canning basin well downhole operations … basin well downhole operations environment plan: summary...

Document number Revision Date of Revision

HSE-SUM-023 0 11/08/2015

Canning Basin Well Downhole Operations Environment Plan: Summary Document

Canning Basin Downhole Well Operations Environment Plan: Summary Document

HSE-SUM-023_Downhole Well Operations EP Summary Document Buru Energy Limited 1

1. INTRODUCTION Buru Energy Limited (Company) is an Australian ASX listed company engaged in oil and gas exploration in the Kimberley region of Western Australia, in an area known in geological terms as the Canning Superbasin.

The Company has developed the Canning Basin Downhole Well Operations Environment Plan (HSE-PLN-003, Revision 2) (Environment Plan) for the management of environmental aspects associated with the Company’s downhole well operations (the Activity). This Summary Document summarises the operations and mitigation and management measures in the approved Environment Plan.

1.1. Contact Details Buru Energy Limited Phone: +61 8 9215 1800 Fax: +61 8 9215 1899 Email: [email protected]

2. OVERVIEW OF THE ACTIVITY The Activities will be undertaken on existing Company wells within existing well sites across the Canning Basin. The locations of the wells are shown in Figure 1, with general characteristics of the wells provided in Table 1. The Activities will be confined to existing Activity areas: well sites, camp sites and access tracks. No clearing outside of existing Activity areas will be undertaken for the Activities.

The typical downhole well operations undertaken by the Company are: • Well intervention; • Well workover; • Testing following a well intervention or workover; and • Integrity checks.

A Bridging Document with site specific information will be submitted to the DMP Petroleum Environment Branch for approval prior to commencement of the Activities.

2.1.1. Timing

Downhole well operations are undertaken during the workover, intervention and integrity phases of the well lifecycle. Well intervention and workover, and then testing, operations are undertaken by the Company on an as needed basis. Well intervention operations typically take 1-2 days to complete, workover 1-2 weeks and testing approximately 5 days. Well integrity operations are undertaken on a six monthly basis and take 1-3 days to complete.

2.2. Well Intervention Operations Well intervention operations may include: • Installing and/or removing memory gauges; • Installing a packer or cement plug; • Well perforation; • Pressure testing of tubing; • Production logging.

The typical steps of well intervention operations undertaken by the Company include: • Mobilise the slickline unit or electric line logging unit to the well site and rig up; • Install equipment on well head or Xmas tree and pressure test; • Undertake downhole operations; and • Remove equipment, reinstall valves as required, and test well integrity.

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Figure 1: Location of Activity areas.



Table 1: Details of Company petroleum wells.

Permit Well Name Drilled Easting (m) Northing (m) Well Status Well Infrastructure Wellhead Xmas Tree Cellar Other Equipment

EP 129 Sunbeam 1 2015 645,252 8,060,106 Suspended Yes No Grating and fenced No EP 371 Asgard 1 2012 714,726 7,981,294 Suspended Yes No Grating and fenced No

Valhalla North 1 2012 683,112 8,006,107 Suspended Yes Yes Grating and fenced No Valhalla 2 2011 687,110 8,001,513 Suspended Yes Yes Grating and fenced No

EP 391 Ungani 1ST1 2011 517,375 8,010,864 Shut in Yes Yes Grating No Ungani 2 2012 517,365 8,010,848 Shut in Yes Yes Grating No Ungani 3 2014 518,470 8,011,035 Suspended Yes No Grating and fenced No Ungani North 1 2012 517,415 8,017,229 Suspended Yes No Yes No Yulleroo 2 2008 492,916 8,025,292 Suspended Yes Yes Grating and fenced No Yulleroo 3 2012 488,510 8,026,425 Suspended Yes No Grating and fenced No

EP 428 Paradise 1 2010 666,913 8,009,115 Suspended Yes No Fenced No EP 431 Pictor 1 1984 575,467 7,925,243 Suspended Yes No No No

Pictor East 1 2011 576,507 7,924,394 Suspended Yes No Grating No EP 436 Yulleroo 4 2013 487,082 8,028,804 Suspended Yes No Grating No L6 Blina 1 1981 659,322 8,050,932 Shut-in Yes No Fenced No

Blina 2 1981 658,881 8,051,453 Shut-in Yes No Fenced No Blina 3 1981 658,914 8,051,048 Shut-in Yes No Fenced No Blina 4 1981 659,180 8,051,193 Shut-in Yes No Fenced No Blina 5 1981 659,584 8,050,682 Shut-in Yes No Fenced Rod Pump Blina 6 1981 659,363 8,050,869 Shut-in Yes No Fenced No

L8 Leander 1 2010 631,512 8,062,957 Suspended Yes No Fenced No Lloyd 3 1987 633,051 8,068,190 Shut-in Yes No Fenced No Sundown 1 1982 631,944 8,059,014 Shut-in Yes No Fenced No Sundown 2 1982 632,257 8,058,768 Shut-in Yes No Fenced Rod Pump Sundown 3 1982 632,469 8,058,422 Shut-in Yes No Fenced Rod Pump Sundown 4 1982 632,139 8,058,954 Shut-in Yes No Fenced Rod Pump Sundown 5 1982 632,127 8,058,585 Shut-in Yes No Fenced No West Terrace 1 1985 633,758 8,064,032 Shut-in Yes No Fenced No West Terrace 2 1985 633,864 8,064,392 Shut-in Yes No Fenced No

L17 Boundary 1 1990 632,205 8,066,262 Shut-in Yes No Fenced Rod pump Lloyd 1 1987 632,760 8,068,439 Shut-in Yes No Fenced Rod pump



2.3. Well Workover Operations Well workover operations include: • Milling; • Remove and install gauges; • Install packer and cement plugs; • Well perforation.

The typical steps of workover operations undertaken by the Company include: • Mobilise a workover rig/hydraulic snubbing unit and supporting equipment to the well site and rig up; • Remove the Xmas tree and install a blowout preventer then test; • Remove the completion tubing string using rig or snubbing unit; • Undertake downhole operations as required; • Reinstall a completion tubing using rig or snubbing unit; • Reinstall the Xmas tree and test the well integrity.

2.4. Well Testing Operations After undertaking well intervention and workover operations, testing is typically undertaken to determine the success of the operations. Testing can be undertaken as either a positive (production) or negative (injection) test depending on the test objective. The typical steps of production testing operations undertaken by the Company to test for flow rate/reservoir pressure or presence of conventional oil and/or gas include:

• Mobilise the electric line unit/workover rig, tanks and separator to the well site and set up; • Perforate a specific interval of the well then install packer/s into the well to isolate the selected interval; • Observe well pressures and conduct initial flow back; • Shut-in the well to record build up pressures then continue flow back; • If there is no flow, undertake contingent downhole operations such as collecting downhole samples; • Remove equipment, reinstall valves as required, and test well integrity.

The typical steps of reinjection testing operations are: • Mobilise the electric line unit/workover rig and tanks to the well site and set up; • Perforate a specific interval of the well then install packer/s into the well to isolate the selected interval; • Pump fluid, often water, into the well; • Remove equipment, reinstall valves as required, and test well integrity; • Monitor pressure in the well for up to a month.

2.5. Routine Integrity Checks Well integrity operations undertaken by the Company typically include: • Annulus and void pressure testing; • Casing integrity tests and monitoring programs; • Cement evaluation or corrosion logging.

During routine well integrity tests, the following is also typically undertaken on the well surface equipment: • Record tubing and annulus pressures; • Grease and function test all Xmas Tree and wellhead valves; • Pressure test Xmas Tree body and valves.

2.6. Environmental Aspects of Care and Maintenance Operations 2.6.1. Personnel, Equipment and Supplies

The Activity will be undertaken by Company personnel and Contractors. The Activities will be undertaken using a slickline or electric line logging unit, workover rig/small drilling rig or snubbing unit. Other specialised equipment may also be needed to for the downhole operations such as pumping units or logging trucks. Other supporting equipment will typically include: • Water storage facilities such as the existing Turkeys Nest or portable tank/s.



• Portable fluid mixing tanks. • Diesel stored in portable diesel storage tanks. • Portable chemical storage facility. • Portable diesel generators and lighting towers. • Semi-trailers for mobilisation of equipment. • Light vehicles including service vehicles.

Accommodation facilities for operational personnel will often be required for the Activities. Where offsite accommodation cannot be utilised, a mobile camp will be established within the existing cleared area of the well site or camp site.

2.6.2. Waste Management

The waste types likely to be generated during the Activities are: • Putrescible waste: component of the waste stream that is likely to become putrid (food wastes). • General waste: includes other consumable materials such as containers and cardboard boxes. • Industrial waste: includes scrap metals, empty chemical containers and other mixed waste that may

also be controlled waste under the Environmental Protection (Controlled Waste) Regulations 2004. • Septic waste: sewage and grey water. • Produced liquid and gas from well testing.

Putrescible waste will be stored in lidded bins/skips which will remain closed to prevent fauna access and litter generation. General waste will be stored in bins/skips. Waste oil and lubricants or other contaminated materials will be stored in dedicated, labelled containers/skips. Putrescible, general and industrial waste will be disposed of at licensed waste disposal facility in accordance with Environmental Protection (Controlled Waste) Regulations 2004, where applicable.

If a mobile camp site is set up for the Activities, sewage will be stored for disposal offsite at a licensed waste disposal facility; or treated and discharged onsite through a sprinkler system. Grey water will be treated and disposed of onsite through a sprinkler system.

During the Activities, any fluids that are returned to surface will be stored in tanks then sampled and tested for suitable use or disposal options. All produced gas will be cold vented unless the testing program has been specifically designed to test for gas production.

2.6.3. Dangerous Goods and Hazardous Substances

The Company defines dangerous goods in line with the DMP Dangerous Goods Safety Information Sheet (2009). Typically the only dangerous goods required for Activity will be diesel fuel, oils and lubricants. Up to 20,000 L of diesel will be stored at the well site in double skinned tanks or within a temporary bund. Oil and lubricants will be stored within a temporary bund.

Hazardous substances are those substances that following long term exposure can have an adverse effect on human health or the environment. Hazardous substances will be stored within impermeable bunds such as bunded pallets and in accordance with the relevant MSDS, including segregation if applicable.

2.7. Demobilisation Demobilisation will be undertaken following the completion of each operation including removal of all machinery and ancillary equipment. The well head and Xmas tree will be secured to minimise potential for damage to this equipment, and the site left in a stable condition with all waste removed.

3. ENVIRONMENTAL IMPACTS AND MANAGEMENT MEASURES The Activity will be confined to the existing well sites, camp sites and access tracks. A summary of the existing environmental characteristics of surrounding the Activity area, potential impacts that could result from the Activity and the risk of these potential impacts occurring is provided in Table 2. Included in this Table are also the management and mitigation measures that form part of the implementation strategy to minimise environmental risk.



Table 2: Summary of the existing environment, potential impacts and management approach associated with the Activity. Environmental Characteristic Description Potential Impact Key Management Measures Risk Implementation Strategy

Surface and ground water, landforms and soil

The Activity areas are located within three surface water catchments: Fitzroy River, Cape Leveque Coast and Lennard River. The majority of the Activity areas are greater than 3 km from the closest surface water body with the exception of Paradise 1 which is approximately 800 m from Mount Wynne Creek, and Sunbeam 1 approximately 1.5 km from the closest ephemeral drainage line/area. The Activity areas are located within five surficial aquifers: Canning - Broome, Canning - Erskine, Canning - Grant, Canning - Liveringia and Canning - Wallal. The depth to groundwater in the Activity areas ranges from 7 m at Paradise 1 to 240 m in the Blina wells area. The Activities will be confined to existing well sites, camp sites and access tracks. The existing Activity areas are cleared and typically compacted and stabilised such as gravel sheeted. There will be no disturbance, including no disturbance of landforms and soil, within or outside of the existing Activity areas during typical operations.

• Contamination of surface or ground water.

• Soil erosion, sedimentation or compaction.

• Contamination of soil.

• Vehicle and personnel access will be limited to the Activity areas. • Implementation of the Refuelling Procedure (HSE-PRO-011). • Vehicles travel in accordance with the Travel Management Procedure (HSE-PRO-002). • Dangerous goods and hazardous substances will be stored in double skinned tanks or

temporary bunds, including segregation if applicable in accordance with MSDS. • Regular inspection and maintenance of machinery and equipment. • Preparation of a specific downhole well operations program for each Activity in

accordance with the Petroleum and Geothermal Energy Resources (Resource Management and Administration) Regulations 2015.

• Implementation of downhole well operations in accordance with the Company Well Control Manual.

• Well barrier management measures in place during operations. • Installation, and testing prior to commencing operations, of pressure control equipment

for downhole well operations. • All flow lines will be pressure tested prior to commencing operations. • Separated fluids will be stored in self bunded tanks or tanks located in temporary bunds

prior to testing for suitable use or disposal options. • Drips or leaks from removal or installation of equipment on the well head will be

contained in the well cellar. • Any fluids returned to surface during pressure release of the well will be flowed back

through the pump system or a flowline into an IBC. • Clean-up materials/spill kits will be available in relevant operational areas. • All spills will be immediately contained, cleaned-up and reported in accordance with the

Canning Basin Spill Response Plan (HSE-ICM-003). • The volume of bore water extracted will be a low as operationally practicable.

Given the mitigation and management measures that will be implemented, impacts on surface and ground water, landforms or soil are unlikely.

• Company Drilling Manager or delegate to develop and obtain approval of well operations program.

• Person In Charge (PIC) to ensure no personnel or vehicle access outside of the Activity area.

• PIC to ensure well maintained machinery, vehicles and equipment.

• PIC to ensure all dangerous goods, hazardous substances, brines and produced fluids are stored and handled to prevent spills including storage in bunded areas or double skinned tanks.

• PIC to complete weekly operational inspection.

• HSSE or delegate to undertake sampling of produced fluids.

• HSSE to undertake an environmental audit.

Vegetation and Flora

The vegetation associations surrounding the Activity areas are: 64, 699, 700, 703, 704, 744, 750 and 755. Seven conservation significant flora species, Priority 1 and 3, have been identified in the vicinity of the Activity areas. No rare or threatened species have been recorded.

• Loss of a local population of a conservation significant flora species.

• Loss of native flora. • Fire caused by the

operations. • Loss of conservation

significant fauna habitat

• No disturbance, including no clearing, outside of the existing Activity areas. • Vehicle and personnel access will be limited to the existing Activity areas. • Implementation of the Bilby Management Plan for Exploration Activities (HSE-PLN-021). • Implementation of the Travel Management Procedure (HSE-PRO-002). • Implementation of the Waste Monitoring and Management Procedure (HSE-PRO-005). • Periodic well integrity testing and inspection during well operations and undertaking

appropriate maintenance/rectification procedures. • Smoking restricted to existing cleared areas and disposal of cigarette butts into

bins/skips. • Mobile firefighting equipment available and maintained in good working order.

Given that no clearing is required for the Activities and through the implementation of management measures, it is unlikely that the Activity will have a significant impact on flora and vegetation.

• PIC to ensure no personnel or vehicle access outside of the Activity area.

• PIC to ensure smoking is limited to designated areas.

• PIC to ensure lighting is minimum required for safe operation.

• PIC to complete weekly operational inspection.

Environmentally Sensitive Area (ESA)

The nearest ESA to the Activity areas is Taylors Lagoon, approximately 3.5 km to the north east of Yulleroo. The Pictor well sites are located within the Edgar Range Red Book area.

• Loss of environmental values associated with ESA.

Given the distance to the closest ESA and scope of the planned Activities, it is unlikely ESAs will be impacted.

Fauna Conservation significant fauna species identified in the vicinity of the Activity areas were two mammals and eight birds.

• Loss of a local population of a conservation significant fauna species.

• Death or injury of fauna.

Given the mitigation and management measures that will be implemented, it is unlikely that the Activity will have a significant impact on fauna species.

Amenity including local land owners

The Activity areas are located within two local shire councils: Derby-West Kimberley and Broome. The Activity areas are located in the following pastoral stations: Blina, Kimberley Downs, Liveringa, Meda, Noonkanbah, Roebuck Plains and Yakka Munga. The Activity areas are very remote with the closest Aboriginal Community and/or Station Homestead at least 7 km as a direct route.

• Disturbance of livestock. • Disturbance of local

landholders. • Impact on local air quality.

• Ongoing consultation with local landholders and other stakeholders. • Implementation of the Travel Management Procedure (HSE-PRO-002). • Vehicles and personnel access to be limited to the Activity areas. • Well maintained and muffled equipment and machinery. • During demobilisation, infrastructure left in a stable and secure condition.

Through the implementation of the management measures, it is unlikely that the Activity will have an impact on local amenity including land owners.

• PIC to ensure no disturbance outside of Activity area.

• Company Social Licence Team to ensure appropriate consultation with stakeholders.

Cultural The Activity areas are located within five native title claim areas: Bunuba #2, Noonkanbah, Nyikina Mangala, Warrwa #2 and Yawuru. The Valhalla wells area located in unclaimed land.

• Damage to cultural heritage site/s or object/s.

• Relevant Traditional Owner groups informed of activities, as necessary. • Vehicle and personnel access will be limited to the Activity areas (i.e. no ground

disturbance).

Given that no clearing is required, it is unlikely that the Activity will impact cultural heritage site/s or object/s.



4. COMMUNICATION The Company has engaged in communication and consultation with relevant stakeholders as summarised in the Environment Plan. As the Activity area is located within a sparsely populated region with limited settlement, transport or communications infrastructure, relevant stakeholders are limited to government departments, traditional owners and pastoralists. Stakeholders consulted with to date include: • Relevant Traditional Owners, Native Title Holders and representative bodies. • Relevant pastoralists. • Department of Mines and Petroleum. • Department of Water. • Department of Environment Regulation. • Department of Parks and Wildlife. • Relevant local government agencies

These stakeholders have been consulted via phone, written notices and face-to-face meetings. No issues have been raised in relation to the Activity through the consultation process. The Company will continue to communicate with stakeholders and consult during all phases of the Activity, on a formal and informal basis, and by email, letter, face-to-face and telephone.

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