Apex Energy

Announcement – Coal Seam gas, Apex Energy NL & Hydraulic Fracturing

Hydraulic Fracturing and Apex Energy NL (see section - "Hydraulic Fracturing - Gasland and the Facts" at the foot of this page

Hydraulic fracturing (fraccing) is a petroleum well completion method that has recently attracted considerable attention from certain areas of the public. Even though Apex Energy NL (Apex) is still in the feasibility/exploration phase of assessing its three Petroleum Exploration Licences or PEL’s, it has been suggested by certain media outlets that Apex intends to carry out hydraulic fracturing. Indeed this suggestion by certain reporters has been blatantly inaccurate. We would like to clarify Apex’s position on hydraulic fracturing.

Fraccing is one of many methods of well completion. The various methods are often potentially more successful in certain types of strata than in others. The characteristics of the strata determine which type of well completion technique will produce commercial flow results. Apex is aware of many of the characteristics of the strata within its PEL’s. The characteristics are well understood as a result of regional mining activity. Apex has considered the various well completion techniques available including fraccing.

Our position is clear – We have no intention to complete any wells via the ‘fraccing’ completion method

Apex and its representatives have previously stated publically in meetings, conferences and technical discussions that it does not believe that fraccing will produce sustained commercial gas flow results in its current areas of influence. Apex has also made this very clear to certain media representatives who continue to report inaccurately and in a sensationalistic manner without due regard for facts or consultation.

In addition, Apex and its Joint venture partner, Ormil Energy Ltd, who are the operators of the upcoming drilling programme are currently considering other innovative ways, which do not involve fraccing, to successfully deliver gas from the Illawarra coal measures in anticipation of successful feasibility assessment.

Questions or concerns regarding our project can be emailed either directly to the project operator Ormil Operations Pty Ltd via Tom Fontaine at tom.fontaine@ormilenergy.com.au or to Apex Energy NL representitive Chris Rogers via crogers@apexenergy.com.au

Apex’s Current Strategy

Apex holds three Petroleum Exploration Licences (PEL’s). These licences are well documented in Apex’s web site (www.apexenergy.com.au) and related information is freely available to the public via sources such as TAS map (http://www.minerals.nsw.gov.au/tasmap/).

Apex’s current strategy is to work closely with its project operator, Ormil Energy on its resource evaluation programme, which includes core sampling in order to determine project feasibility. These immediate coring activities involve the sampling of the Illawarra coal measures by retrieving cylindrical sections of strata for testing and analysis. Following the taking of these samples the small diameter holes are cemented to the surface and rehabilitated under the supervision of government agencies.

Apex and Ormil Energy recognise the importance of protecting the catchment areas, managing the environment and working with the community.

Hydraulic Fracturing - Gasland and the Facts

Although Apex has stated that it does not intend to use the controversial well completion method known as hydraulic fracturing (fraccing), fraccing continues to be innapropriately  used as a "tool" against Apex and its Illawarra project. The highly subjective and politicaly driven recent film "Gasland" is being used to influence the public on fraccing. 

The Australian Petroleum Production & Exploration Association Ltd (APPEA) is the peak national body representing the interests of Australia’s upstream oil and gas exploration and production industry. APPEA has produced a fact sheet pertaining to Gasland and the information provided within the film. The APPEA comments can be viewed at;

www.apexfiles.com.au

The following link shows QLD Government information;

http://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.html

Additional information can be viewed via the following links including a New York Times article published on 24 February 2011. The article has a number of pages that can be navigated via links at the bottom of each page. The article also provides other links to USA industry sponsored articles and videos which attempt to put the record straight.

http://www.nytimes.com/gwire/2011/02/24/24greenwire-groundtruthing-academy-award-nominee-gasland-33228.html?pagewanted=1

Note there are 5 pages to the above link – the link takes you to page 1. Navigate to the other pages via the links at the bottom of page  

http://westernenergyalliance.org/resources/video-hydraulic-fracturing

http://www.energyindepth.org/2010/06/debunking-gasland/

http://www.apexfiles.com.au/

These videos are worth watching. Common myths challenged.

http://video.cnbc.com/gallery/?video=3000041363

 http://video.cnbc.com/gallery/?video=3000041364

 http://video.cnbc.com/gallery/?video=3000041249