Drover-1 Shire of Coorow Community Reference Group AWE Limited Update 23 July 2015
2 Key milestones of a typical onshore oil and gas project Key agency: DMP, or EPA may formally assess Key agency: DMP (also DAA, DoW, DPaW, DER, EPA) Permit Granted Desktop Exploration Exploratory Drilling Field Development Conduct Survey/s Apply or farm-in Review existing data Aerial Exploration well Development drilling Infrastructure Work Program Modelling Seismic Appraisal well construction (pipeline and plant) Commissioning of Scientific (baseline) Production testing equipment Rehabilitation Proof of concept well Operation Decommission & Decommission & Rehabilitation Rehabilitation Drover-1 Year 1 Year 2 Year 3 Year 4-9 Year 10+ Indicative timeline Field development only occurs if exploration activities are successful 2
Progress report • 2012-2013 Initial consultation o Aboriginal Heritage Survey conducted o Key regulator briefings (DPaW, DMP, DoW, OEPA, EPA) o Council briefings o Landowner meetings o Community Information Session held in Leeman • 2013-2014 Proposed exploration well assessment o September - submitted EP to DMP (assessment by DoW, DPaW, OEPA, EPA) o September - Self-referred proposal to EPA (extended appeal period ) − Appeal period extended (January-April) − One appeal lodged o April - Appeals Convenor conducted further assessment then Minister dismissed appeal o April - EP approved Initial stakeholder engagement developed and implemented 3
Progress report • Exploration Well - Project milestones o 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) o 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 4
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: o Exploration drilling technical review results, and o 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 5 Although approvals in place, AWE halted activity to allow for further community engagement
Well decommissioning and rehabilitation • Key phases o Set cement plugs at prescribed depths o Cut off the casing below ground level o Seal casing then replace soil o Collet soil samples to check soil condition against baseline levels, and act if required o Rehabilitate the surface − Some infrastructure (eg access roads/water bores) may be left in place for use by landowner Rig #1 decommissioning a well Rehabilitated well site (Mountain Bridge). Wellhead location highlighted by yellow box Rehabilitation plan being developed with landowner 6
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 on level of interest in ongoing information exchange AWE seeking feedback 7
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