns a petroleum exploration licence – PEL458 – that covers more than 2000square kilometres between the Myall Lakes and Belmont, running west to Raymond Terrace and beyond Paterson.
Dart’s development manager, Denzil Cross, said last week that the Fullerton Cove explorations were in their earliest stages, with the company only looking at the quality, or ‘‘parameters’’, of the gas, and whether it was available in commercial quantities.
Mr Cross said one core hole had been finished over about six weeks last year and Dart planned to drill two pilot holes, each consisting of a vertical and horizontal hole, in the same area later this year.
The core hole was drilled to test the quantity of the gas while the pilot holes would test its commercial viability.
Mr Cross agreed, though, that Dart would not be drilling for gas if it did not believe there were viable reserves in the area.
Dart Energy listed on the stock exchange in July last year after being separated from Arrow Energy, an early Queensland coal seam gas company sold to Royal Dutch Shell and PetroChina for $3.4billion.
A recent presentation to investors said Dart had $150million to spend on an accelerated works program, with stakes in 36 coal seam methane licences in Australia, India, Indonesia, China and Europe.
Its NSW exploration program was ‘‘recommencing following expiry of the moratorium’’ on mining exploration licences that ran for two months after the election of the Coalition state government.
The Newcastle project was ‘‘Dart’s most mature licence in NSW with pilot wells planned by year end’’ and having ‘‘rapid maturation potential’’.
Meeting on exploration
FULLERTON Cove resident Sue Walker said she and her neighbours were dumbfounded that any company could obtain gas-drilling permission in Fullerton Cove.
‘‘It might be technically a few hundred metres outside the formal boundaries of Tomago sandbeds but, the last time I looked, underground water didn’t read signs as to where it was going,’’ Ms Walker said.
She said word was only just spreading about the Dart Energy project and Fullerton Cove residents would hold a public meeting at Fern Bay community centre tonight to work out how best to oppose the gas exploration.
‘‘If Dart decides the gas is commercial we could end up with wells drilled every 500metres and within 200metres of our homes,’’ Ms Walker said.
The Lock the Gate Alliance, which comprises more than 100 environmental and community groups opposed to coal seam gas, is sending a representative to the meeting.
Dart will hold its own ‘‘drop-in’’ day, at Williamtown town hall on Saturday, for anyone wanting to ask questions.
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