AWE seeks to quell fracking concerns

Oil and gas producer AWE says it has several regulatory hurdles to clear before getting the go-ahead to "frack" its Perth Basin shale gas assets.

The plan comes amid mounting public concern about the use of fracking and its effect on groundwater.

Fracking involves pumping liquids into underground shale seams to fracture the rock and liberate the gas.

Western Australia's Environmental Protection Authority advised AWE on Monday that it did not need to assess the company's application for hydraulic fracture stimulation on its onshore Arrowsmith-2 shale gas play near the town of Dongara.

"However, we believe there are quite a few steps to go through before we can confidently say we've got our foot on the consent to go ahead with the fracking activity," AWE chief operating officer Dennis Washer told the RIU Good Oil conference in Fremantle, WA on Tuesday.

The practice was banned in Queensland last year after traces of chemicals including the carcinogen benzene were found in bores at coal seam gas projects.

AWE says its fracture stimulations mainly use water and sand, with only minor chemical additives.

Washer acknowledged the company had much work to do convincing farmers, who were concerned about damage to aquifers, that fracking could be safe in the hands of a responsible operator.

There is a lot of resistance to fracking in New Zealand where the company produces oil from the Tui field.

In WA, the company hopes a forthcoming assessment of its Arrowsmith-2 plans by an independent water expert to provide assurances to the community.

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