By JOHN VAN KLAVEREN
THE controversial practice of “fracking” could come to Geelong after oil and gas explorer Lakes Oil revealed it was conducting geological and geophysical studies in the region.
Chairman Robert Annells said the studies targeted the company’s PEP163 permit area from Geelong to Anglesea.
Mr Annells had “every reason to believe” the Otway basin, from Geelong to the South Australian border, was prospective for “tight gas fracking”.
Lakes Oil also had already drilled in a permit area near Port Campbell to prove the existence of “tight reservoirs”.
Mr Annels said sandstone-based tight reservoirs could typically produce up to 100,000 cubic feet of gas.
Lakes Oil’s gas extraction method was different to the controversial coal seam gas process, the company said in a letter to shareholders.
But Mr Annells said a State Government moratorium on fracking had “inadvertently” stunted the company’s progress.
Fracking involves the use of high-pressure water to fracture rock formations, releasing gas deposits.
Mr Annells said gas prices in Victoria were forecast to potentially double over the next three to four years as the east coast opened up to exports at world prices.
“Lakes has had discussions with a number of major Victorian manufacturing companies who have concerns about the availability of sufficient gas in the near future (and) the expected increases in the gas price.
“It is apparent that if Victorian industry cannot get a continuous supply of gas at reasonable prices, jobs in Victoria will be threatened.”
Federal Corangamite MP Darren Cheeseman called on State Government to maintain its moratorium on fracking.
Mr Cheeseman said Lakes Oil’s permit, ending in October, should not be renewed or extended.
“If State Government fails to heed my warnings I will convene a meeting of the community to protest this issue,” he vowed.
“This area is part of the Geelong water catchment, holding the Anglesea bore fields, and geological processes such as fracking sandstone will have a significant impact on the water table, the very water we drink.
“This area is part of the Otways National Park and is a part of Australia’s heritage listing and an environmentally significant area.”
