Why invest in short term, risky fossil fuel industries when so many sustainable options based on the Kimberley’s unique cultural and environmental values are available?
Buru Energy’s plans to frack for gas in the Canning Basin risk damaging the Kimberley’s heritage listed values, according to an investor alert released today by the Australian Conservation Foundation.
The ACF alert also raises issues about community opposition to the plans, Buru Energy’s financial viability and the integrity of engineering at other Buru operations.
Buru Energy has been looking into the feasibility of fracking for gas in the South Kimberley’s Canning Basin since the company demerged from ARC Energy in 2008.
“Buru’s plans for hydraulic fracking in the Canning Basin have the potential to cause serious damage to underground water, local communities and the world famous nature of this area,” said ACF’s Kimberley Project Officer, Wade Freeman.
“One of Buru’s exploration permits covers the Broome aquifer, an area of floodplains and lakes that feeds Broome’s only drinking water source.
“ACF is concerned Buru’s fracking plans present a genuine threat to the health of the Fitzroy River and Roebuck Bay.
“Why invest in short term, risky fossil fuel industries when so many sustainable options based on the Kimberley’s unique cultural and environmental values are available?”
ACF will send the alert to investment firms, fund managers and individual shareholders.
“There are serious risks associated with this project – for the environment and for investors,” said ACF’s Economist Matthew Rose.
“How will post-Paris changes in climate policy, the concerns of Traditional Owners and the potential impact on the National Heritage listed values of the region increase the risk and the viability of this project and will Buru be able to protect the interests of shareholders and stakeholders by managing these risks?”
“Buru Energy’s 30 June 2016 Quarterly Report shows the company’s estimated cash inflows for the next quarter are $9.5 million for the sale of a pastoral lease asset and $5.8 million from government tax concessions.
“What is the future of an oil and gas company that relies on selling beef and drawing big tax concessions from the public purse in order to remain viable?”