AGL Energy Limited · ASX:AGL

AGL Energy — Technical Presentation (September 2011)

30 slides from AGL Energy's technical presentation, Sep 14, 2011

  1. Slide 1: Water Studies Update – AGL Upstream Gas – CSG Projects

    Water Studies Update – AGL Upstream Gas – CSG Projects John Ross| 14 September 2011| Sydney

  2. Slide 2: CSG developments: Community and regulatory issues

    CSG developments: 2 Community and regulatory issues Land access, compensation and regulatory approvals Hydraulic fracturing Water resource impacts › Impact of exploration / production programs on water resources › Integrity of gas well construction › Connectivity of aquifers with deep coal seams Lon

  3. Slide 3: Groundwater 101

    3 Groundwater 101 Conceptual groundwater occurrence and flow Typical spring locations in the landscape Alluvial aquifers Shallow fractured rock aquifers CSG water bearing zones NOTE - This is a schematic only of groundwater flow through porous rocks and is not necessarily representative of any parti

  4. Slide 4: Importance of hydrogeology in CSG developments

    4 Importance of hydrogeology in CSG developments Today: › Why is NSW different to QLD? › Water resource impacts » NSW groundwater resources » Gas well construction » Connectivity – investigation methodology » Hunter conceptual model » Hunter Investigation Proofs  Water levels  Water quality  Isot

  5. Slide 5: NSW vs Queensland

    NSW vs Queensland _ NSAGL

  6. Slide 6: Why are NSW water issues different to QLD

    6 Why are NSW water issues different to QLD It’s all about knowing the geology and hydrogeology (both regionally and locally): › Permian-Triassic basins » Older rocks » Lower permeabilities » Few (low value) aquifers » Lower water volumes › Jurassic-Cretaceous basins » Younger rocks » Higher permeab

  7. Slide 7: AGL (NSW) PEL and PPL areas

    7 AGL (NSW) PEL and PPL areas AGL knows the (coastal) Permian-Triassic Basins in NSW: › Southern Sydney Basin (Camden Gas Project) › Northern Sydney Basin (Hunter exploration program) › Gloucester Basin (Gloucester Gas Project) Compared to QLD (Surat, Galilee, Cooper), coastal NSW has: › Tighter geo

  8. Slide 8: CSG water volumes

    8 CSG water volumes Total Field Produced Water Volumes Produced water volumes are a function of: 180 › Geology (rock type and permeability) 160 › Proximity to shallow aquifers and recharge areas 140 › Degree of confinement/isolation 120 Produced waters are small for NSW ML per year (coastal) Permian

  9. Slide 9: CSG water chemistry

    9 CSG water chemistry Groundwater chemistry is a function of: Total Dissolved Solids › Geology (rock type) mg/L 40,000 › Proximity to recharge areas, recharge rates and flow 35,000 › Residence time Produced waters are typically slight to 30,000 moderate salinity: 25,000 › Camden (Na-HCO3) » 4500 to

  10. Slide 10: Water resource impacts

    10 Water resource impacts › CSG – A Sustainable Australian Energy Source 31 March 2011 EIANZ Presentation

  11. Slide 11: Important NSW groundwater resources

    11 Important NSW groundwater resources › Murray Darling Basin Salinity of Shallowest Groundwater Sources » Top 6 alluvial valleys / fans ▪ Gwydir ▪ Namoi ▪ Macquarie ▪ Lachlan ▪ Murrumbidgee ▪ Murray › Great Artesian Basin › Oxley Basin › Coastal NSW » Alluvial sediments » Sand dunes » Basalt platea

  12. Slide 12: Water management in NSW

    12 Water management in NSW › Water Act (1912) » Part V bore licences (CSG wells and monitoring bores) ▪ 137 for Camden ▪ 30 for Gloucester ▪ 10 for Hunter › Water Management Act (2000) » Water Sharing Plans ▪ Greater Metropolitan (July 2011) » Aquifer Interference Approvals › Other Policies » Buried

  13. Slide 13: Gas production well design and construction

    Gas production well design and construction 13 (1) Well design and (2) From non aquifers Sucker rod Water Supply Production tubing Aquifers Production casing Cement CSG Water Surface casing Bearing Zones Centraliser Cement Cross section of well design Typical vertical well design » Industry Briefing

  14. Slide 14: Connectivity: Investigation methodology - Groundwater

    Connectivity: Investigation methodology - 14 Groundwater AGL’s staged approach to groundwater studies involves: › Phase 1: Desktop study – review of existing data, field visit, compilation of an initial conceptual hydrogeological model and recommendations regarding future phases. › Phase 2: Detailed

  15. Slide 15: Hunter water studies

    15 Hunter water studies › CSG – A Sustainable Australian Energy Source 31 March 2011 EIANZ Presentation

  16. Slide 16: Initial conceptual model: Recharge, discharge and flow

    Initial conceptual model: 16 Recharge, discharge and flow › Hunter (Bulga- Broke) SW Regional hydrogeological conceptual model NE Catchment Boundary Catchment Boundary Rain Rain » Direct rainfall Rain recharge to the Narrabeen alluvium Group Evaporation + Transpiration (Rn) Runoff Lateral Flow Evapo

  17. Slide 17: Permian geology

    17 Permian geology Schematic of geological sequence at Broke, Hunter Valley » Industry Briefing – Water Studies » 14 September 2011 » AGL External

  18. Slide 18: Aquifer and coal seam permeabilities

    18 Aquifer and coal seam permeabilities › Many coal seams across the Sydney Basin are NOT aquifers Low High to moderate permeability aquifers (sand, gravel and highly Very low permeability zones (clay, coal seams, permeability fractured rocks) claystones, unfractured rock etc) aquifers Permeability

  19. Slide 19: Updated conceptual model: Recharge, discharge and flow

    Updated conceptual model: 19 Recharge, discharge and flow › Geology › Hydrogeology › Hunter (Broke-Bulga) › Hunter (Broke-Bulga) » Siltstones and cemented sandstones » Shallow (limited extent) alluvial common within and above the coal aquifer measures ▪ Shallow water – fresh to brackish » Claystones

  20. Slide 20: (Lack of) connectivity proofs

    20 (Lack of) connectivity proofs

  21. Slide 21: Water level proofs

    21 Water level proofs 12 Day Pumping Test › Hunter (Broke) example Broke – Alluvium ~10m » 12 day pumping test (2009) » 150 day flow test (2010) › Pumping test: » Shallowest gas well (HB02) operational » Slotted opposite Blakefield CS (~323 m) » Drawdown to 130 mbgl (Q averaged 0.17 L/s) Broke - Why

  22. Slide 22: Water chemistry proofs

    22 Water chemistry proofs › Hunter (Broke) water types Hunter (Broke) Sampling Program – September 2009 » Uppermost (alluvial) aquifer – mostly Na- Alluvial and shallow fractured Cl rock water samples » Deep coal seam water bearing zone – Na- Cl-HCO3 » Discrete differences between alluvial groundwat

  23. Slide 23: Water chemistry proofs

    23 Water chemistry proofs › Hunter (Broke) – deep coal Hunter (Broke) 2009 seams Sampling Program (HB02) » Water types remained unchanged for coal seams over both 2009 pumping test and 2010 flow testing programs Hunter (Broke) 2010 Sampling Program (HB01 and HB02) Water type » Industry Briefing – Wa

  24. Slide 24: Isotope proofs

    24 Isotope proofs › Environmental isotopes (H2 and O18) » All groundwater is derived from rainfall All shallower aquifers plot here » More depleted signatures with depth suggest older water and longer residence times › Radiogenic isotopes (H3 and Hunter (Broke) examples C14) » Tritium only present i

  25. Slide 25: Hunter monitoring networks

    25 Hunter monitoring networks › Hunter (Broke) » 9 (dedicated AGL) bore locations  6 alluvial  2 fractured rock  1 coal seam › Other Hunter » 9 (dedicated AGL) bore locations  2 alluvium  2 fractured rock  5 coal seam (3 MB and 2 VWP) › Monitoring programs » Baseline monitoring  6 months + in

  26. Slide 26: Other monitoring networks

    26 Other monitoring networks › Gloucester » 28 (dedicated AGL) bore locations  2 seepage  2 gas drainage  6 alluvial  14 fractured rock  4 coal seam » 3 surface water locations › Camden » 15 (dedicated AGL) bore locations  3 sandstone/shale (new)  12 coal seam (for WQ) › Galilee » 6 (dedicate

  27. Slide 27: Produced water management

    27 Produced water management › CSG – A Sustainable Australian Energy Source 31 March 2011 EIANZ Presentation

  28. Slide 28: Produced water management

    28 Produced water management › Think strategically but act locally Project Specific › Cost effective and sustainable solutions » Industrial and commercial » Mining Beneficial » Primary production reuses » Raw water for domestic water supply » Offsite disposal at licensed facility » Reinjection » Env

  29. Slide 29: Conclusions

    29 Conclusions Water levels, quantity and quality are directly related to the geological and hydrogeological characteristics › Different basins have different characteristics » In Sydney Basin ▪ Permian coal seams are overlain by low permeability cap rocks › Hunter hydrogeology » Groundwater in the

  30. Slide 30: Links

    30 Links › Links » Camden - http://www.agk.com.au/camden/ » Hunter - http://www.agk.com.au/hunter/ » Gloucester - http://www.agk.com.au/gloucester/ » Industry Briefing – Water Studies » 14 September 2011 » AGL External

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