PACE Gas update
Fifteen applications were received for Round 2 of the South Australian Government’s $24 million PACE Gas fund and are now being evaluated.
The targeted grants will be used to accelerate the most meritorious investments in gas projects in South Australia.
The call for Round 2 proposals opened on 14 March 2017 and closed on 1 August 2017. The applications, lodged on behalf of 11 companies through 6 operators, represent a strong diversity of projects. Successful proposals will be announced in October 2017.
Conforming applications will satisfy the following key criteria:
- tenure (current South Australian licence)
- shovel-readiness (in place statement of environmental objectives, access to land and facilities)
- financial capacity (capacity to match the funds sought).
First Round 1 project to commence
The state government’s first round of PACE Gas grants provided $24 million in funding, with five winning proposals announced on 17 March 2017.
The first of these projects to commence is Beach Energy’s Otway Basin exploration project targeting conventional reservoirs, which received $6 million funding. Beach Energy announced the location of Haselgrove 3 conventional gas well in a media release on 11 July 2017. The well, located approximately 8 km south of Penola on state forestry land, will target the productive Sawpit and Pretty Hill sandstones within Petroleum Production Licence 62. Drilling activity is expected to commence in early September 2017.
More information about PACE Gas