Narrabri Gas Project: the responsible development of NSWs natural gas resources James Baulderstone, Vice President Eastern Australia Glenn Toogood, Water Management Leader 17 July 2014
Natural gas Moving to a cleaner energy economy James Baulderstone, Vice President Eastern Australia To be updated
Strategy Our vision is to be a leading energy company in Australia and Asia Growing our strong domestic base business Bay of Bengal Phu Khanh Nam Con Son West Natuna Delivering our South Sumatra Papuan transformational…
Moving to a cleaner Natural gas is ideally placed to underpin the transition energy economy to a low carbon economy Decarbonising the energy US shale gas production vs sector: carbon emissions 1.3 billion people in the world are…
Eastern Australia natural More than 87% of eastern Australias natural gas gas reserves reserves1 are held in coal seams Australia possesses abundant gas Australias natural gas reserves1 resources to meet both domestic and export…
Eastern Australia gas Additional supply is required to meet increased market transformation demand Eastern Australia gas demand (PJ) 2,500 2,000 APLNG 1,500 x3 GLNG QCLNG 1,000 Power Gen 500 Retail, C&I 0 2013 2015…
NSW gas supply tight NSW natural gas critical to eastern Australias energy from 2015 security NSW & ACT Demand and PJ Contracted Supply Eastern Australia gas demand set to triple as 200 three major LNG plants open to global markets…
The stakes are high Restricting coal seam gas development will adversely impact energy supply, affecting everyday Australians Over 5 million homes and businesses use natural gas To be updated 45% of manufacturing relies on natural…
Narrabri Gas Project James Baulderstone, Vice President Eastern Australia
Narrabri Gas Project Santos is committed to safe and responsible operations, respectful engagement and supporting regional communities Delivering Supply energy Benefiting natural gas safely with regional to NSW minimal…
Narrabri Gas Project The Narrabri Gas Project area is located within the Petroleum Exploration Lease (PEL) 238 Santos CSG acreage, NSW Narrabri Gas Project area, NSW 12 NARRABRI GAS PROJECT - JULY 2014
Benefiting regional We aim to become a valued and respected member of communities the local communities which host our activities 1,200 jobs during construction Flow on benefits via supply chain revenues, local purchasing and…
A tale of two towns The natural gas industry is revitalising regional communities Population growth Local economy (m) Unemployment rate (%) +9% -6% 1,864 5.4 5.5 12,383 13,562 13,078 12,303 2.8 850 2.2 730 590 Roma area…
Respectful engagement We respect and proactively engage with landholders and native title applicants Work with the Forestry Corporation of NSW in the Pilliga Project area avoids Strategic Agricultural Land to the maximum extent…
Protecting biodiversity We recognise the unique environment of the Pilliga and are committed to minimising our ecological footprint Ongoing flora and fauna studies Since 2002, 25 ecological surveys totalling 3,500 person hours…
Water: baselines, monitoring and handling Glenn Toogood, Water Management Leader
A history of drilling Over 150 petroleum wells drilled in the past 70 years in the Project area and 90 CSG wells in the past 10 years The Namoi water catchment: 4,200,000 hectares 18,500 registered bores Santos Narrabri Gas…
Hydrogeological Targeted coal seams are isolated from the Great schematic Artesian Basin and alluvial groundwater systems by 200 300m of highly impermeable rock Great Artesian Basin Pilliga sandstone Aquitard highly…
Surface and groundwater The gathering of baseline data underpins our surface monitoring and groundwater modelling and monitoring Baseline data is collected from: 123 NSW Office of Water monitoring bores 17 new Santos aquifer…
Independent analysis Establishing baseline data - expert research, monitoring and modelling Water samples are: Collected by independent experts Securely transported to a NATA (National Association of Testing Authorities)…
Namoi Catchment Water No notable impact to regions groundwater sources Study Namoi Catchment Water Study: 4.5m study conducted in four stages over 2.5 years modelled a wide range of mining and CSG scenarios over the next 90…
Santos Regional Animation of basin hydrogeological sequence Groundwater Model 23 NARRABRI GAS PROJECT - JULY 2014
Santos Regional Robust, peer reviewed science underpins future Groundwater Model Project development The Santos Regional Ground water Model: Assesses the effect of depressurising / dewatering the coal seams on overlying groundwater…
Santos water portal Santos online water portal reflects our strong commitment to transparent operations Our online water portal provides www.santoswaterportal.com.au community access to: Water testing results from over 100…
Produced water Careful management and beneficial reuse of the water produced is a key area of focus Natural gas trapped in coal is adsorbed onto the coal surface in cleats or micropores and held in place by reservoir and water…
Produced water We prioritise water protection, preservation and productive reuse Water extracted must be licenced by: Water use in Namoi Catchment Area The NSW Government through its water sharing plans, and Agricultural & Santos…
Produced water facility State of the art Leewood produced water facility part way under construction Facility located outside the Pilliga on Santos owned land Replaces Bibblewindi (Eastern Star Gas) water storage and treatment…
Drilling with care James Baulderstone, Vice President Eastern Australia Drilling rig, Narrabri Gas Project
Drilling with care Santos draws on more than 50 years expertise of safe and responsible drilling of gas wells All wells are: Based on the Santos Drilling Operations Manual and are written, reviewed and approved by experienced…
Drilling with care Local geology and Santos best practice well design ensure natural gas is produced safely and groundwater is protected Steel conductor passes through topsoil into solid sandstone. It is drilled first and cemented…
Drilling with care The surface footprint of CSG extraction is small and temporary in nature Footprint of well during the construction phase: one hectare Footprint of well during the production phase: 25m x 25m, or 0.07ha for the…
Drilling with care Plugging and abandonment The entire wellbore is filled from bottom to surface with specially formulated oil-field grade cement in plug stages Individual cement plugs are limited to 200m in length and are Corehole…
Drilling with care Example of site rehabilitation at former well site The wellhead is cut off 1.5m below ground level Sites are fully rehabilitated back to original use including revegetation Brawboy, NSW Brawboy, NSW Brawboy,…
Santos publications & Extensive research will be made available to the public reporting across the life of the Project www.santoswaterportal.com.au www.santos.com/nsw 35 NARRABRI GAS PROJECT - JULY 2014
Conclusion Santos is committed to the safe and responsible development of NSWs natural gas resources Eastern Over 87% of eastern Australias 2P Reserves are held in coal seams Australias New gas supplies are needed to meet demand…
Santos Contact information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairnsantos.com…