The Kahlua Pilot which was shut in on November 16 2011, remains in that condition at the discretion of Santos management due to community concerns. Santos is now confident that activities will soon be able to resume at Kahlua, with initial work concentrating on improving connectivity of the monitor well (Kahlua 2) with the target interval utilising a workover rig which should commence in Q1 2013.

 

As was the case previously, no field activities have yet been undertaken during the current year, but future pilot design, appraisal of corehole locations and preparation of draft approval documentation are progressing, and community liaison continues.

 

Final findings of Namoi Catchment Water Study, scheduled for this first quarter of 2012, have finally been released and have predicted that there will be no harmful effects from the coal seam gas industry.  Operator Santos issued a media release about this on July 31, 2012, which can be accessed from the Santos website. A resumption of work on the Glasserton single-well pilot will now be possible.

 

The renewal for PEL 12, lodged in August 2011 in accordance with prescribed procedures, still awaits approval by the Minister for Resources and Energy, but is believed to be imminent. Following release of Draft Regional Land-use plans by the NSW Government on March 6, 2012 (link) to which a range of stakeholders lodged submissions, new guidelines for seam gas exploration and development have been introduced.  Although stringent, and requiring more time consuming and expensive compliance, these are not prohibitive, and will not preclude the commercial development of Carbon's valuable seam gas resources in the region.