OPERATIONS

Black Mountain CEO clarifies position on controversial Kimberley fracking project

Hasty intervention follows company president's recent comments

Black Mountain CEO clarifies position on controversial Kimberley fracking project

Credits: ENB/Black Mountain

Black Mountain Energy's CEO has distanced the company from comments made by its president about the future of its controversial Valhalla fracking project in WA's Kimberley, stepping in to hose down abandonment plans amid environmental pressure. 

As reported by ENB, at a recent oil and gas conference in the US, Black Mountain's president, George Witman, said the Valhalla project is "not something we can do with the resources and team that we have" and that the company is now "trying to market our Canning Basin asset."  

However, speaking exclusively to ENB CEO Rhett Bennett has walked back those comments. 

Rhett Bennett | Credits: Black Mountain

"We are most certainly not abandoning the project.  Far from it, we continue to invest capital into it every month as we work with regulators." 

"I think what George was trying to say is that we would utilise local resources to accomplish the development of the asset.   

"We are not actively marketing to bring in JV partners, but do assume at some point in one to two years, when permitted, we will bring in partners on the project, as is common risk mitigation practice in the oil and gas industry," he said.  

To emphasise the point, Black Mountain launched a new website over the weekend and released further statements on the project's progress. 

"Black Mountain has the right experience and competency to progress Project Valhalla, which is believed to be a significantly large on-shore unconventional undeveloped gas opportunity. Its strategy is to develop the project with expertise, creating long-term value for customers and stakeholders.  

"Beneficiaries of this success will include local communities, traditional owners (TO's), Western Australian government through taxes/royalties and material job creation. While waiting for its environmental approvals, the Company continues to engage with TOs, providing employment and education along with regular updates on the project," said the company. 

At present, the project's plans are being assessed at both the state and federal levels.  

Credits: Black Mountain

Black Mountain recently received feedback on its response to 8,000 submissions after the plan's publication. The "approval pathway is progressing with positive momentum," and it hopes to receive the Environmental Protection Authority's assessment report by mid-2025. 

At the federal level, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) has previously declared the project a controlled action and will be assessed by preliminary documentation. Black Mountain contests this, saying the project does not have the potential to result in a significant impact on Matters of National Environmental Significance and hopes to be able to de-risk the project by gaining legal certainty following the conclusion of the assessment, which may be before year-end 2025. 

This is not the first time the project has stumbled along its way. 

In October 2024, Bennett Resources, a subsidiary of Black Mountain, announced it had withdrawn the project from the federal government's assessment process. 

Then, two months later, the plan was resurrected with a new application lodged with DCCEEW. 

In response to today's apparent turnaround from Black Mountain, Lock the Gate Alliance WA spokesperson Simone van Hattem said: "Black Mountain appears to be promoting contradictory information about the status of its Valhalla fracking project. What's clear is fracking isn't worth the risk it poses to Kimberley's precious water, its unique environment, and the climate. 

Simone van Hattem | Credits: LinkedIn

"It wouldn't be the first time Black Mountain has provided contradictory information about this project - its original federal environmental application was a dog's breakfast. Unsurprisingly, the company delisted from the ASX after it failed to attract Australian investors.  

"Tanya Plibersek needs to reject this dangerous and polluting fracking proposal, and WA Premier Roger Cook should expand the existing ban on fracking that covers most of the state to include the whole of the Kimberley. This is a region that must not be sacrificed to destructive gas fracking."

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

Future of Energy Report: Nuclear Power in Australia 2024

Energy News Bulletin’s new report examines what the energy and resources industry thinks of the idea of a nuclear-powered Australia.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.