- Black Mountain Energy (BME) expects more delays at its Valhalla project following “catastrophic” flooding in the Fitzroy Crossing area of WA in January
- BME was preparing to complete a rescheduled 2D seismic acquisition program in the first half of 2023 but now expects delays given access to the area is restricted
- Executing the program as planned has not been ruled out, but as a precaution, BME will apply for a suspend and extend application to the regulator
- The company anticipates ongoing limitations to access the project area, hampering tasks required to update its environmental review document requested by the EPA
- BME shares closed at 4 cents on Friday afternoon
Black Mountain Energy (BME) has flagged more potential delays at its Valhalla project in the Fitzroy Crossing area of Western Australia.
The area is still reeling from “catastrophic” flooding last month, which caused extensive damage to key infrastructure, and access to the area is restricted.
BME was preparing to complete a 2D seismic acquisition program at Valhalla in the first half of this year, but given the circumstances, said a delay was “very” possible.
A delay would be another setback to the seismic acquisition program that was originally scheduled for quarter three of 2022.
The program was initially put on hold pending final regulatory approvals, and the company was unable to get the ball rolling before the onset of the wet season.
BME said it had not ruled out executing the program in the first half of 2023 but as a precaution would apply for a suspend and extend application with the regulator.
The Environmental Protection Authority (EPA) has also asked the company to undertake additional baseline studies.
Carrying out additional work would add to the approval wait time, but the company also anticipates ongoing limitations to the project area due to the flooding, hampering any future activities.
Black Mountain said it was engaging with the Department of Water and Environmental Regulation and EPA services to determine the best path forward.
In the meantime, the company told investors it would have immediate production of around 1800 gross cubic feet per day or 465 net cubic feet per day from eight wells at the recently-acquired Half Moon project.
BME recently bought an interest in the oil and gas field in the Permian Basin of New Mexico from NYSE-listed company Earthstone Energy.
Here, the company said potential hydrocarbons were believed to exist in multiple formations.
BME shares closed at 4 cents on Friday afternoon.