Black Mountain Energy has secured environmental approval from Western Australia's Environmental Protection Authority (EPA) for a gas exploration and appraisal programme at its Valhalla unconventional asset in the onshore Canning basin. The approval, which includes recommendations, allows for the drilling of up to 20 exploration wells across 10 pads over seven years, with hydraulic fracture stimulation planned for each well to enable gas flow for appraisal.

Project Details and Regulatory Context

The Valhalla asset, located on exploration permit EP 371 in the Kimberley region, has previously estimated prospective resources of 11.8 trillion cubic feet. The approved programme is structured in two phases: six wells in the first three years, followed by 14 wells in the subsequent four years. The EPA's conditions include limiting well testing to no more than 90 days of flaring per well and minimising disturbance to local biodiversity and Aboriginal cultural heritage. This development proceeds despite a state-wide fracking moratorium being lifted in 2018, with controls still banning the practice in over 98% of Western Australia.

Reactions to the Approval

The EPA decision has drawn mixed reactions. Black Mountain's executive chairman described it as an encouraging and material step forward for Project Valhalla. Conversely, environmental groups strongly criticised the approval. The Conservation Council of Western Australia (CCWA) labelled it "reckless," citing unaddressed concerns about groundwater contamination, impacts on subterranean fauna and endangered species, and increased greenhouse gas emissions. Environs Kimberley warned of significant electoral consequences if the state government does not reject the project, noting that Labor party members had recently voted for a renewed blanket fracking ban.

Industry Perspective and Next Steps

In support of the project, former Valhalla operator Buru Energy stated the EPA result is a win for the Canning basin and Western Australia, signalling that the region is open for responsible, regulated energy development. The EPA's decision is now subject to a three-week public appeal period, concluding on 10 February.