Join our daily newsletter At The Bell to receive exclusive market insights
- Black Mountain Energy (BME) receives important validation for its Valhalla project from a qualitative gas composition analysis by the Australian Gas Infrastructure Group (AGIG)
- AGIG confirms gas from the Valhalla project, which lies west of the Fitzroy River, will be suitable for integration with existing infrastructure in Western Australia
- A wide range of scenarios was considered as part of AGIG’s gas blending study using six years of actual production information from comparable producers
- lack Mountain says the AGIG conclusion that Valhalla gas was suitable for blending with other resources is an important milestone for the company
- Shares in Black Mountain Energy are up 3.33 per cent to 15.5 cents each
WA oil and gas play Black Mountain Energy (BME) has received important validation for its flagship Valhalla project from a qualitative gas composition analysis by the Australian Gas Infrastructure Group (AGIG).
Essentially, AGIG confirmed that gas from the Valhalla project, which lies west of the Fitzroy River, would be suitable for integration with existing infrastructure in Western Australia.
Black Mountain said a wide range of scenarios was considered as part of AGIG’s gas blending study using six years of actual production information from comparable producers. As part of the study, AGIG looked to determine the impact the Valhalla gas would have on the quality of gas available for export.
Several important factors, such as the composition of the gas to its higher heating value (HHV), the presence of ethane and propane in the gas, and limits on the gas’ nitrogen content were taken into consideration as part of the study.
The study also assumed that gas transported from Valhalla would meet the specification as used on the Dampier Bunbury Pipeline, so all gas from the Canning Basin region could be transported on existing gas pipelines.
Black Mountain said the AGIG conclusion that Valhalla gas was suitable for blending with other resources was an important milestone for the company as it sought approval to continue the development of its Valhalla gas resource.
The company is still working to meet the requirements of an export exemption from the WA government received in October 2021.
Black Mountain’s landholding in WA spans 3662 square kilometres, with Valhalla the eighth-largest undeveloped gas reservoir in the world and the last non-developed basin in Australia, according to the company.
Shares in Black Mountain Energy were up 3.33 per cent to 15.5 cents each at market close.
