IGNITE ENERGY RESOURCES LIMITED
Discussion with VPELA
April 16, 2013
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WORLD SCALE ENERGY RESOURCE VICTORIA’S ENERGY SECRET
Victoria:
The world’s largest & cleanest
lignite resource
– 430 billion tonnes in place
– Around 40 billion tonnes
mineable at $5 - $10 per tonne
– Energy content bigger than
North West Shelf
Percentage of world’s lignite:
Victoria
USA
China
Serbia
Germany
Victoria’s Competitive Advantage -
25%
20%
12%
9%
4%
Clean Energy Security Beyond Peak Oil
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2
EL 4416
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EXPLORATION LICENCE 4416
ONSHORE NATURAL GAS (CSG)
• EL 4416 is a very large tenement, 3,600 km2, occupies the bulk of the
onshore Gippsland basin
• There is a well documented large lignite resource in EL 4416
o Has significant quantities, 16 billion tonnes on mineable lignite
o Has some 200 billion tonnes of deeper lignite seams. There is good evidence
to suggest that this deeper lignite has the potential to contain a significant
resource of onshore natural gas
• Current activities relate to the assessment of the potential to produce
onshore natural gas from these lignite seams
• We are in the exploration phase, not the production phase
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Victorian Onshore Natural Gas is Different
• Methane gas is found in most coals worldwide and has been known as a
hazard in underground mining since mining began
• Methane is generated in coal by both biogenic and thermogenic processes
• Gas in low grade coals is primarily classified as biogenic
• Methane derived from Victorian lignites is different to that derived from
CSG operations in QLD and NSW
• IER’s pilot site at Burong (Seaspray) produced agricultural quality water in
contrast to the high salt content water in QLD and NSW
• Important to recognise that this is a new source of water – it is derived
from the lignite seams not from the acquifers
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Regulatory Issues
• In contrast to all other States, operations in Victoria are regulated under the
MRSDA, not the Petroleum Act
• Planning, environmental and associated regulation in Victoria are robust
and will protect landowner and community interests
o
o
o
o
o
Approved Work Programme
Environment Management System
Occupational Health & Safety Management Plan
Emergency Response Management Plan
Cultural Heritage Management Plan
• IER welcomes this level of regulation and has no difficulty in working within
the MRSDA and associated regulations
• Onshore Natural Gas projects present different challenges to normal
minerals development projects because of the extensive nature of these
operations
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Landowners & Access
• There is a major community misunderstanding regarding the rights of
access to properties for minerals exploration and development
• Landowner access must be based on:
o
o
o
o
o
Fair compensation
Open and transparent communication
Respect for Landowner’s property
Minimising disruption
Rehabilitation of Landowner’s property
The big issue is “social licence to operate”
– CSG development has become politicised
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The agricultural sector, water use and energy development can coexist
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