CONCERNED residents are on edge after the resumption of Coal Seam Gas (CSG) exploration drilling in the Scenic Rim.

But mining company Arrow Energy has said the drilling does not indicate they are about to begin production.

Arrow Energy started exploration drilling on Nindooinbah Estate Road, Kerry last week.

Kerry dairy farmer Sally Undery came across Arrow workers setting up a drilling site on Nindooinbah Estate Road last Wednesday.

Ms Undery said Arrow Energy staff were polite and courteous and explained what they were doing.

“They said they were coring, and I asked them if they were upgrading the well from an appraisal well,” she said.

“They said ‘yes we’re developing it’.”

Ms Undery said workers told her they were working out where the seam was so they could build the well.

She said the workers already knew there was gas there but they were not extracting gas yet.

“But I imagine the next stage would be a production well,” Ms Undery said.

“That is definitely my fear.”

Arrow Energy vice president for exploration Tony Knight confirmed exploration drilling was taking place near Beaudesert, and said it was part of a group of four exploration wells Arrow Energy was drilling across the region in the “near future”.

Mr Knight said the work was nothing new, as low level, broad scale exploration had been carried out since 1998 and 1999, when exploration permits ATP 641 and ATP 644 were granted in the area.

“This work has mainly involved taking core samples from coal seams to test gas quantity and quality,” he said.

“To date, we have drilled around 40 wells, comprising mostly exploration wells, with a few pilot wells.”

Mr Knight said all wells drilled to date were of an exploratory nature, were not used for commercial gas production and did not indicate that Arrow Energy was about to begin production.

Arrow has about 40 voluntary land access and compensation agreements with landholders across the region.

Mr Knight said while Arrow’s current focus was on its gas producing projects in the Surat and Bowen Basins, the company planned to continue its “low intensity” exploration in the Scenic Rim.

Arrow Energy plans to hold a community information session in Beaudesert before the end of the year.