april—may 2019 - amec.org.au files/convention 2019/adia... · the interlocking design self-aligns...

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www.adia.com.au 3AustrAlAsiAn Drilling APril/MAY 2019

Contents

Building bridges in Qld gas fields

page

20

Australasian Drilling(Incorporating Australian Drilling and The NZ Driller is the official journal of The Australian Drilling Industry Association Limited and The New Zealand Drillers Federation Inc.) Registered by Australia Post NBG 0073 Australian National Library ISSN 1320-6524.

Reproduction in part or whole is not permitted without the written permission of the Chief Executive Officer of The Australian Drilling Industry Association Limited.

The Association accepts no liability or responsibility for opinions expressed in this magazine, or for any loss or damage arising from any inaccurate information contained in any article or advertisement.

EditorJamie WadePhone: + 61 (0) 435 945 868Email: [email protected]

Advertising EnquiriesAustralia, New Zealand, Asia, North America Wade Business Media – Jamie Wade 12 Caravel Way, Halls Head, WA 6210 Mobile: + 61 (0) 435 945 868 Email: [email protected] Web: www.wadebusiness.com.au

Europe, Africa, Middle East Fabio Potesta Mediapoint and Communications SRL Corte Lambruschini-C SO Buenos Aires 8 Int 9, 16129 Genoa, Italy Email: [email protected] Web: www.mediapointsrl.it

Design & PrintingVanguard Press 26 John Street, Northbridge WA 6003 Phone: +61 (08) 9328 1388 Email: [email protected]

SubscriptionsADIA WA Office 5 Profit Pass, Wangara, WA 6065Phone: +61 (0) 8 6305 0466Email: [email protected]: www.adia.com.au

Volume 38, No 2 April/May 2019

Quiet achiever: Peter Pacey

page

44

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ADIA NEWS

Trade headwinds slow activity ....................... 6

More needed to improve confidence ......... 8

Win on visas in Goldfields ............................ 10

Busy agenda for committee..........................12

Magazine readership expands ......................14

DRILL 2019: registrations open ....................15

CSG industry hamstrung ............................... 16

SONIC DRILLING

New tech making sonic super .....................28

The power and the passion ..........................29

Meeting need for speed ................................30

TECHNOLOGY & TECHNIQUES

New depths in geothermal ............................31

Drilling down on PDC bits ............................34

PCD bit selection and care ........................... 35

Safety for high-pressure zones ...................36

Gong for core scanner ..................................39

MEMBER NEWS

Premises, truck range expanded .................38

GRE pipe a game changer ............................40

Manufacturing at Feaver pitch ..................... 41

NZDF NEWS

Cautionary tales on safety ............................42

Difficult times ...................................................43

page

18Spotlight on coal seam gas extraction

4 AuSTRALASIAN DRILLING APRIL/MAY 2019 www.adia.com.au

ADIA CONTACTS

AUSTRALIAN DRILLING INDUSTRY ASSOCIATION LIMITEDBoArd of directorS

PreSideNtPeter Jacobs +61 (0)413 608 034

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Life MeMBerS

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AdMiNiStrAtioNHeAd office

chief executive officer:

Peter Hall

Mobile: +61 (0)413 608 050

Email: [email protected]

Web: adia.com.au

WeSterN AuStrALiA

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Administration officer

Vanessa tedesco

Phone: +61 (0)8 6305 0466


Australasian Magazine editor &

Advertising representative:

Jamie Wade


Web: www.wadebusiness.com.au

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ADIA NEWS CEO’s REPORT

Trade headwinds slow activity

Peter HallChief Executive Officer

I recently had the opportunity to attend the Prospectors and Developers

Association of Canada (PDAC) Convention in Toronto in early March.

PDAC is by far the largest convention of its type in the world with around 1000 exhibitors and more than 20,000 visitors over four days.

The exhibitors comprised a large selection of service and supply providers; a “core shack”, which allows exploration companies to promote their leases to potential partners; and an investors exchange, which encourages dialogue with potential investors. There was also a comprehensive program of technical forums and investor presentations.

The PDAC Convention runs annually, so it is always a great opportunity to gauge attendee sentiment and what the outlook is for the global exploration industry.

With so much networking going on it does not take long to get up to up to speed with the forecast consensus.

What we are seeing in Australia, with a levelling off in exploration activity, is also a recognised global trend.

A lot of the global funding for the juniors is raised on the Canadian TSX, and the feedback from several Canadian drillers is that the situation in North America has tightened considerably. This is being caused by trade frictions around the world and concerns about world growth rates, which are heading south as a result.

Regardless of this, the drilling industry is getting on with things as usual and there were some outstanding exhibits and a wealth of information to learn from.

A couple of notable things around the equipment on display were the continuing advances in electronics and automation on drill rigs, as well as the proliferation of mobile underground rigs on offer.

While the ability to automate a drill rig is not new, having been around for more than 20 years now, it is clearly evident how much the electrical components have improved.

The robustness and ability to withstand contamination was always the weak-link, but the componentry now available has advanced a long way to addressing this, which is encouraging to see as automation and a “hands-off” approach is clearly the way of the future.

I also believe that Australia can take the credit for being the first to introduce mobile rigs for underground use, as some of the early designs would date back 20 years or more.

The need for innovation to increase productivity and safety and to allow contractors to become more competitive drove introduction of these rigs.

To witness this configuration of drill rig now being built and sold within the North and South American markets is a testament to their suitability for the job.

It is, however, the norm for these designs to cost upwards of $1m, which can be double the price paid for a comparative skid mounted rig.

Drilling contractors need to factor this into their tendering, as the increased investment needs to see higher rates bid on the job.

Productivity gains are likely when moving from site to site and setting up, however, actual time to drill the hole will

be similar. Maintenance costs will also be higher due to the mobile carrier that will require regular servicing and periodic repairs.

The other noticeable trend is the large number of firms providing software and data aimed at making exploration more precise and defined.

“Data mining” is used to describe a type of prospecting performed before placing an exploration team on the ground. This ability allows for digital processing of previously gained information from a lease and obtaining new data from geophysical testing.

using these results to identify drill-ready targets seems to be the way of the future.

As exploration targets get deeper, this will likely lead to more discoveries which is good for all, but whether it will lead to more or less drilling is anyone’s guess at this point in time.

If the global outlook improves later in the year, hopefully we will see more investment return to the juniors and they can turn that into more holes in the ground.

For more information, contact Peter at ADIA on 0413 608 050 or [email protected]

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POLICY

More needed to improve confidenceWarren Pearce CEO, Association of Mining and Explorations Companies (AMEC)

Exploration is crucial for finding new mines. And exploration requires

investment.

While attractive geology remains the key aspect for investment, the policy environment that dictates how exploration will take place can be the make or break for many investors looking to be a part of the next big discovery.

The Fraser Institute Survey includes 83 jurisdictions from all continents except Antarctica, with the aim to rank these jurisdictions in an investment attractiveness index.

The purpose of the survey is to create a comparison or report card for governments to use to improve or alter their mining related policies to attract more investment to their jurisdiction. And the survey is highly influential.

People and companies all over the world make judgements about their mining and resource investments based on this survey, which highlights the impact that policies and process can make.

Strong consistent legislation supported by clear timelines, efficient processing times, and incentives can encourage investment.

Conversely, inconsistent and ad hoc policy, duplication of processes, and conflicting policy can deter investment and directly impact exploration.

The results of the 2018 survey are not surprising given the return of confidence in the mining and mineral exploration sector.

Western Australia remains the most attractive investment jurisdiction for Australia, and ranks second overall in the world. This ranking is reflective of the increasing clarity and stability in the policy environment. It can also reasonably be interpreted that taking the gold royalty change off the table has played a large part in this increase in confidence. Both New South Wales and Victoria rose slightly, however, South Australia, Queensland and Tasmania all declined.

The survey makes quite clear that many of our states are still performing poorly,

however, a number of changes could attract investor confidence and increase investment.

The first of these is reducing red tape and increasing the efficiency around processes.

Exploration is a high-risk activity. A contributing factor making it high-risk is lengthy processing times for approvals. This can have huge financial implication for projects; it impacts on drilling and exploration programs, and on other service providers involved in the project.

While some longer processing timeframes are unavoidable, there needs to be clarity on these, as well as accountability by government departments if these timeframes are not kept.

Governments must not only create more incentives, they need to change policy that can inhibit the incentives or work against their purpose. A clear example of this problem can be seen in the drilling industry.

Co-funded drilling programs are used to attract private investment into greenfields exploration, and have proven effective at stimulating greater exploration. At the same time, greater exploration is been

hindered by a lack of a skilled workforce to carry out this activity.

While many co-funded drilling schemes are being extended across states, and despite considerable investment in training and local workforce, many drilling companies are still struggling with shortages of skilled drillers and offsiders.

These drilling companies need to access the overseas labour market through the Short Term Strategic Skilled Occupations List (STSOL) to access skilled and experienced labour, however, thanks to recent changes, are no longer able to.

Consequently, companies are turning away work, and are unable to operate at full capacity. This reduction in capacity has a direct impact on the industry, on investment confidence, and is counter intuitive to an incentive that promotes more drilling. It is a clear case of the left hand not knowing what the right hand is doing.

If we want to find new mines and grow our economy, we need to increase exploration. Exploration needs investment, and investors want certainty and stability. Governments can provide this stability though proactive measures.

We need regulatory reform, to attract investment for greater mineral exploration and mining in Australia, which will generate significant economic returns for the economy.

For more information, contact Warren on [email protected]

“A number of changes could

attract investor confidence and

increase investment.”

Co-funded drilling programs are used to attract private investment into Greenfields exploration, and have proven effective at stimulating greater exploration. Photo courtesy of AMEC.

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ADIA NEWS

Win for industry on visas in Goldfields

ADIA has welcomed an agreement that will allow employers to sponsor

drillers and driller’s offsiders in the Goldfields region, as great news for the drilling industry.

The Federal Government along with the City of Kalgoorlie Boulder recently signed off on a Designated Area Migration Agreement (DAMA) for the Goldfields region.

The Goldfields is one of the first regions in Australia to enter a five-year agreement with the Commonwealth aimed at ensuring skilled migrants contribute through employment in key roles where Australian workers are not available.

Covering 73 positions, up to 500 per year will be able to be sponsored by employers in a range of industries including childcare, health, mining, engineering and construction.

As part of this agreement, additional positions that are not on the National Skilled Occupation Lists have been

efforts to reverse the exclusion of drillers and driller’s offsider from National Skilled Occupation Lists, said this was great news for the drilling industry within the Goldfields region.

Rick said the move will assist in driving economic growth and fill critical employment gap within the Shires of Coolgardie, Leonora and Menzies along with the City of Kalgoorlie-Boulder.

Tim attended a Chamber of Minerals and Energy of WA event in Perth in March in which Rick and the Federal Minister for Resources and Northern Australia Senator Matt Canavan spoke.

“Minister Canavan spoke at length about his portfolio and the upcoming federal election,” Tim said.

“He also fielded a number of questions about how to encourage more people to study mining related subjects, fracking, his passion for regional communities to prosper from the resources sector and the need to only have state-based environmental approval agencies.”

- Jamie Wade

added for regions in which the DAMA covers.

“The difficulty in finding drillers and driller’s offsiders is well known within the Goldfields region, so within consultation of the local community, businesses and stakeholders the positions of driller and driller’s offsiders have been included in the agreement,” Federal MP for O’Connor Rick Wilson told Australasian Drilling.

“This means that under the DAMA, employers can follow normal sponsored visa protocols to employ these positions providing both parties meet the eligibility requirements.”

Standard sponsorship protocols exist including the fees, proof of genuine attempts to fill positions with Australian residents first and minimum salary thresholds. Visa applicants will still have to meet normal visa requirements including English testing, skills testing and age thresholds.

ADIA secretary Tim Westcott, who has been instrumental in the Association’s

ADIA secretary Tim Westcott [centre] at a Chamber of Minerals and Energy of WA (CME) event in Perth in March with [L-R] Vimy Resources managing director and CEO Mike Young, Association of Mining and Exploration Companies (AMEC) councillor Chris Reed, Northern Minerals managing director and CEO George Bauk, CME director policy and advocacy Rob Carruthers, Tellus Holdings chief operations officer and Michael Ingram, SMS Innovative Mining Solutions CEO Tony Monaghan, Federal MP for O’Connor Rick Wilson, Federal Minister for Resources and Northern Australia Senator Matt Canavan, Tawana Resources managing director of Mark Calderwood, Chevron Australia general manager - policy, government and public Affairs Kate Callaghan, Jason Mead, and Ausdrill chief operating officer - Australia Roy Coates. Photo: CME.

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ADIA NEWS

Bruce Keogh (QLD), Kym Howard (QLD), Mick Hobin (VIC), Stan Gricks

(ADIA drilling representative), Kevin Dennis (SA), Mark Ballard (NT), John McAvan (ADIA WA) and Peter Hall (ADIA CEO) met for the Committee’s first meeting of the year.

ADIA has resumed the Chair role for the Committee, with Peter taking on the position, due to the impending retirement of Kevin Dennis from SA.

“Kevin has been a very fine contributor to the NuDLC over many years and we wish him well in his retirement,” Peter said.

A representative from PwC Skills for Australia attended the meeting on day one to facilitate input from the committee for a review of the National Training Qualifications pertaining to waterwell drilling.

units reviewed included: conduct rotary drilling; perform cable tool drilling; construct monitoring bores; construct single aquifer production bores; carry out grouting and cementing operations;

and lastly, construct multiple aquifer production bores.

The second and third days focused on reviewing the Minimum Construction Requirements for Water Bores (MCR) reference manual.

“The Committee publishes this highly informative manual, and it is the go-to reference book for information and guidelines applicable to drilling and constructing a water bore in Australia,” Peter said.

“It is also recognised by all State Regulators around the country and certain parts of it are legally enforceable.”

The latest edition of the manual was published in 2012.

“Aquifer protection is the main underlying aim of the publication, and it was identified that there is no need for a major rewrite. The update will comprise smaller amendments and update of some diagrams,” Peter said.

“If you use the MCR and know of something that needs changing, please

respond in writing to me with the details and justification. We can then add this to the review. We expect the complete process to take about 12 months.”

Another key issue on the Committee’s agenda was a matter regarding a restriction on licenses between different jurisdictions.

Peter said the states, in some instances, were issuing a restriction on licenses when issuing a state conversion.

“An example given was of a contractor who had been drilling in Victoria under a Class 1 license and only drilling shallow monitoring bores less than 30m deep. When they applied in Queensland under the NuDLC national license system, they were given a restricted Class 1 license,” he said.

“unrestricted licenses will not be issued in another state unless the applicant can show proof of experience in their home state.”

For more information, contact Peter Hall at ADIA on 0413 608 050 or [email protected]

- Jamie Wade

Busy agenda for licensing committeeADIA was well represented at the National uniform Drillers Licensing Committee’s (NuDLC) meeting in Brisbane in March where a review of training qualifications and a manual on drilling and constructing water bores were high on the agenda.

[L-R] Bruce Keogh (QLD), Kym Howard (QLD), Mick Hobin (VIC), Stan Gricks (ADIA drilling representative), Kevin Dennis (SA), Mark Ballard (NT), John McAvan (ADIA WA) and Peter Hall (ADIA CEO) in Brisbane for the National Uniform Drillers Licensing Committee’s (NUDLC) first meeting of the year.

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ADIA NEWS

Hi everyone! Australasian Drilling is the official

drilling journal of ADIA and NZDF and serves to inform the wider industry of key industry events and updates.

To ensure the magazine reaches the right audience, we recently conducted a review of our contacts and recipients.

As of mid-March 2019 our Australasian Drilling mailout sits at 1690 recipients and has been steadily growing over the past few months.

While the majority of the readership lives in Australia, eight percent is overseas and includes recipients located as far away as Europe and North America.

Currently, our biggest growth in readership is thanks to our current recipients, you, connecting us with your industry contacts. This has been fantastic for us, as we have been able to reach people we might not have otherwise come in contact with, and they now make up nearly a third of our mailout!

Magazine distribution by industry sector is quite widespread, as can be seen in the graph below.

Contractors make up the majority of our mailout.

Government bodies including regional councils like Association of Mining and

However, with recent growth in other sectors, especially mining and exploration companies and other industry consultants, we want to encourage drilling contractors to consider using Australasian Drilling to also reach out to their customers and improve the presence of their brand. And then, if you have customers you think would benefit from receiving a copy of the magazine, please let us know.

Don’t forget also that ADIA has member logos that can be used on your promotional material to signify that you are part of the association!

If you would like to know more about contributing to Australasian Drilling, please contact Jamie Wade on 0435 945 868 or [email protected]

Exploration companies (AMEC) and Queensland Resource Council (QRC) make up the second largest portion, followed closely by individual members.

The magazine has been growing in the number of mining and exploration companies it reaches.

With each magazine edition comes another push for advertising; but our aim is to make sure that your advertising is worth your while, and that your customers see your investment. It is for this reason that we’ve been conducting this review and working hard to grow our readership to include everyone with an interest or connection to the drilling industry.

Currently, most advertising in Australasian Drilling comes from suppliers displaying their products and services to a wider customer base. This makes sense due to the large number of contractors who receive the magazine.

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readership expanded to explorers and miners Kyrstie Rankine ADIA Communications Officer

“Australasian Drilling’s mailout

sits at 1690 recipients and has

been steadily growing over the

past few months.”


DRILL 2019: DRILLING DOWN ON SKILLS

This edition of Australasian Drilling includes the delegate prospectus

with all details including accommodation options.

Delegates can register for the conference and book accommodation at https://inhouseevents.eventsair.com/drill-2019/rego-general

Delegate registration includes access to all exhibitions and conference presentations, the Welcome Cocktail Function sponsored by Sandvik on the Tuesday night and the Thursday Conference Dinner sponsored by Metzke.

Partner registrations are also made through the website. Partner registration includes the Tuesday and Thursday evening functions and a site-seeing tour of Darwin on the Wednesday.

Please note that the Wednesday Offsite dinner, sponsored by the Northern

Territory Government, is not included in

standard registration and tickets much be

purchased separately.

ADIA has also partnered with Darwin

Welcomes Delegates with discounted

rates to a variety of tourist activities. The

prospectus has further detail on how to access these discounts.

DRILL 2019 will feature presentations on updates on the training and skills sectors, effective business management and the latest in drilling equipment technology and trends.

For more information, contact ADIA on 08 6305 0466 or [email protected]

driLL 2019: registrations openDelegate registrations are open for ADIA’s DRILL 2019 conference and exhibition at the Darwin Convention Centre from 17 to 19 September.

Discounted accommodation rates are available at a variety of locations in Waterfront Precinct surrounding the Darwin Convention Centre.

Partner registration includes the Tuesday and Thursday evening functions and a site-seeing tour of Darwin on the Wednesday.

• Aqseptence (Johnson Screens)• Australasian Drilling Institute• Baroid• Boart Longyear• Colleagues Matrixx• Department of Environment, Land,

Water and Planning (DELWP) Victoria• Drilltechniques• Epiroc

• Imdex• Itch Mining & Resources• MinterEllison• MinEx CRC• PwC Skills for Australia• QTEC• Redfield Resources• Sandvik

Speakers from the following companies will be presenting at the conference:

Registration includes access to

all exhibitions and conference

presentations, the Welcome

Cocktail Function sponsored by

Sandvik on the Tuesday night and

the Thursday Conference Dinner

sponsored by Metzke.

Drillers World 14.11.18


FROM THE EDITOR

CSG extraction industry hamstrungThe coal seam gas extraction industry has exploded over the past five years, but significant obstacles must be overcome to realise its full potential.

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DESIGN – ENGINEER – MANUFACTURE – MAINTAIN

Australia’s coal seam gas extraction (CSG) industry is estimated to be worth $13.5b

in 2018-19.

Substantial investment has led to the development of massive liquified natural gas (LNG) production facilities in Queensland, which accounts for most of the output capacity from CSG extraction.

The industry is expected to grow fairly well at about one percent year-on-year over the next five years thanks to growing demand from Asia – particularly Japan.

However, rising gas output from other countries, particularly Qatar and the united States, will subdue global price growth, meaning that there might not be the same degree of commercial opportunities to justify more growth in output.

In this environment, it is highly unlikely we’ll see more billion-dollar LNG processing facilities being built in Australia to process coal seam gas.

The Federal Government’s push to divert LNG output to the domestic market does not exactly encourage investors to finance a large project.

More worrying though are concerns about a gas supply shortage (see article on page 18). On the upside for the drilling industry, thousands more wells will be needed.

Bans on coal seam gas extraction are unlikely to be withdrawn as public opposition to fracking remains intense.

That said, moves to limit CSG extraction to areas far away from residential centres

in New South Wales, Northern Territory and Western Australia suggests that CSG extraction is more palatable, so long as it’s far away from residential developments or agricultural activity.

The Liberal Federal Government has been pretty vocal about wanting states to remove bans to free up gas supply. However, these states remain unlikely to do so and, given the Liberal National Government is expected to lose the next election, we’re probably not going to see much impetus to force those states to roll back those bans.

The opportunities for coal seam gas development in Australia are great, but so too are the hurdles – for the time being anyway.

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ENERGY - COAL SEAM GAS

The shortage would cut output to four LNG production trains from the

current six trains built on Curtis Island off Gladstone by three project owners.

underpinning the production noose is an emerging forward reliance for feedstock on gas reserve estimates that could fall well below delivery expectations, according to a new report by EnergyQuest.

All three projects rely on coal seam gas (CSG) sourced from the Bowen and Surat Basins.

The report’s findings show that there is now doubt of sufficient Queensland CSG gas being available for the three Gladstone plants to ever achieve full-scale production.

The plants operated at only an average 82 percent capacity in calendar 2018.

Crunch time is expected by 2025 and will be exacerbated by potential political pressure for Gladstone LNG operators to divert gas to the domestic market.

Any Gladstone plant shut-down is not expected to dampen Queensland’s new

The Queensland concerns form part of a broader 130-page EnergyQuest report titled East Coast Gas Outlook to 2036.

The Queensland CSG story is globally unprecedented, going in under 20 years from producing virtually nothing to nearly 1,400 petajoules (PJ) in 2018.

The three Australian east coast projects are all successfully producing, with China the biggest market (70 percent of 2018 Queensland exports) followed by Korea (16 percent) and Japan (9 percent).

However, two projects, the Shell-operated QCLNG and the Santos-operated GLNG, are operating well below capacity due to insufficient gas supply and diversions to the domestic market. In 2018, QCLNG averaged 87 percent capacity utilisation and GLNG only 65 percent.

unfortunately, there are serious headwinds coming and the outlook is less rosy as the industry over-reached by building three projects of six trains.

Queensland will remain a significant LNG exporter, one of the world’s

status as a major global LNG supplier, but its LNG potential has been summed up as “now is as good as it will get”.

The findings above have emerged from EnergyQuest’s most intensive scrutiny yet of the Queensland LNG sector’s exploration, production, supply, price and market risk outlook.

EnergyQuest adopted a ‘ground up’ approach to intensely analyse corporate and government drilling data from ~10,000 Queensland CSG wells, Reserves bookings for ~60 Authorities to Prospect (ATP), 120 Production Licences (PL) and production data since 2005 for 120 PLs.

Gas supply shortage looms Queensland faces the partial shut-down of a third of its barely decade-old $84 billion LNG industry by the middle of next decade due to a gas supply shortage, together with diversions to the domestic market. Dr Graeme Bethune, Chief Executive Officer, EnergyQuest writes.

A looming gas shortage would cut output to four LNG production trains from the current six trains built on Curtis Island off Gladstone by three project owners.

“Maintaining current export levels

will require drilling an ultimate

total addition of more than

18,000 wells.”

www.adia.com.au 19AuSTRALASIAN DRILLING APRIL/MAY 2019


largest, but with more like four trains fully utilised, reducing medium-term exports to around 17 million tonnes per annum (Mtpa).

The three plants have a combined nameplate capacity of 25.3 Mtpa, but there is insufficient gas to run the plants at capacity and also meet supply the needs of the domestic market.

Building six LNG trains in Queensland using CSG was bold and visionary but ultimately a bridge too far.

We have to recognise that the capacity of the east coast’s CSG resource base to feed multiple LNG trains was largely untried. The emerging and critical shortages are resulting from the fact the CSG LNG projects were sanctioned on ambitious estimates of Proved and Probable (2P) reserves, not Proven (1P) reserves that underpin conventional LNG projects.

The emerging reserves risk is already evident. According to estimates published by the Queensland Government, Queensland 2P CSG reserves peaked in June 2015 at 42,733 PJ. Three years later, by June 2018, 2P reserves were down to 35,074 PJ, a drop of 7,660 PJ after only 3,570 PJ of production. Over 4,000 PJ of 2P reserves have had to be revised down.

Rather than Queensland exports ultimately rising to 25 Mtpa, current export levels are likely to be as good as it gets and maintaining these will require drilling an ultimate total addition of more than 18,000 wells.

EnergyQuest noted Santos GLNG had already negotiated down its offtake contracts from 7.2 Mtpa to 6.0 Mtpa and is yet to reach even this level.

With dwindling production from southern gas fields, the political pressure on the LNG producers to divert gas to the domestic market is likely to intensify.

Queensland CSG supplied 25 percent of east coast demand in 2018 and this is likely to increase. However, there are limits to how much gas can be diverted domestically. There are infrastructure constraints on the volumes of Queensland gas that can be diverted to the southern states. There are also the constraints of international LNG contracts.

Historic factors

EnergyQuest’s permit-by-permit assessment of Queensland’s 2P CSG reserves categorised them into Most Certain, Less Certain and Least Certain.

Our new production forecasts suggest

a growing gap between Queensland-

based CSG demand (domestic and

export) from the middle of next decade,

with stresses on meeting domestic peak

winter demand as early as 2023.

While there is some scope to increase

indigenous supply through exploration,

it generally takes a long time and

involves significant exploration risks.

The scope for doing so is also limited

by exploration restrictions in New South

Wales and Victoria.

Dr Graeme Bethune led work on a

report into the market by Adelaide-

based independent energy consultancy,

EnergyQuest. For more information,

contact Graeme on 0419 828 617 or

[email protected]

Only 56 percent of these booked 2P reserves have demonstrated any commercial productivity (Most Certain). This means 44 percent are in licenced areas which have not demonstrated commerciality, reinforcing the growing forward uncertainty attached to CSG reserves.

In the past year, more than 3,000 PJ of these 2P reserves, and approximately 5,000 PJ of Best Estimate Contingent (2C) Resources, have been written off. Arrow Energy’s Surat acreage is the major potential source of uncontracted 2P reserves, but 80 percent of this is in the Least Certain category.

This is at a time the east coast LNG plants are operating below full capacity, compared with over 100 percent of nameplate performance at west coast LNG plants.

Coal seam gas well in Queensland. The EnergyQuest report revealed that there is now doubt of sufficient Queensland coal seam gas being available for the three Gladstone plants to ever achieve full-scale production.

The Queensland coal seam gas story is globally unprecedented, going in under 20 years from producing virtually nothing to nearly 1,400 petajoules (PJ) in 2018.



GasFields Commission CEO Carolyn Collins said the onshore

gas industry in Queensland was in a completely different state of play these days compared to the early days of the ‘gas boom’ when frustration and uncertainty was fueled by the pace of the industry and lack of available scientific information.

With the introduction of an improved regulatory regime in 2012, and the Commission’s work in consultation and information sharing, the foundations have been laid for stronger, longer-lasting collaboration and partnership opportunities in the gas fields.

However, the work is not over yet. The industry continues to expand into new areas of Queensland, and with that expansion comes new and unexpected challenges regarding stakeholder relationships.

“Each community affected by gas industry operations has its own unique set of concerns and priorities. Likewise, each gas company operates differently, as do individual development projects,” Carolyn told Australasian Drilling.

In most areas, relationships in the gas fields are generally positive, balanced and sustainable. In other areas, there exists significant issues and concerns that are not yet resolved.

involved, as well as new groups of stakeholders.”

“It is important for the Commission to engage early with areas where the industry is likely to move into, tailor our communication on a case-by-case basis and address the unique concerns of each area.”

Key issues

Another function of the Commission is to advise government entities about the need for greater transparency regarding sharing information between landholders, regional communities and the gas industry.

Carolyn said the Commission continued to work closely with all stakeholders to improve the flow of key information and data.

The Commission also provides advice to the Queensland Government regarding the ability of landholders, regional communities and the gas industry to coexist in areas of regional interest defined under the Regional Planning Interests Act 2014.

“The GasFields Commission’s vision is to have informed and self-reliant communities in the gas fields,” Carolyn said.

Negotiating agreements with landholders is an area that was

The gas industry is currently starting to operate in high-value cropping areas of Queensland.

“Not surprisingly, this is introducing a completely new set of relationship pressures between landholders and the gas industry that do not affect the much larger grazing properties that exist in areas, such as Roma, where the gas industry has been operating for many years,” Carolyn said.

The groundwater systems in the Surat Basin have been the subject of immense scientific research over the years through the work of the Office of Groundwater Impact Assessment, The university of Queensland’s Centre for Coal Seam Gas (CSG), CSIRO’s Gas Industry Social & Environmental Research Alliance, and more.

While this region could arguably be labelled the most researched region in Australia, said Carolyn, new areas of gas development outside of the Surat Basin haven’t received such focus and perceived gaps in scientific knowledge can create relationship tensions between communities, government and the gas industry.

“New projects have recently been announced that will provide gas solely for the domestic market. These operations introduce different challenges for the gas companies

Building bridges in Qld gas fields As an independent statutory body, GasFields Commission Queensland has made significant progress in facilitating better relationships between landholders, regional communities and the onshore gas industry since it was established in 2013. Jamie Wade writes.

GasFields Commission Queensland delivers face-to-face engagement in the form of workshops, forums and information sessions throughout regional Queensland to bring practical information and speakers with expert knowledge to those who seek it. Photo courtesy of GasFields Commission Queensland.


identified in an independent review of the GasFields Commission as needing improvement.

Independent reviewer, Robert Scott noted that, “When it comes to negotiating compensation in particular, there can be a real information asymmetry between a landholder and a CSG company as a CSG company will have negotiated many such agreements”.

In response to recommendations that came out of this review, the Commission is regularly consulting with landholders, government and gas industry to develop and recommend practical tools that aim to improve industry practices, such as landholder negotiations.

The Compensation Estimator is one of the tools the Commission has developed to assist negotiations by increasing landholder understanding of the compensation process. The tool provides landholders with a step-by-step process for understanding and estimating their compensation entitlements if a gas company wishes to operate on their property.

“It’s accessible via the Commission’s mobile application – GasApp – which also acts as a vital source of information tailored for the particular person using it,” Carolyn said.

GasApp allows people to stay informed about what is happening locally and regionally in the gas fields by accessing a library of relevant information and receiving targeted notifications directly to their phones. It also allows people to submit questions, concerns, locations and photos directly to key government regulators.

communication is king

Carolyn said the Commission identified that inadequate communications in the early development of the CSG industry created fear and confusion among many gas field communities.

Robert Scott, noted a ‘…low level of knowledge by landholders of the complexities involved in CSG matters and corresponding low levels of self-reliance’.

“Recommendations from this review and our own major learnings have resulted in the GasFields Commission adopting a priority policy of stronger communication and education at all levels to demystify the gas industry and afford stakeholders the opportunity to make informed decisions,” Carolyn said.

informed and access up-to-date resources on the go,” Carolyn said.

“We also provide practical printed material to our stakeholders and are in the final stages of producing the Gas Guide that will encompass everything a landholder needs to know about gas development – from the release of land tenure all the way through to rehabilitation of the site.”

drilling industry

Carolyn said the GasFields Commission often liaised with drilling companies and other local businesses in the gas fields.

“Many gas companies have clear ‘buy local’ policies and the Commission has developed some useful information to assist businesses to engage with the onshore gas industry,” she said.

“Our ‘Local content’ checklist contains opportunities made available to businesses based in the local community to provide goods and services to the onshore gas industry and their lead contractors.”

“We can also refer drilling businesses to local chambers of commerce, economic development organisations and relevant government agencies that are likely to provide powerful business networks.”

Carolyn said the GasFields Commission supports balanced and respectful business relationships between resource companies and landholders. This also extends to drilling contractors which operate on private land on behalf of the resource company that holds the tenure.

Resource companies or contractors operating on private land must follow mandatory conduct conditions set out in Queensland’s Land Access Code, and agreed conditions in a Conduct and Compensation Agreement (CCA).

Drilling contractors wanting to know more about working with the onshore gas industry in Queensland or building successful working relationships in the gas fields are welcome to contact the GasFields Commission on (07) 3067 9400.

The Commission’s website also hosts some valuable information, including a video series that shares insights from local businesses, community groups and training programs. Visit gasfieldscommissionqld.org.au > local-business-insights.

“The Commission has a strong focus on making accurate information and data available to all our stakeholders. Our challenge is to communicate this information effectively in a large area of Queensland that has vastly different qualities of communications technology.”

“We achieve this through the development of a wide range of communication tools to suit the needs of our varied audience.”

“We deliver face-to-face engagement in the form of workshops, forums and information sessions throughout regional Queensland to bring practical information and speakers with expert knowledge to those who seek it.”

The entire Commission is also equipped to be completely mobile, so that staff can respond to areas of greatest need at short notice.

“Our online channels – website, Facebook, Twitter, Instagram, LinkedIn and YouTube – enable people to stay

“GasFields Commission

Queensland can refer drilling

businesses to local chambers of

commerce, economic develop

organisations and relevant

government agencies that

are likely to provide powerful

business networks.”

- GasFields Commission CEO

Carolyn Collins

www.adia.com.au 21




Aspecially engineered bentonite plug is showing potential as an even more

effective and permanent seal of bores than the cement-based plugs used currently.

The plug’s development is the result of ground-breaking research made possible by a large collaborative partnership which bought together a broad collaboration of government, industry and technical specialists to work on the novel technology.

The research effort was led by The university of Queensland Centre for Coal Seam Gas, a university-industry partnership between The university of Queensland, APLNG, Arrow Energy, Santos and QGC/Shell.

The plug has now been trialled thanks to a proactive partnership between the Queensland Government Department of Natural Resources, Mines and Energy (DNRME), The university of Queensland

been used in combination with the special grout formulated by Nautec. The grout has been specially designed to flow into small cavities and cracks in rock formations and provide a gas-tight seal. It was mixed on site by Renviro.

Director of The university of Queensland Centre for Coal Seam Gas, Professor Andrew Garnett, said that the trial successfully tested the main advantage of the bentonite plug – its ability to ‘re-heal’ after any physical disturbance.

“Initial testing showed it actually increased in sealing performance during the healing process,” Andrew said, “At present, it is not an industrially-ready replacement for conventional cement – but it has promise”.

For more information, contact the Centre on (07) 3346 4101 or [email protected]

Centre for Coal Seam Gas and private companies Nautec and Renviro. DNRME managed the field operation with Dynamic Drilling (Aust) Pty Ltd providing drilling services. The trial was conducted at an old coal exploration borehole just out of Chinchilla.

The bore had been marked for sealing due to higher than expected methane levels recorded at the surface, making it ideal site for the trial. It was the plug’s second run in the field, following on from a successful initial trial at a water monitoring well near the Shell/QGC’s Bellevue coal seam gas field near Miles, Queensland in 2016.

The trial used approximately 500 plugs (each 19cm in length) to seal the coal exploration hole. It involved re-drilling the coal borehole to its full depth of approximately 114 metres and filling it with the bentonite and a gas-tight impermeable grout. It was the first time the plugs had

Innovative bore sealing technologyA Queensland research project has trialled an innovative new environmental technology which could further improve the way unused coal, mineral, oil and gas wells and water bores are sealed off.

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The outlook for drilling contractor Easternwell is very positive, according

to Broadspectrum chief executive for resources Tim Phelan.

“Our business is well set up for the more technically challenging coal seam gas (CSG) drilling scopes because of the quality of equipment that we have and the highly competent and experienced members of our team,” he told Australasian Drilling.

“We have a strong opportunity to support or manage drilling programs beyond the rig operation because of our supply chain and logistics and our training and recruitment capability.”

Broadspectrum provides innovation solutions across the social, defence, property, infrastructure, resources and industrial sectors. Subsidiary Easternwell employs more than 1000 staff Australia-wide and specialises in drilling, well servicing and camp management services to the mining, minerals, oil and gas industries.

“Our commitment to improving our performance and capabilities is evidenced by our world-class rig fleet,” Tim said.

“We are experienced in developing new rig technology specifically suited to the Australian oil and gas industry underpinned by modular design principles for flexible and scalable configuration across diverse operations.”

Easternwell’s energy business has four drilling rigs and 19 well servicing rigs at more than 90 per cent utilisation.

Following strong investment in innovative technology and techniques over the last 10 years, Easternwell is poised to reap the benefits of growing demand for its services from clients including Chevron, Galilee Energy, Origin Energy, Santos, Senex Energy, Shell QGC and Tri-Star Petroleum.

The company has built 16 new rigs in the last 10 years investing more than $186 million in new rig technology.

Easternwell is building four new rigs to meet increased demand with the first rig, Australia’s newest well servicing rig – the Advantage Light Rig Extra (ALRx) – to

capacity and ensure industry compliance and reliability. An upgrade to the circulating system to give more volume and more pump pending operational requirements is in the design phase.

The three new well servicing rigs (ALRx) are specifically designed for CSG workover operations with integrated push-pull capabilities for working on live wells under pressure, a top drive for increased rotary torque, enhanced hands-free operations and a simplified rig up/rig down process.

“Easternwell operates the largest workover rig fleet in the CSG industry in Australia,” Tim said.

commence work in the Surat Basin in mid-2019.

Further demonstrating Easternwell’s technical capability, the company’s workshop team has upgraded Easternwell’s Advantage Drilling Rig 101’s mast and drawworks to increase the hoisting capacity to 260,000 pounds, increasing the rig’s capability to drill depths to 3000m.

The team also installed new high-pressure pipework and added a second shaker and mud system for increased fluid storage. The rig also received extensive maintenance to all ancillary equipment to improve operational

Eastern gas business all wellAs a significant player in the coal seam gas drilling sector, Broadspectrum subsidiary Easternwell is seeing new projects approved and an increase in activity. Jamie Wade writes.

Easternwell’s Rig 101 operating in the Surat Basin. Photo courtesy of Easternwell.



Projects

Easternwell provides a range of exploration, development and production well drilling and well servicing operations including initial completion, flushby, workover, abandonments, snubbing and downhole and intervention services.

This includes the full suite of support activities needed for successful operations in both conventional and unconventional oil and gas.

A CSG exploration drilling project for Santos from 2009 to 2013 was a large feather in the cap for Easternwell allowing the company to develop new innovative technology and to hone invaluable technical skills.

Easternwell designed, engineered and built three Advantage Drilling Rigs – Rig 101, Rig 102 and Rig 103 – in Australia specifically for this project which commenced in 2009.

“At the time the rigs were an innovative and revolutionary advance in the CSG drilling industry,” Tim said.

“Their superior safety features and design allowed for efficient and accurate project delivery while minimising environmental disturbance and noise pollution.”

Easternwell’s Advantage Drilling Rig 101 is currently working on a one-year contract with Origin, upstream operator of Australia Pacific LNG, to provide drilling services in Queensland’s CSG fields.

Rig 103 – currently working for Galilee Energy – has a mast capacity of 180,000 pounds and is capable of drilling CSG production and coring wells as well as conventional gas wells to depths of 1800 metres.

pressure, high temperature tight gas holes to plug and abandonment campaigns.”

Safety

Tim cited improvements in safety through automation and the design of hands-off technology to limit manual handling and reduce risk exposure for the drilling crew, as key trends in technology and techniques over the last decade.

“Rig and equipment packages are modular in design to provide greater flexibility and improve logistic efficiency by reducing non-productive time during rig moving, rig up/down time and reduce transportation costs,” he said.

In CSG drilling, said Tim, the challenges are mainly around logistics and moving rigs efficiently from one well to the next safely and efficiently with as little non-drilling time as possible.

“Clients demand highly efficient rig moves,” he said. “In some cases we are broadening our services that we are expected to provide or subcontract, for example, wireline and cementing services.”

“Where we may be on deeper wells for 30-plus days, a typical CSG well takes three to four days to drill so we are regularly moving the rig,” he said.

“Through a combination of our operations, engineering and projects teams we continually work on improvements to our rig move capability to reduce the time that it takes to move a rig.”

Tim said there was also an increased focus on leadership competency at Easternwell with the introduction of ‘Assist & Assure’, a leadership skills program developed by Shell and supported by Safer Together that focuses on engaging the workforce through three strategies: (1) transition to work; (2) working safely; and (3) effective supervision - before, during and after work.”

Maintaining competent crews, added Tim, was another challenge for the business and the industry given its cyclical nature.

“In working with our customers we endeavour to establish longer term drilling arrangements to keep people engaged in the industry and to attract new people into the industry,” he said.

“We operate a Registered Training Organisation to provide high quality and contextualised formal training and leverage on our drilling and workover operations to maintain consistent work for our rig crews and support teams.”

“The automated pipe handler, iron roughneck, hydraulic elevators and slips and Blowout Preventer Handling are designed to improve efficiency and reduce risk exposure for the drilling crew,” Tim said.

Easternwell’s Ideal Prime Drilling Rig 106 – currently working for Tri-Star Petroleum in the Bowen Basin before mobilising to the Perth Basin for Strike Energy – is a 1500 horsepower AC Triple Drilling Rig for conventional gas wells.

“The technology of the rig sets it apart from other drilling rigs with enhanced mobility, unparalleled control, increased torque, enhanced safety and environmental features,” Tim said.

“With a mast capacity of 750,000 pounds, 1,600 barrel mud system and three 1,600 horsepower mud pumps, this rig’s capability extends from drilling deep, high

Coal seam gas is the largest drilling scope in Australia by number of wells and number of rigs drilling those wells. Photo courtesy of Easternwell.

“Clients demand highly efficient

rig moves.”

- Broadspectrum chief executive for

resources Tim Phelan



A novel transparent well simulator developed at UQ allows researchers to see what’s going on inside the well during testing. It is being used to trial a number of technologies for the onshore gas industry.

Speaking to Australasian Drilling, Centre director Professor Andrew

Garnett said his Centre wanted to work with a driller to gather data on drilling rig parameters in order to predict failures.

“We’d be very keen on talking to a drilling contractor about researching predictive maintenance or predictive analytics, because we know we’ve got the maths to do it and the right sensors,” he said.

Andrew said his Centre had done some work on two types of analytics projects with drill rigs and wanted to do further research.

The first was a drilling optimisation project that looked at existing, standard drilling data such as weight-on-bit, torque, strokes per minute et cetera.

“We’re talking about large amounts of data here that roll off the rig,” Andrew said.

“Here we were looking at ways to use the data to optimise drilling parameters per whole section drilled or per formation drilled. We’ve had quite a bit of success from a very large dataset that we got from an operator.”

The second type of project looked at drilling performance.

“Here we’ve been looking at prediction of lithologies from drilling data,” Andrew said. “The next thing we’re wanting to look at is, one, determination of rock properties and, two, prediction of insipient failures.”

Insipient failures are an imperfection in the state or condition of an item so that a degraded or critical failure might or might not eventually be the expected result if corrective actions are not taken.

using special sensors and algorithms Andrew’s Centre is now looking to collect data then analysing it to look for items that could soon fail, for example, if a top drive is going to fail in a few hours or a few days.

“We’re looking for data-driven predictive analytics,” Andrew said.

“Rotating equipment would probably be a good candidate for predictive

where we’d like to place instruments on a rig just to listen and see what the signals are in normal phase.”

“We’ve got a number of detectors on rigs anyway, but unfortunately people have forgotten precisely how they work or what they were actually measuring.”

The university of Queensland Centre for Coal Seam Gas, is a university-industry partnership between The university of Queensland, APLNG, Arrow Energy and Santos.

For more information, contact Andrew on 0437 991 802 or [email protected]

analytics or detection of insipient failures.”

“We’d very much like to talk to some drilling contractors, because we’ve got some ideas which are quite exploratory

drillers wanted for R&DThe university of Queensland’s Centre for Coal Seam Gas is keen to work with a driller in R&D on predictive maintenance. Jamie Wade writes.

Using special sensors and

algorithms Andrew’s Centre

is looking to collect data then

analysing it to look for items that

could soon fail, for example, if a top

drive is going to fail in a few hours

or days.



More than $387 million was paid to landholders as at June 2017. The industry also contributed $1.8 billion in royalties over forward estimates.

A ustralian Petroleum Production & Exploration Association director

external affairs, Matthew Doman, said Queensland’s industry continues to do the heavy lifting in the east coast gas market while other states refuse to produce the gas needed for their households and industry.

“The failure of NSW and Victoria to facilitate the development of their considerable onshore gas resources is putting strain on states which do support resource development,” Matthew told Australasian Drilling.

Matthew added that the ongoing threat of market intervention by government to divert gas from Queensland to southern states was a significant concern for industry.

Queensland’s coal seam gas (CSG) industry accounts for most of the gas produced in the east coast market for use in manufacturing, power supply, households, fertiliser, food processing, and plastics.

Queensland produced 1526 PJ of gas in 2017-18. This compares to 1851 PJ total gas consumed in the east coast market in 2017. The (CSG) industry contributes $9 billion in value added to the economy annually with 3100 Queensland businesses benefiting, mostly in regional areas.

More than 27,000 people are employed directly and indirectly in the industry that contributes $3.9 billion in wages and salaries each year. The industry also contributes more than 50 gigalitres of clean water to beneficial use each year. More than $387 million was paid to landholders as at June 2017. The industry also contributed $1.8 billion in royalties over forward estimates.

“Many of the industry’s workers are based in regional communities,” said Matthew. “Regional areas with petroleum and gas development have lower unemployment rates than the state average.”

“The industry supports and sponsors a variety of community programs in areas such as health and education.”

Matthew said the regulatory

do, how we do it and the benefits we deliver,” he said.

opposition

Groups such as Lock the Gate have been very active and vocal in their opposition to coal seam gas extraction and hydraulic fracturing, and Matthew said their position was ultimately aimed at shutting down all fossil fuel production activities.

“The group’s claims should be understood in that context, and it is notable that Lock the Gate has been forced to correct misleading statements on several occasions,” he said.

“Queensland’s gas industry has successfully worked alongside farmers and regional communities for many years. Most of the gas used on Australia’s east coast is coal seam gas.”

Matthew said the community’s attitudes to coal seam gas extraction were most supportive in the areas in which it operates and that support has been steady for several years.

“Concerns about hydraulic fracturing and production practices have declined significantly over time in Queensland and are now at a very low level,” he said.

“Accurate, accessible, and trusted information about how the industry operates has informed community perceptions and been a key driver of this shift.”

For more information, contact APPEA on (02) 6247 0960 or [email protected]

environment in the coal seam gas extraction industry in Queensland had improved following introduction of reforms to better align tenure requirements with operations. New dispute resolution mechanisms have also been introduced for land access.

Queensland has also established a socialised financial assurance fund, which will ensure taxpayers do not bear the cost of rehabilitation. While the fund was developed in response to concerns related to the mining industry, it also covers petroleum and gas.

“Queensland regulation has evolved over many years. While the state continues to have some of the most extensive regulatory requirements globally, some elements have been refined to better suit industry operations and/or community expectations,” Matthew said.

APPEA is maintaining a policy agenda focussed on ensuring access to resources, efficient and safe operations, and maintaining and improving the industry’s social license to operate, said Matthew.

“APPEA is also committed to building community understanding of what we

Southern states must lift their weight The gas industry’s peak body says governments in the southern states on the east coast should lift bans and moratoria, and get on with the job of environmental assessments and decision-making for gas projects. Jamie Wade writes.

More than 27,000 people are

employed directly and indirectly

in the industry that contributes

$3.9 billion in wages and salaries

each year.


SONIC DRILLING

Geoprobe’s 8150LS rig running a DT45 weighted wireline system. Sonic drilling has grown in popularity largely because it can be applied to a broad spectrum of applications. Photo courtesy of Geoprobe.

Sonic drilling is fast, safe, and can be utilised in a number of industries and

drilling applications, but its success also depends on good drill crews who know how to operate their equipment safe and efficiently.

That is the key message to drilling contractors from Geoprobe tools engineer manager, Mike Carlin.

“Sonic drilling has grown in popularity largely because it can be applied to a broad spectrum of applications,” he told Australasian Drilling.

“It can be successfully utilised in such a broad scope of drilling conditions – hard rock to soft sediments. This type of versatility has helped grow the industry to what it is now.”

“That said, there could be a learning curve for new sonic drillers as they learn how to operate sonic equipment in these various conditions and applications. It can be a rough honeymoon.”

In reflecting on recent trends and developments in sonic drill rig technology Mike highlighted three key drivers of change in rig design.

“Recently, there has been significant emphasis on engine emissions. This is starting to create some challenges for manufacturers and drilling contractors who have to comply with these emission standards,” he said.

“There have been deadlines tied to some of these emission standards which has created additional challenges for manufacturers and contractors. The time and resources required to meet these emission standards has left some companies struggling to keep up.”

Greater development of systems designed to minimise tool handling, Mike added, was another key driver.

“In some cases, “hands free” operations are required,” he said. “Obviously, this is in an effort to minimise injury to personnel required to handle the tooling during the course of operations. There are also more safe guards built into the controls of the rigs as well that help to minimise the risk of injury while using certain machine functions.”

rapid rate in an effort to add safeguards to sonic rigs. While these controls can add a level of complexity to rig design, it does yield a much safer working platform for the driller and operators.”

“Machine controls also can also speed up troubleshooting various issues on the rig. In some cases, the on-board diagnostics can point the driller or repair technician directly to the problem.”

Mike said the development of tooling racks and rod loaders, such as the Geoprobe indexing rack and integrated rod loader, did not require drillers or operators to constantly lift tooling as it is tripped in and out of the borehole.

“There is also some use of wireline sampling systems such as the Geoprobe weighted wireline system which can add significant efficiency on some drilling platforms and projects.”

demands

When it comes to sonic drilling rigs, Mike said, end users want options and versatility as well as good service and support.

“Companies which invest in sonic equipment want to utilise their equipment in multiple industries such as environmental, geotechnical, mining and geothermal. Increasingly, rigs have available options like drop hammers, coring heads, rod handlers et cetera.”

Sonic rigs and most modern drilling rigs, said Mike, have grown in complexity over the last decade.

“Control systems and even hydraulic systems today are not what they were 20 years ago. This has created a real need to provide service and support to sonic customers who need to minimise downtime,” he said.

“There are plenty of customers who still repair and maintain their sonic equipment internally, but there is a growing need to provide this type of service support, especially to customers with multiple rig operations.”

For more information, contact Mike at Geoprobe in the United States on +785-404-1105 or [email protected]

Rig diagnostics, Mike said, was also becoming more common.

“With modern technology, machine issues can be communicated to the driller right at the control panel. This is very helpful when troubleshooting the various issues that occur on any drilling rig,” he said.

“In some cases, the rig diagnostics can be accessed remotely by the manufacturer or service technician who can be thousands of miles away. This also adds an additional level of service and support to the driller and his crew.”

technology

In terms of how the latest sonic drilling rig technology can boost productivity, efficiency, environmental standards and safety, Mike said that Geoprobe had seen more efficient tool handling which has increased productivity while reducing injuries and fatigue on operators.

“This can be seen in some tool handling systems that are integrated into machine functions which allow for faster and safer handling of drill stems and tooling,” he said.

“Machine controls are advancing at a

New technology making sonic superTighter regulations on emissions and demand for safer systems and diagnostic capabilities are driving the new wave of sonic drilling rig technologies. Jamie Wade writes.


SONIC DRILLING

LargeRotoSonic EC sonic rig set up based on a CAT excavator allowing every type of inclination needed.

Huug Eijkelkamp, of the Royal Eijkelkamp Group – a company

specialising in products and turn key smart sensoring projects for water and soil applications – is emphatic about the benefits of sonic drilling rigs.

“If you have any difficult drilling business case, from drilling through steel, landfill, wood, rock and other obstructions, consider sonic drilling or sampling. This technology lets you think outside the box and have success,” he told Australasian Drilling.

Sonic technology has revolutionised drilling over the last 10 years in terms of commercial reliability, added Huug.

“With an installed base of over 500 sonic rigs, and with clients all over the globe working in mining, geotech, environmental, geo construction and other markets, we see greater market acceptance for the technology.”

In reflecting on the trends and developments in sonic drilling rig technology, Huug highlighted three main changes.

“Firstly, as sonic drilling is often done with telescoping and different casing diameters, there is 100 percent hands-off drill steel. We have several manipulators handling different diameters drill pipe and casing,” he said.

“The second key change is development of a sonic proof wire line system ‘SonicWireLine’ that we designed to avoid tripping time of the inner string. This system has been tested for an offshore submergible sonic rigs and will be commercially launched for onshore use.”

“The third is the expansion of sonic drilling rigs for geo-construction applications. We have designed several sonic rig series for construction drilling. These rigs have a smaller footprint with more power that makes drilling three to four times faster. The rigs are also cleaner and safer.”

Huug added that drillers were demanding more data from rigs and this was equally applicable to sonic drilling rigs.

“The trend worldwide is data. We see the same thing with sonic drilling,” he said.

et cetera to deliver the best results in drilling speed and sample quality.”

Huug highlighted a case where sonic drilling rig technology enhanced dam safety for a Dutch contractor.

The contractor assisted in the North of Sweden to map an earth dam 100m high.

Previous attempts to take a sample in the dam through boulders and glacial sediments were unsuccessful. However, using a sonic drill rig the contractor was able to sample through the dam with 6” core – a special dual wall core barrel – 30 metres into the solid rock below and install inclinometers, sensors et cetera in the rock and earth dam body.

For more information, contact Huug on T +31 313 880 291 or [email protected]

“We can provide our sonic rigs with monitoring while drilling systems which measure up to 12 parameters including g-force of the sonic resonance. This last parameter can be correlated into many other parameters such as hardness et cetera.”

“Our Eijkelkamp SonicSampDrill business is working on a new type sonic rig which will have an algorithm that will allow parameters such as sonic frequency, amplitude, rotary speed, bit pressure

The power and the passionPassion and an understanding of resonance and its limitations are keys to getting the most out of sonic drilling rigs, according to the director of a Dutch sonic drilling rig manufacturer. Jamie Wade writes.

“As sonic drilling is often done with

telescoping and different casing

diameters there is 100 percent

hands-off drill steel.”


SONIC DRILLING

Dodging a myriad of gas, water, telephone, sewer, fibre optics and other service lines in downtown Manhattan, New York USA, an SDC sonic drill was used to drill more than 200 freeze-holes as part of a subway system upgrade in New York.

As the developer and patent-holder of modern sonic drilling technology,

Canadian mechanical engineer and president of the Sonic Drill Corporation and Sonic Drilling Ltd, Ray Roussy, has been a pioneer.

In addition to numerous patents, he is also the patent holder for sonic geothermal loop installation and sonic-pile/sonic pile-anchor installations. With more than 35 years in the field, Ray has won four awards and thousands of dollars in prize money for his revolutionary sonic drilling technology.

In reflecting on the evolution of this relatively new technology, Ray said its adoption was growing.

“Each year more holes are being drilled using sonic technology. Around the world this field continues to expand as more machines are built and sold,” he told Australasian Drilling.

“We’re also seeing a slow resurgence of geothermal again, despite fluctuating natural gas prices. With more environmental consumer awareness, many builders and homeowners are looking for ways to reduce emissions or create net-zero buildings with geothermal being a large part of that.”

The technology, added Ray, continues to evolve.

“We are very close to perfecting the use of a sonic drill to install solar panel posts which reduces the installation time from one week to one day – a huge cost savings,” he said.

“We’ve also recently patented the sonic pile and sonic pile-anchor which offer some substantial seismic benefits along with other advantages in building construction.”

Looking further down the road, Ray anticipates the integration of artificial intelligence to automate some drilling applications and remove repetitive aspects.

The main benefit of sonic drilling technology, said Ray, is its speed.

“With sonic rigs in use around the world, the most positive feedback we received is the sonic drill’s blistering speed and its ability to drill through mixed soils and cobble without getting jammed up.

“When a single sonic rig was brought in, it was able to drill, case, loop and grout 23 geothermal holes in two weeks flat. It was a stunning result, but pretty typical for a sonic rig.”

For those looking to purchase a sonic rig for the first time, do your due diligence, Ray advised.

“Some rigs are twice as powerful and have the benefit of being fully developed over decades of field-testing and development,” he said.

“Ask for personal use testimonials before you invest in the technology to ensure that you have purchased the right rig.”

For more information, visit www.sonic-drill.com

Those capabilities are pretty big on any driller’s list,” he said.

“Sonic drilling technology offers the very unique ability to drill three to five times faster, depending, of course, on soil conditions,” he said.

“The technology also provides continuous, high-accuracy core samples to 100m and beyond, and operates without drilling mud. These factors allow projects to be completed faster and, with 70 percent less mess, site clean-up is cheaper and quicker.”

Sonic drilling technology, added Ray, has also proved itself in applications where environmental sensitivities were of concern.

“The sonic drill is often specifically requested in government contracts due to its non-intrusive abilities,” he said.

“Because vibrations from the drill bit are not transmitted very far, penetrations can occur into sensitive areas such as critical eco-systems, unstable terrain or vulnerable situations where traditional drilling would cause more harm or be impossible to complete. As such, it’s been used for projects such as dam remediation, nuclear site investigations and hazardous waste site reclamation.”

Ray said that, on many occasions, his company’s sonic rigs, were called in as “rescue rigs” to help save a project that has floundered, usually because of soil conditions.

In one typical example, three standard rigs had been working on a geothermal extension to the Langara community college in Vancouver, Canada – a project that subsequently won an award for sustainable construction.

“After nearly two months, the standard rigs had only drilled 18 holes in total due to ground conditions,” Ray said.

Meeting the need for speedRecognition of the speed and ability of sonic rigs to drill through mixed soils and cobble without jamming up is rapidly growing. Jamie Wade writes.

Langara college Geothermal extension

Conventional Rig Sonic Drill Rig

three rigs on site one rig on site

Two months drilling Two weeks drilling

18 holes installed 23 holes installed

1 hole per 10 days 1-2 holes per day


ENERGY - GEOTHERMAL

The project required drilling geothermal deep-rock wells at Otaniemi, Espoo Finland. INSET: Numa Patriot 185 & 125 hammers were used in drilling the deepest hole in Finland.

The geothermal project is part of a wide-scale effort in Finland to

reduce the reliance on fossil fuels by finding renewable sources. It is a critical effort fully embraced to move toward energy independence.

The project undertaken by Numa required the drilling of two holes to support a new geothermal plant.

upon completion of the project, one hole will be used to pump water down through the bedrock that will act like underground heat exchanges.

The heated water will be forced back up the second hole to a heat plant system on the surface to provide clean, environmentally-friendly energy at a fraction of the cost of fossil fuels. It is estimated the heat plant will produce up to 40 megawatts of geothermal heat, which is up to 10 percent of Espoo’s heating demand.

The geothermal project utilised multi-stage, telescopic drilling methods to reach the desired depths.

The first stage used Numa’s Patriot 185 hammer and 26” (660 mm) retained bits with PCD carbide to drill down to 274m.

The second stage used a 17.638” (448 mm) PCD bit to drill down to 2900m where the hole was cemented.

The third stage used a Numa Patriot 125 hammer specially fitted with fully retained PCD drill bits to ensure strict hole diameter was maintained throughout drilling.

Bit sizes from 12” to 12.500” (305 to 318 mm) were used in stage three until a depth of 4600m was achieved.

Overall, Numa’s DTH products delivered an average rate of penetration of 10 to 25 metres per hour and drilled up to 300m per day in the hardest rock formations in Finland up to 520MPa hardness.

It took Numa products only a few short months to reach the record-breaking depth which was estimated to take 70 percent less time than comparable deep hole drilling methods used in the past.

As with many deep hole drilling projects, keeping a consistent hole diameter and verticality were critically important.

For more information, contact Numa

vice president Dave Gorman in

Connecticut, USA on +404.216.3700 or

[email protected]

The project required Numa to design and manufacture many specialty drilling components including custom porting and adapters to facilitate proper air lift.

Special stabilisers were also provided by Numa to further promote verticality of drilling.

Numa President, Ralph Leonard said successful deep hole drilling had been the forte of Numa products for many years.

“Whether it is drilling to 5300m in West Texas or 4600m in Finland, Numa has the DTH technology, expertise and service to get the job done right,” he said.

New depths in geothermalA drilling technology provider has achieved great success in Otaniemi, Espoo Finland by drilling to 4600m in what is said to be the deepest hole drilled in Finland.

“The project required the design

and manufacture of many specialty

drilling components including

custom porting and adapters to

facilitate proper air lift.”

Application: geothermal deep-rock wells

Location: Otaniemi, Espoo Finland

Hammer: Numa Patriot 185 & 125 hammers

Bit: conventional DTH bits with PCD and retainers

Hole size: 656mm to 305mm

Depth: 4600m

Formation: granite up to 520 MPa hardness

Rig type: Hydraulic HerrenKnecht German Double with 418 Ton Pull Back


SKILLS

In an effort to combat the growing casualisation of the Australian

workforce, and the apparent job insecurity that goes with it, the Fair Work Commission – Australia’s national workplace relations tribunal – made some changes to a number of awards in October last year.

These changes could have a huge impact on the drilling industry, but you’d be forgiven for not knowing anything about them. Many HR professionals didn’t even hear about the changes until after they happened.

Several awards, including the Mining Industry Award 2010, now include a clause which lays out the rights of casual employees to request to be made permanent employees – part time or full time – after they have been working for 12 months on a ‘regular and systematic basis’ with a reasonable assumption that they will continue for at least 12 months.

This isn’t new in all awards. Industries such as construction have been operating this way for a long time.

What is new, however, is the requirement for employers to make employees aware of their rights within the first 12 months of employment.

By 1 January 2019, all casual employees who were employed on 1 October 2018 should have received advice from their employer about the right to convert from a casual to a permanent employee, including a copy of the relevant clause from the applicable Award.

Importantly, this applies to casual employees who don’t even qualify for this right (which has caused a lot of confusion).

If you employ casual workers and you didn’t know this you’d better get moving, because this is a legislative breach, which could result in penalties against your business of up to $63,000 and to ‘responsible individuals’, up to $12,600.

Although you must offer the ‘right to convert’ to casual employees, you also have the ‘right to refuse’ if you can prove in writing within 21 days that you have reasonable business grounds to refuse the request and consult with the employee regarding these reasons.

What constitutes ‘reasonable business grounds’ is open to much debate, but in short, you need to be able to prove your reasons are based on facts, which are known or reasonably foreseeable.

the pros

For employees, it means job security – anyone who has worked as a long-term casual knows the challenges it can bring with it – feeling like you need to go to work when you or your child is sick, the difficulty taking extended breaks without pay, the challenges of trying to secure a home loan or car loan – these all add up and cause significant financial (and relationship) stress.

Stressed employees become disengaged employees, their productivity goes down, their safety vigilance goes down, and your staff-retention goes down too.

For a casual who has been working regular, systematic hours, and reasonably expects to continue this job security could be an attractive option, even if it means losing 25 percent ‘casual loading’.

For businesses, it helps with workforce planning and budgeting – knowing your workforce is secure, loyal, and long-

term means you have a reliable source of human capital.

These employees become more valuable as they contribute in an engaged and committed way to the success of the business.

Your payroll remains reasonably static, and you can plan for short-term casuals to cover planned leave periods. It also means increased retention of company IP, site-specific experience, training costs and all the time and effort you put into upskilling a worker.

Additionally, casual workers are significantly more likely to be involved in workplace accidents, so maintaining a permanent workforce also means lower LTIs and insurance costs.

the cons

The most obvious change is that employers begin to accumulate leave liability – suddenly payroll processing, record keeping, and leave accrual management becomes significantly more complex, not to mention scheduling headaches now that workers can take annual leave.

Secondly, employers may try to make casual hours less systematic, so workers do not qualify for conversion to permanency, therefore, actually reducing job security of casual workers.

Thirdly, and quite importantly, these rules also apply to labour hire companies, which are especially vulnerable to this change. They cannot plan their workforce without knowing the future needs of every single client, so they understandably don’t want to be tied to a permanent workforce especially if it means paying out leave and redundancy pay.

As a reaction, labour hire companies may start simply terminating employees prior to the date they need to be offered permanency or even before

Big change to awards and casuals Changes to a number of industrial awards could have a huge impact on the drilling industry. Itch associate advisor people and culture Anne-Marie James writes for Australasian Drilling.

“What is new is the requirement

for employers to make

employees aware of their rights

within the first 12 months of

employment.”

SKILLS

the six-month mark, to avoid unfair dismissal claims. This is bad news for clients. It means all the training and IP a systematic casual worker has gained on client sites will be lost. That means more injuries, more training time, more strict supervision, lower productivity and less worker loyalty.

complexity

You may have heard about Workpac vs Skene, but if not, this is a legal case with massive risk implications for business, which rely on a regular and systematic casual workforce.

Skene worked FIFO for two years on a casual contract. His contract clearly stated that he was considered a casual worker, and that his hourly rate included ‘casual loading’.

upon termination Skene claimed that he was entitled to payout of notice and annual leave, and that he was in fact a permanent employee.

Skene won his case and an appeal because while his Enterprise Bargaining Agreement (EBA) classified him as a ‘casual’, it did not define what a ‘casual’ was, and even if it did, an EBA cannot negate the law.

There is no definition of a ‘casual’ in the Fair Work Act, or the modern award he was covered by, so ‘casual’ was defined under the well-established common law characteristics of a casual worker: there is no commitment; the work is unpredictable, irregular, intermittent and lacks continuity; and there is no certainty to the period of employment.

As a 7/7 FIFO worker for two years, with a roster that was 12 months ahead, Skene’s employment absolutely did not meet the criteria. Therefore, he was granted all permanent termination entitlements.

“But what about ‘casual loading’?” You ask…

Because the casual loading was merely mentioned in the EBA, and did not define the percentage, or what it was ‘in lieu’ of, it was ruled that the entitlements to be paid to Skene could not be offset by the paid casual loading.

What you can do

If you are a direct employer of long-term casuals, make sure you send every single

one of them notification of their right to convert to permanent employment if they meet the criteria and include a copy of the casual conversion clause in the relevant award.

If they were already an employee on 1 October 2018, you must send this now.

Going forward, you need to send this information to casuals within their first 12 months including anyone employed since 1 October 2018.

Make sure your payroll systems can manage permanent employees, so you can keep required records and manage entitlements. Note: many casual

employees are quite happy getting their 25 percent loading and have no intention of requesting permanency.

All casual employment contracts or EBAs must define exactly what is meant by ‘casual employment’. They also must include both the percentage of the hourly rate that is casual loading, and what this ‘in lieu’ of. If you don’t have employment contracts, now is the time to fix that!

Keep labour hire suppliers informed about expected project durations and workforce needs.

Your input may be needed to supply ‘reasonable business grounds’ to refuse a casual conversion or they could transfer the employee to you permanently.

Think about whether you are regularly losing good casuals who are employed via labour-hire within six months. They may be dodging obligations to offer permanent work and doing your business a disservice.

For more information, contact Anne-Marie on (08) 6140 1802 or [email protected]

By 1 January 2019, all casual employees employed on 1 October 2018 should have received advice from their employer about the right to convert from a casual to a permanent employee, including a copy of the relevant clause from the applicable award.

“If you are a direct-employer

of long-term casuals, make

sure you send every single one

of them notification of their

right to convert to permanent

employment if they meet the

criteria.”



PDC BITS

The PDC bit that combines the hardness and wear resistance of

diamond with the toughness and impact resistance of a tungsten carbide have almost made drag bits a thing of the past and almost put the tricone to bed.

They now outperform conventional bits in about 80 percent of formations.

The use of PDC bits is not just limited to conventional rotary bits. Their use is only limited by drillers’ and engineers’ imaginations and are used on core bits, underreamers, fiberglass casing cutters, shoe bits, reaming stabilisers, ream while drilling, bi-centre bits, hole openers and RC Bits.

Basically, PDC bits are designed to shear the ground, rather than crush or grind as with the tricone and other bits. They have no moving parts and are not subject to seal or bearing failures like tricone bits.

The PDC bit concept, with no moving parts, lends itself to being a tool suitable for reliable and economic refurbishment.

They perform best when the designed formation is married to the ground to be drilled similar to tricone bits, but with a different concept i.e. an 8 blade, 6mm cutter bit is not suitable for clay/shale and a 3 blade, 19mm cutter bit is not suitable for hard rock.

PDC bits exceed rate of penetration to other bits due to shearing versus crushing/grinding and overall extended life of bits.

PDC bits come in all sizes from 2 blade roofing bolt drill bits to 12 blade 24” bits and large diameter hole openers. As a general rule, the harder the ground, the more blades and the smaller the cutters. When drilling with large diameter bits and hole openers, lower RPM, proportional to the diameter is used as high peripheral speeds tend to burn the compacts on the outside diameter.

Well-made bits vary; how much you pay is related to the overall life of the bit.

PDC bits compare exceptionally well against all other bit types when used in the correct formation.

Maximising life

Drillers can maximise PDC bit life firstly by buying the bit best suited to the ground being drilled and, secondly, by ensuring adequate fluid (mud, foam or air) is used to clean the face of the bit with correct jet nozzle sizing to match the available fluid flow.

Drillers can encounter problems with PDC bits when there are changes in formations i.e. soft with hard bands. They can also run into problems from excessive weight and/or rotation speed that can cause the bit to bite too hard and possibly damage it. Some say that two-thirds the weight of the drill string is adequate on bit, as a guide.

Lack of stabilisation and too light a drill string can cause “stick slip” which is more common than realised. This happens when the bit is stalled momentarily.

The drill winds up and then released, causing the bit to run backwards at the face. None of this is obvious at the surface, but can be seen when the bit is inspected after use and the compacts have been loosened or pushed out of

Pre-heating 17 and-a-half PDC hole opener for tipping. Photo courtesy of Carbide Bit.

their Pockets -usually on the outer of the bit, as evidenced by the blurred edges of pockets being in the opposite direction of rotation.

Too high a rotational speed in hard ground can cause overheating and burnishing of the cutting edges, increasing the risk of composite failure.

Pending catastrophic failure, we find the majority of PDC bits can be refurbished from one to six times, if not overrun.

Before refurbishing, a PDC bit should be sandblasted, crack tested, thread inspected, gauge diameter checked and compact count suitable for re-use evaluated. If it is not written off by structural cracks, unrecoverable thread damage or unrecoverable gauge wear then the compact count to be replaced becomes the major cost.

For more information, contact Steve on (07) 3375 1167 or [email protected]

Drilling down on Pdc bits Call them Polycrystaline Diamond Compact (PDC) bits or PCD bits, but one thing is clear: this technology has been one of the most important advances for drilling in recent years. Steve Mellish of Carbide Bit highlights the benefits for Australasian Drilling.

“PDC bits compare exceptionally

well against all other bit types

when used in the correct

formation.”


PDC BITS

PCD bits may be robust, but must still be treated with caution and care,

advises Tru.

“If you are looking after your bits, they will perform better and you will have less cost per metre and lower refurbishment costs,” he said.

If sourcing PCD bits, said Tru, the price reflects quality.

“You get what you pay for,” he said.

In terms of the latest trends and developments in PCD bits, Tru said manufacturers were developing bits with greater flexibility and durability to drill through strata of various compositions, abrasiveness and hardness.

Tru emphasised the importance of choosing the right PCD bit.

“use high quality diamond tips, and look for PCD bits designed to optimise precise guided drilling, while maintaining the hole size and integrity.

“PCD bits may look similar but they come in many different shapes and sizes for specific applications, so choosing

the right tool for the job makes a big

difference.”

For more information, contact Justin or

Fernando at Asahi on (02) 9997 7033 or

[email protected]

PCD bits may look similar but they come in many different shapes and sizes for specific applications, so choosing the right tool for the job makes a big difference.

Bit selection and care Tru Nguyen of Asahi Diamond Industrial Australia reflects on the benefits, trends and developments in PCD (or PDC) bit technology for Australasian Drilling. Jamie Wade writes.

“PCD bits may look similar but

they come in many different

shapes and sizes.”

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Intersecting high-pressure zones (high-pressure water) and/or energy

sources (methane) while drilling can lead to equipment damage, lack of production and loss of life. These issues are particularly prevalent within the coal and gas fields of Queensland and New South Wales, but are also experienced throughout Australia.

The systems are most commonly used for both above and below ground diamond drilling for high-pressure water and when intersecting potential stored energy sources.

Within the oil and gas industry, full stack blow out preventers are commonly used to prevent blow outs or kicks. However, within the mineral drilling sector they can be very expensive and, in most cases, not suitable for rigs due to size restraints.

Annular diverters offer a cost-effective solution for safely diverting high-pressure zones and energy sources.

Although using an annular diverter system is the safest way to divert potential kicks, the driller and onsite personnel must be diligent and keep a close eye out for vital signs when a kick may occur.

Some of these signs include pit gains, pit losses, loss of water return and ejection of inner tubes.

Training and system familiarity are of the utmost importance when high- pressure/stored energy zones are expected.

Methane is a highly flammable gas and can be deadly.

Annular diverter systems and training can be tailored to suit each client’s individual requirements and to ensure the safety of all personnel onsite.

One important item of the system when coring is the wireline stripper.

When diamond drilling, the easiest escape route for stored pressure is normally up inside the rods.

The wireline stripper assists in slowly pumping down or bringing the inner tube to surface and also prevents the operator from pulling the tube too quickly, which may lead to hole swabbing or a kick.

An intersection of a methane pocket in WA in the early 2000s led to an ejected inner tube and subsequent rig fire. Luckily, no personnel were injured. After the incident an annular diverter system and training were put in place to prevent this type of incident reoccurring.

tiger annular diverter

In October 2018, Tiger Fluids expanded its product and service capability by acquiring the annular diverter product line. Tiger Fluids now sells, rents and stocks personalised systems and spare parts as well as doing in-house pressure testing and re-certification.

Our current diverter sizes are 4” and 5” and we are in the process of investigating the viability of introducing a 7” system.

Diverters are most commonly used in coal drilling and artesian waterwells to provide a safety shut-in or pressure divert function should high-pressure gas or fluids be encountered while drilling.

Diverter systems can be assembled to accommodate various types and size of casing connection which are made to order and may be accessorised with choke manifolds, choke lines, Guiberson

wireline strippers, Poor Boy degassers, stabbing valves and Kelly cocks etc.

All equipment is purchased or manufactured to order in Australia except for the bladders and other nitrile sealing rings that are bought as “Redress Kits” from Select Energy Systems in Canada, for whom Tiger Fluids are the exclusive distributor in the Asia Pacific region. This also expands Tiger Fluid’s capability to service small oil and gas drilling operations with a variety of downhole and in pipe pressure control equipment.

Our diverter workshop and warehouse are in Gatton, Queensland.

For more information, contact Rhys on 0417 601 100 or [email protected] or Chris Steel at Tiger Fluids on 0481 949 341 or [email protected]

Diverters a safe alternative to high pressure zonesAn alternative to blow out preventers can cost-effectively divert pressure from high-pressure zones and energy sources, according to Tiger Fluids Australia and PNG manager Rhys Clarke who writes for Australasian Drilling.

“Annular diverters are an

excellent method of ensuring the

safety of personnel onsite and

are easy to set up, lightweight,

robust and pressure rated to

3000PSI.”

Five-inch annulus diverter in use on site. Photo: Tiger Fluids.


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TRACK MOUNTED AND COMPACT

The 9410-VTR PowerProbe is a powerhouse. It can

come loaded with a winch, SPT hammer, direct push hammer, and auger

motor. The 9410-VTR’s hydraulic system is load

sensing allowing for better operating efficiency and

fuel economy.

The PowerProbe 9410-VTR does more than just direct push.


On show at the company’s stand was a portable solids pump – a

one-man vacuum loading, pressure discharge pump capable of recovering and transferring up to 10m3/hr @SG1.0 (44uSGPM) of almost any flowable material.

The pump generates up to 25”Hg+ of vacuum combined with high airflow, which allows the unit to transfer materials ranging from mining slurries and oil sludge through to cementitious powders and grains.

The pump is employed worldwide to service farms, mines, drill rigs, construction sites, process and power plants and many more.

The intrinsically safe and versatile pump uses 100 percent compressed air operation.

The unit has no internal moving components and is fully automatic.

It has a high vacuum and high airflow, and delivers up to 500m.

The pump has a high solids content transfer and is available in 316 stainless steel.

Other features include spillage recovery and transfer, sump cleaning and de-silting, tank bottoms and sludge extraction, pneumatic excavation, and dewatering.

For more information, contact Dynapumps on 08 9424 2000 or [email protected]

Dynapumps’ Giuseppe Scuderi [left] and Ricky Lucas [right] with Supavac global sales director Daniel De Groot showcasing the Supavac SV60V portable slurry pump at the Australasian Oil & Gas Exhibition & Conference (AOG 2019) in Perth in March. PHOTO: Jamie Wade.

Portable solids pump at AoG ADIA member Dynapumps was one of 250 exhibiting companies showcasing technology at the Australasian Oil & Gas Exhibition & Conference (AOG 2019) in Perth – Australia’s largest oil and gas event.


MEMBER NEWS

Premises and truck range expandedA Perth-based importer and distributor of heavy-duty off road vehicles has expanded its premises and is rolling out a new range of trucks with a look and feel more suited to on-road driving. Jamie Wade writes.

Offroad Trucks Australia (OTA), that imports and distributes the Czech-

made TATRA trucks, recently celebrated expansion of its Maddington premises with the grand opening of a new workshop.

General manager Amber Gaden said business at OTA had turned a corner.

“We’ve had one of the best years for quite a few and we can see the next year is going to be wonderful for us,” she said.

The expansion doubles OTA’s service capacity and will allow it to meet renewed demand in the market.

“Basically, we’d outgrown our facilities. We were bursting at the seams,” she told Australasian Drilling.

“With the expanded facilities we can put more mechanics on, have more pre-deliveries and increase spare parts inventory and facilities.”

“When we started the business we thought we’d never fill the premises. Here we are 15 years later and we’ve had to double capacity.”

Amber said OTA’s expanded premises and facilities meant it could also cater to increasing demand for custom designs and features from customers.

In line with the expansion, OTA is also rolling out a new generation of trucks – the Phoenix range – that build on TATRA’s renowned offroad toughness with new features designed to improve the on-road driving experience.

The new range is built on the TATRA chassis that gives the vehicle, and in particular its driveline, increased resistance to environmental effects. According to OTA, dirt, mud and sharp stones will not damage the drive shafts, and the protecting central backbone tube makes powertrain maintenance very simple and affordable.

Trucks in this range can reach 100kmph on road. They have a bigger engine – 460HP or 510HP – with a ZF AS Tronic semi-auto transmission and a DAF cab with greater comfort for the driver. The range has more of the features that

appeal to drivers such as Bluetooth, electric windows and central locking.

“Our current Phoenix range is a light air suspension configuration with 11.5 tonne rear axles,” Amber said.

“The range will expand in the coming years offering the heavier suspension and hub reduction as previously configured on the T815-7 and T815-2 models.”

The range also features newly developed PACCAR MX engines made by DAF Trucks N.V. whose technology has been proven in the united States in compliance with EPA 10 emission limits.

While OTA does not envisage the new range to become the main seller, it is a strategic move aimed at tapping into new markets.

“Many customers still prefer the tough ruggedness of the existing T815-2 and T815-7 models, but the new range means we can expand our offering to three models and hopefully have something suitable for everyone,” Amber said.

“We’re confident the new range will open doors to markets that limited our base models. Our hub reduction models were speed limited to 85km, so they weren’t particularly great for highway/road usage,” Amber said.

“With the new range we can now tap into markets such as logging, civil contracting, government and people that drive more on the highway than off road.”

An increase in the front axle weight limits in Australia, said Amber, has also opened up a whole new market for OTA.

“Main Roads WA recently announced that twin steer load sharing trucks fitted with 385 super single tyres can now have a 12 tonne limit. Previously it was 11 tonne,” she said.

Amber said OTA was equipped to stock 100 percent TATRA spare parts for the T815-2 and T815-7 models and the Phoenix range in its warehouses.

For more information, contact Amber at Offroad Trucks on 0438 945 303 or [email protected]

Offroad Trucks general manager Amber Gaden and staff alongside a new truck for McKay Drilling at an open day at Offroad Trucks’ expanded Maddington premises. Photo: Jamie Wade.



Considered the largest construction and mining machinery show in the world,

Bauma attracts over half a million people from over 200 countries.

This year’s Bauma is focusing on digitisation within the industry, as companies transition to the latest technologies to provide more actionable data.

Boart Longyear has introduced a number of geological data services and instrumentation over the last few years to complement its drilling services and products divisions.

One solution that is receiving much attention in the exploration industry is Boart Longyear’s innovative TruScan onsite core and chip scanning technology.

The technology is said to provide geologists with non-destructive, accurate, high-density elemental concentration data for same-day continuous analysis of drill core.

The solution was awarded the South Australian Premier’s Award for 2018 in the Mining Equipment, Technology, and Services (METS) sector for Excellence in Innovation: Productivity Improvement.

The technology can scan and photograph a full tray of core and provide geochemical data within 25 minutes of the core being brought out of the ground.

Normally, analysis involves collecting core on pallets, transporting it to the laboratory, and then the laboratory schedules the core for analysis. Once core analysis is complete, the results are returned to the geologist which can take days to months.

This new technology is being used in exploration activities in Australia and Canada with plans to roll out in other parts of the world. Boart Longyear offers TruScan as an independent service to mining clients or the technology can be bundled as a part of a drilling services agreement.

Core and chip scanner showcased Boart Longyear is showcasing a range of exploration solutions, including an innovative core and chip scanner, at the world’s largest construction machinery trade fair: Bauma 2019 in April. Jamie Wade writes.

South Australian Premier Steven Marshal [second from left] presents Boart Longyear’s Peter Kanck [left], Ry Zwadzki [second from right] and Shaun O’Brien with the Premier’s Award in the Mining Equipment, Technology, and Services (METS) sector for Excellence in Innovation: Productivity Improvement for Boart Longyear’s TruScan technology.

“The technology is said to

provide geologists with non-

destructive, accurate, high-

density elemental concentration

data for same-day continuous

analysis of drill core.”

The technology can scan and photograph a full tray of core and provide geochemical data within 25 minutes of the core being brought out of the ground.


MEMBER PROFILE

From humble beginnings in 1992 when Russell Parry established the

company, Adtech FRP has become widely recognised as driving the adoption of GRE as the standard in pipe for the oil and gas industry.

As a specialist contractor, the company now only provides casing and tubing made in GRE.

“Over the last 10 years many companies have moved away from steel, as the benefits of GRE has become acknowledged and accepted,” Adtech’s Denyl Jarden told Australasian Drilling.

“In the coal seam industry, we worked with government bodies where a decision was made that any coal zones that may be mined in the future would use GRE.”

Not only is GRE non-corrosive, it does not spark to create an ignition source. This makes it ideal for applications where there is the potential for machines to make contact with pipe when working through ground.

“It is also very simple to drill out if required. Relining of old steel bores has been a cost-effective solution,” Denyl said.

“Smaller diameter GRE can be run in the old bores and cemented in. The smaller diameter bore due to its Hazen-Williams flow factor provides similar flow capabilities to the original larger diameter steel.”

With its head office in Malaga and pipe yards in Bullsbrook, WA and Jondaryan, QLD, Adtech FRP – FRP short for Fibreglass Reinforced Plastic – had its

first order from the WA Water Corporation for pultruded FRP structures that Adtech made in to ladders, platforms and supplied grating.

“We are proud of the fact we are still dealing with the Water Corporation,” Denyl said.

“Adtech played a key role in introducing GRE to the oil and gas industry in Australia to solve their corrosion issues in production flowlines. It took time to develop and have clients work through test lines and examine product in service over the years. The result, however, was that companies like

Chevron decided to change all their production flowlines to GRE.”

Barrow Island has over 1700km of GRE pipe with much supplied and installed by Adtech.

During the course of developing clients Adtech came across the waterwell market.

“This led to the Water Corporation requesting GRE product for them to perform testing, collapse and burst et cetera,” Denyl said.

“The application of GRE tubing and casing became a standard installation by the Water Corporation. The non-corrosive benefits and smoothness of the bore provided significant cost efficiencies over the wells operating life.”

The outlook is bright for Adtech.

“The market has turned around over the last 12 months,” said Denyl.

“We are experiencing greater number of enquiries and level of business in Australia and Argentina.”

GRE pipe a game changer A Perth supplier instrumental to the early uptake of Glass Reinforced Epoxy (GRE) pipe in the oil and gas industry to solve corrosion and safety hazards is honing its niche. Jamie Wade writes.

With its head office in Malaga and pipe yards in Bullsbrook, WA and Jondaryan, QLD, Adtech FRP – FRP short for Fibreglass Reinforced Plastic – provides solutions to corrosion for the water, mining, oil and gas industry.

Barrow Island has over 1700km

of GRE pipe with much supplied

and installed by Adtech.

Glass Reinforced Epoxy (GRE) does not give off a spark to create an ignition source.


MEMBER PROFILE

Manufacturing at feaver pitchA Perth-based drilling tool manufacturer with a small but dedicated and loyal team has been quietly, yet diligently, serving the drilling industry for 30 years. Jamie Wade writes.

In a world becoming increasingly corporatised, it is refreshing to

encounter a business that still does things successfully the old-fashioned way: understanding individual customer needs and delivering.

Feaver Tools has been making tools for the drilling industry since Paul Feaver established it in 1989.

You will not find a website for Feaver Tools, or glossy brochures, but visit their Welshpool premises and you will meet an energetic and dedicated team busily making drilling consumables for RC and waterwell, DTH, dual rotary piping and casing.

General Manager and part owner Richard Stickland, who has been with the company since 2013, said the business has earned a reputation for product knowledge and delivering for its clients.

“Many businesses are run by people who just look at the figures with very little customer engagement,” he told Australasian Drilling.

“We keep it real. Most of the staff here have a trade background. I’m a fitter and turner by trade. We work hard and everyone goes out of their way to understand clients’ needs.”

“Many of our orders are at short notice with tight turnarounds, so you need experienced staff with a sense of urgency and the ability to work as a team. All our staff has some level of engagement with clients. It’s a relationship we believe is important to engender. We get our people to understand that a job is not just for such-and-such company or client; it’s for the person.”

Richard said the Feaver Tools’ team was unique, as many of the staff had varied backgrounds and experience in the drilling industry.

“Our people come from a range of backgrounds, from the oilfield, mining, waterwell, RC and dual rotary. Collectively, this knowledge and information counts for a lot,” Richard said.

“Between our leadership team and the senior tradesmen team we have a combined experience of over 150 years in the drilling industry.”

“I’ve got 36 years of experience in engineering including 24 years in the drilling industry. Our operations team comprises four staff and has combined experience of 63 years. We have senior tradesman that have worked with me in the drilling industry for many years, with 22 years, 18 years, 10 years, and others with eight to five years’ experience.”

“We don’t have a high turnover of staff. Once people come in, they normally stay. We try to keep it a very good team environment and get everybody involved.”

Contributing to the company’s success, added Richard, was a focus on continuous improvement to procedures and practices – especially around logistics.

“There is a clear structure here and everyone clearly understands their role,” he said.

“We now have a workshop manager, a receivals and dispatch manager, and leading hands in each section at the workshop. The business has grown from a small workshop to a structured team environment with key people.”

In reflecting on trends and developments in the drilling equipment that the company manufactures, Richard said products in the market 10 to 15 years ago would not stand up in today’s market.

“Products today have to be consistently high quality and durable,” he said.

“For example, back in the day people were changing air swivel seals weekly! Now we’re going up to 3,000 hours without having to change them.”

“At the end of the day it’s all about keeping drillers drilling.”

Feaver Tools employees 20 staff manufacturing a variety of drilling equipment at its Welshpool workshop with a combined workshop footprint of 2020 square metres.

For more information, contact Richard on (08) 9258 8571 or [email protected]

[R – L] Feaver Tools general manager Richard Stickland, workshop manager Jon Rue, receivals and despatch manager Terry Bowker and Sundara Moorthy who manages drafting and design. PHOTO: Jamie Wade.

“Drilling equipment today has to

be consistently high quality and

durable.”

- Feaver Tools general manager

Richard Stickland


NEW ZEALAND DRILLERS FEDERATION EXECUTIVE OFFICER’S REPORT

Ihave recently been involved with health and safety through my voluntary golf

administration.

Prior to this, it had been a few years since I had to deal with health and safety as a part of my job.

All the delightful acronyms have returned to my vocabulary, when I had been hoping not to have to deal with them again! However, a couple of cautionary tales have also come to light, and it seems timely to remind everyone to ensure all their procedures are up to date, being followed and are all signed off.

The first one concerns a golf club.

The club had good health and safety procedures including standard operating procedures (SOPs) for all their equipment, up to date hazard registers, a skills matrix and they held toolbox meetings, including risk assessments, for all the volunteers before each session.

On the day of the incident they had volunteers using a log splitter to work on felled trees.

They had two people loading the log splitter to avoid lifting injuries and another person operating it.

unfortunately, one of the volunteers crushed their finger which resulted in a partial amputation.

Worksafe investigated and the club applied for an enforceable undertaking rather than court proceedings.

(While an enforceable undertaking is an option, it must be applied for and is never offered).

The outcome was that, as the manufacturer’s operating procedures recommended one person only to operate and load, the club was found in breach. The total for the enforceable undertaking was estimated to cost upwards of $70,000.

This can be viewed at worksafe.govt.nz > Laws and Regulations > Enforceable undertakings.

The second incident regards contractors. An electrician was working inside a silo and was trapped when the farmer turned the auger on.

There were various breaches of the Health & Safety Act including working in confined spaces, no harnesses worn, no training or SOPs for the procedure and nothing to prevent the silo being turned on. Apparently, it is common practice to stand on grain in silos throughout the farming community, so harnesses were not worn.

Following the hearing the farmer was fined about $60,000, but the contracting firm whose employee was trapped was also fined around $40,000.

The contractor was found guilty of failing to take all practicable steps to ensure safety of its employees at work. This incident is a reminder that you are not only responsible for your employees – you are also responsible for contractors on your work sites. Not only do contractors and their staff need to be inducted, you have a responsibility to check that their health and safety procedures are up to date and cover any work conducted on your property.

According to the Worksafe website, “Each year our health and safety inspectors carry out 12,500 workplace assessments. These are proactive, planned visits and are not usually triggered by a report of serious harm or a health and safety complaint”.

Aside from making sure that all your employees get home safely from work each day, are you taking all the necessary steps in your business to ensure that everyone in the company understands their obligations under the new Health and Safety at Work Act?

under the members only section of nzdrillersfederation.co.nz we are intending to provide links to helpful information and also invite members to share any of their health and safety tips with other members.

For more information, contact Debbie on 03 6881 356 [email protected]

cautionary tales on safety

couNciLPRESIDENTMel Griffiths Mobile: 021 433 137 [email protected]

VICE PRESIDENTSam WoodfordMobile: 027 660 8484 [email protected]

EXECUTIVE OFFICERDebbie Lovett Phone: 03 6881 [email protected]

councillorsDale Preston Mobile: 027 447 0909 [email protected]

Iain Haycock Mobile: 021 730 574 [email protected]

Jeff Ashby Mobile: 021 705 111 [email protected]

Malcolm Clemence Mobile: 027 222 1587 [email protected]

Marcus Durrant Mobile: 027 448 0890 [email protected]

Mark de Goldi Mobile: 027 577 2006 [email protected]

Pip Buunk Mobile: 0274 240 108 [email protected]

Russell Baylis Mobile: 0274 424 417 [email protected]

Steve Faulkner Mobile: 027 730 9999 [email protected]

Steve Pilcher Mobile: 021 516 720 [email protected]

Tim Babbage Mobile: 027 470 0777 [email protected]

Tony LyonsMobile: 021 672 949 [email protected]

Zane Brown Mobile: 021 842 475 [email protected]

Debbie Lovett Executive Officer.


NEW ZEALAND DRILLERS FEDERATION PRESIDENT’S REPORT

“The NZDF council agreed to

donate to Givealittle.co.nz, a

page that was set up for the

victims and families.”

Mel GriffithsPresident

difficult time for New Zealand

At the time of writing, our country is in mourning for the 50 people killed in

New Zealand. This is a shocking tragedy that has hit our country hard, especially Christchurch.

So first, as the president of our federation, I give our deepest condolences to the family and friends of this tragedy.

The NZDF council agreed to donate to Givealittle.co.nz, a page that was set up for the victims and families.

At a time like this, it is hard to know what to do to help those who are grieving. As a New Zealand federation and organisation, we are part of our community and feel that this is the least we can do to help ease the pain of the Muslim community in our country.

All we can hope for is that this tradgedy is never repeated and that as a country we pull together to keep our communities safe and our country strong. Kia Kaha New Zealand.

With regards to council work, we are working towards a non-hydrocarbon drilling rig audit check sheet that we will be proposing to submit to Worksafe to enable appropriate checks of drill rigs and sites.

On occasion, Worksafe has been using hydrocarbon audit check sheets that mainly deal with the oil and gas industry, and this has proven to be a difficult process for some of our members. Once we have a draft check sheet, we will circulate to our membership for comment. This should be out before you read this article or not long after.

The NZDF is also proposing to send a letter out to stakeholders that use our members’ services that outlines our drilling registration process established in July 2015. At present there is about 80 personnel registered under this scheme.

The purpose is to provide recognition of a visible and evidenced career

path for current personnel and future generations. It brings a co-ordinated and consistent approach to identify the mix of skills, experience, training and qualifications within the industry.

Once this is in place a list of drilling companies with registered personnel will be available on nzdrillersfederation.co.nz > Find a driller. Then, by selecting

the tick box for ‘Registered Driller’ site visitors will be able to see the companies that have registered drillers. This will enable a transparent way for clients to gain some further confidence in our members’ training, abilities and competency.

We will be discussing these topics and many more at our next council meeting.

If members want to bring an issue or detail to the Council’s attention please do not hesitate to let Debbie Lovett know at [email protected] and we will always add this to the list of agenda items.

Keep safe.

For more information, contact Mel at NZDF on 0421 433 137 or [email protected]

Council is working towards a non-hydrocarbon drilling rig audit check sheet that will be proposed to WorkSafe New Zealand.


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QUIET INDUSTRY ACHIEVER

From offsiding on a Longyear 38 with the Queensland Department of Mines

in 1974, to managing drilling for Lucas Drilling today, Peter Pacey has seen many changes. He reflects on his career for Australasian Drilling as the quiet industry achiever for this edition.

Ad: Who taught you the ropes?

PP: My driller was Bill Slattery and my supervisor was Ned Johnston.

Ad: How have you steered and developed the projects or teams in which you’ve been involved?

PP: It was the era when the Warman top drive rigs came out, and working with Hans Gruger, John Ackland and crew to make them the greatest coring rig.

The Warman, of course, has evolved to the Sandvik 880.

Ad: What unique or difficult jobs have you completed?

PP: The biggest challenge I faced in the drilling business while I was working for Tom Browne of Pontil Drilling operating the angled diamond directional drill pilot and then hole opening them with a hammer. The Mt Isa area is hard, tough ground and faulted in some areas.

Ad: Who are the interesting characters that have made an impression on you while working in the industry?

PP: Col Koonsey and Fang Holdcroft come to mind, but there are a thousand good people out there that I can say have helped me along the way.

Ad: Looking back on your career, what are you most proud of? - What has been your greatest achievement?

PP: The proud moments usually came after pulling off a difficult fishing job (mostly caused by Kiwi drillers). One of my achievements has been to sort the truth from the bull***t some drillers say when things down hole have not ended up as planned.

Ad: What do you see as the most significant changes in the drilling industry during your career?

PP: High pressure air, impregnated coring bits, top drive diamond drills and hands-free rod handling. Improvements to the safety culture of drilling teams have been a huge change.

Ad: What’s been your relationship with AdiA and its previous body? What benefit has membership provided to you?

PP: Attending the ADIA meetings are a great opportunity to engage with people in the industry and old mates. Reading Australasian Drilling magazine has kept me informed about the latest drilling technology.

Ad: What do you think are the opportunities for change in the industry in the next five years?

Rig hands-free operation is progressing quite well. More rig builders will need to take up the challenge.

To get in contact Peter on 0427 203 428 or email [email protected]

Keeping it real: Peter Pacey

In a career spanning five decades Lucas drilling manager Peter Pacey has covered - and drilled - much ground.

“Rig hands free operation is

progressing quite well. More rig

builders will need to take up the

challenge.”

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