Galilee basin: the new CSG frontier By Amy Phillips Monday, 17 September 2012
This is what a typical CSG well looks like, the well to the right and the pump to the left. The tank and pipes in the middle seperate the water from the gas. The fencing is approximately 2 metres by 3 metres. (Amy Phillips)
A company exploring for coal seam gas in western Queensland says it still doesn't know if the region will be productive.
Grazing land across the west is the latest region to be pin pricked by drill rigs owned by companies keen to see if the Galilee basin holds any productive gas reserves.
The Galilee basin extends from as north as Richmond in north-west Queensland right down to Tambo in southern Queensland.
One of the exploration companies is AGL who supply gas to many millions of its customers across the country.
It's established a pilot project on a sheep property called Glenaras Station, north of the tiny town of Ilfracombe in central west Queensland.
Head of exploration for the company, Andrew Falkner says they've been there since 2009.
"We've established five wells in close proximity to each other in an area on the property where we know there is gas.
"As well we have built a dam to hold water that comes up with the gas and a camp to allow our staff to be on site at all times."
So far the project hasn't had too much luck.
Andrew Falkner says its pumps are getting too hot down the wells.
"One of the problems we've had in the Galilee area is that we've had really high temperatures down the holes, so about 80 degrees centigrade at about a thousand metres in depth."
"At that depth we're having trouble keeping the pumps pumping."
Despite these setbacks, Andrew Falkner is confident the area will produce gas - just don't ask him when.
"We've invested I think between $40-50 million into this project.
"We still have every confidence this area will work in terms of coal seam gas so we will keep investing money until we work out if we can or we can't produce from this area.
"I think probably in 6 to 12 months we should have a better idea of whether we can produce gas or not."
Water is a by product of gas extraction from coal seams and the Galilee basin is no different.
AGL is currently capturing water they pump up in a lined dam.
Government regulation require them to store it securely because its slightly brackish and has a salt content of 2000 microsiemens per centimetre which means is far less salty than seawater but more than water from the Great Artesian Basin.
If it's to be used the company need to treat it through reverse osmosis.
Then the water can used for anything like giving to stock for drinking or even used to irrigate forage crops like saltbush.
Both options interest Glenaras property owner, George Gowing.
"I'm not against it, if we could flood irrigate an area that would be good.
"We don't envisage any great area will be able to be developed but we are willing to look into it to benefit our grazing operation."
George Gowing has lived on the property since 1989 and has seen company's looking for oil and gas come and go in that time.
Mr Gowing says he was happy to host AGL's pilot project on his property because he's been pleased with the level of communication his family has had with the company.
He says they've also benefited from their presence.
"Although the monetary benefits of having CSG on our property are minimal we have benefited in other ways.
"Our road is absolutely fantastic, they've replaced all our gates with grids coming into the well.
"Our son is employed by AGL which also helps us out."
If the pilot project moves into production, AGL says it will pipe the gas to either their customers in southern Australia or to their project in Mt Isa where they are building a gas power station.
(20min delay)
