DRILLING AT WARRO GOING AHEAD

Transerv Energy (ASX Code: TSV) as operator of the Warro Joint Venture (WJV) is pleased to announce that it has received approval to proceed with the next phase of drilling at the Warro gas field.
This phase will comprise the drilling of Warro-5 and Warro-6, including extended well testing.
This programme is being funded by Alcoa of Australia Limited (Alcoa)as part of an existing farm-in arrangement whereby Alcoa can earn up to a 65% interest in the gas field through expenditure of up to $100 million
The timing for drilling is dependent on the availability of drilling equipment and various Government approvals As previously announced, the WJV is well advanced in its planning activities and has already lodged the Environmental Plan for the operations.
In addition, work on identifying drilling long lead items and a rig procurement process is well advanced
Transerv expects to commence drilling operations during the first half of 2015, subject to timely approvals.

Warro Project Background

The Warro gas field lies 200km north of Perth in the Perth Basin and is one of the largest undeveloped onshore gas fields in Australia.
The Warro reservoir section is about 3,750m below surface and has a thickness of
approximately 500m.
The gas is held within low porosity and low permeability sandstones.
The field is located 31km east of both the Dampier-to-Bunbury Natural Gas Pipeline and the Dongara-to-Perth Parmelia Pipeline.

The Warro gas field is located in EP321 and 407 and covers an area of approximately
7,000ha. EP321 and EP407 are in the process of being renewed and/or partially converted to Retention Leases over the Warro gas field area. The interest holders in the WJV are Transerv Energy (57%) and Alcoa (43%).
Under the farm-in agreement, Alcoa can earn up to a 65% interest in the WJV assets spending up to $100 million on a staged programme comprising exploration and development activities. To date, the WJV have drilled two wells (Warro-3 and 4) and acquired 3D seismic.

During 2012-13 the Warro gas field was the subject of an exhaustive review by US-based, tight gas experts led by Dr Keith Shanley, who is recognised globally for his work in this industry. The Shanley review concluded:

• Warro gas field is a large gas accumulation with resource estimates of:
             o   8 - 10 TCF Gas In Place
             o   3 - 4 TCF recoverable gas
• Development wells should be capable of flowing at high rates and recovering 4 -10 BCF each (50    acre spacing).
• More wells and extended flow testing programmes are required to fully evaluate the full commercial potential of the gas field.

Chairman’s comment
“Alcoa’s decision to proceed with the Warro project is excellent news and we are pleased to see this vote of confidence in the project.
The decision comes after a lot of painstaking work by the Warro Joint Venture, work that has not only reviewed the previous well results but also identified the optimum locations to drill the next appraisal wells.
We look forward to the next phase of drilling and testing, which aims to prove the commercial viability of a 3 Tcf gas field on Perth’s doorstep."

For more info on Dandaragan Redgum Village click this link




.

TEMPORARY CLOSURE OF ROAD FOR MINING PURPOSES

ILUKA RESOURCES – PROPOSED TEMPORARY CLOSURE OF PORTION OF CARO ROAD FOR MINING PURPOSES

Location: Caro Road, Cataby

Applicant: Iluka Resources

Folder Path: Business Classification Scheme / Roads / Road Closures / Temporary

Date: 9 September 2014

PROPOSAL

An application has been received for the temporary (approx. 10 years) closure of portion of Caro Road, Cataby and for consent from Council to mine through the road.

BACKGROUND

The applicant states:

I write to apply for the temporary closure of Caro Road at Cataby in accordance with the Local Government Act 1995.
As part of this application I also request for written consent from the Shire of Dandaragan (Shire) to mine through the road as the vesting authority for the road.
A copy of this consent, once received, will be included in documents to be submitted to the Department of Mining and Petroleum (DMP), in accordance with the Mining Act 1978.

By way of detail and need for the road closure I offer the following:

Description of the disruption —
The proposed mining of the Cataby deposit will require mining of Pit 13 and associated access corridors and infrastructure, including HV reticulation.

It is proposed to temporarily close Caro Road from the Brand Highway intersection.
The owner of the adjacent roadhouse has been consulted on this matter. It is noted that Caro Road is a no through road which exclusively enables access to two properties on Lots 754 and Lots 1555. Lot 1555 is owned by lluka and Lot 754 is owned by D. Chaffey; who will provide his own alternate access road via other lluka property during the Caro Road closure.

Timing - It is proposed that Caro Road be closed from commencement of construction to cessation of mining, which is currently predicted to be from April 2015 up to a period of no greater than 10 years. This timing is subject to lluka Board Approval and meeting closure criteria following mining completion.

Need — The mineral contained in Pit 13 and mining enabled by the installation of associated access corridors and infrastructure is critical to the financial viability of the Cataby Mineral Sands Project 48 directly and through operability aspects of the site, including public safety.

lluka commits to the restoration of the road and re-instatement of all services (power, communications etc) back to pre-disturbance condition, following completion of mining.
This commitment will also be included in the Cataby Mine Closure and Rehabilitation Plan which must be approved by the DMP prior to ground disturbance.

For more info on Dandaragan Redgum Village click this link

COMMENT

The application is for a temporary closure of the road rather than a permanent closure as there will be a need for existing properties along Caro Road and connecting roads to maintain legal access for any future development.

There are two dwellings that have access from Brand Highway via Caro Road. One of these properties is owned by Iluka, the other property that is privately owned has negotiated alternate access with Iluka.
There is also an unconstructed short no through road that has connection to Caro Road (Balgar Road).

At this stage, Council is required to seek public comment on the proposal before deciding whether to order that the road be temporarily closed.

CONSULTATION

To be undertaken if Council agrees.

STATUTORY ENVIRONMENT

Local Government Act 1995
Subdivision 5 — Certain provisions about thoroughfares

3.50. Closing certain thoroughfares to vehicles

(1a) A local government may, by local public notice, order that a thoroughfare that it manages is    wholly or partially closed to the passage of vehicles for a period exceeding 4 weeks.

(2) The order may limit the closure to vehicles of any class, to particular times, or to such other case or class of case as may be specified in the order and may contain exceptions.

(3) Deleted

(4) Before it makes an order wholly or partially closing a thoroughfare to the passage of vehicles for a period exceeding 4 weeks or continuing the closure of a thoroughfare, the local government is to —
(a) give local public notice of the proposed order giving details of the proposal, including the location of the thoroughfare and where, when, and why it would be closed, and inviting submissions from any person who wishes to make a submission; and
     (b) give written notice to each person who —
          (i) is prescribed for the purposes of this section; or
          (ii) owns land that is prescribed for the purposes of this section; and
      (c) allow a reasonable time for submissions to be made and consider any submissions made.

(5) The local government is to send to the Commissioner of Main Roads appointed under the Main Roads Act 1930 a copy of the contents of the notice required by subsection (4)(a).

(6) An order under this section has effect according to its terms, but may be revoked by the local government, or by the Minister, by order of which local public notice is given.

POLICY IMPLICATIONS

There are no policy implications relevant to this item.

FINANCIAL IMPLICATIONS

There are no financial implications relevant to this item.

STRATEGIC IMPLICATIONS

There are no strategic implications relevant to this item.

ATTACHMENTS

Circulated with the agenda is the following item relevant to this report:

·         Mapping from Iluka Resources (Doc Id: 39568 & 39569)

·         Letter from applicant (Doc Id: 39567)

(Marked 9.4.3)

VOTING REQUIREMENT

Simple majority

OFFICER RECOMMENDATION

That Council agrees to commence the public notice process in accordance with the Local Government Act 1995 to temporarily close portion of Caro Road, Cataby for the purposes of mining commencing from April 2015 for a period of 10 years or cessation of mining activities. 

.