Fracking company’s shareholder prospectus referred to ASX and ASIC over glaring omissions

Published: November 24, 2021

Lock The Gate Alliance has referred concerns over serious inaccuracies contained in Black Mountain Energy’s recently published share prospectus to the ASX and ASIC. 

Black Mountain, a Texas-headquartered fracking company, is raising capital via the Australian Stock Exchange to fund works associated with its planned Valhalla fracking project near Fitzroy Crossing in the Kimberley.

The company has also said it wants to build a pipeline from the Valhalla area to the Pilbara for export. LTGA fears such a move could lead to significant areas of the Kimberley being opened up for gas fracking fields.

Lock The Gate WA campaign coordinator Claire McKinnon said the group believed the document contained serious errors and omissions.

“We’ve raised our concerns with the ASX and ASIC because would-be investors need to be properly informed about Black Mountain and its plans for the Kimberley.

“We have identified six areas where we believe Black Mountain may not have provided accurate or adequate information for would-be investors: previous failed attempts; problems with existing frack wells; Native Title agreements; changing regulatory environment; export assurances; and, greenhouse gas emissions.

“There has been a long line of overseas-controlled companies that have talked up fracking prospects in the Kimberley, only to then abandon their plans. Therefore, we think it is crucial that the ASX and ASIC take a very close look at what Black Mountain is suggesting.”

Since 2010, PetroChina, ConocoPhillips, Mitsubishi, New Standard Energy, and Alcoa all bought into the Kimberley and then departed with no project success. 

Ms McKinnon said, “Black Mountain, like its predecessors, faces enormous challenges in the Kimberley and should depart the region. The company faces strong community opposition based on an understanding of the region’s globally-significant natural and cultural heritage values and a high level of awareness of the havoc a gas fracking industry would cause across the region.

“Companies like Black Mountain, if they want to make a positive contribution to the region, should be working with local communities to develop environmentally responsible, socially just, and sustainable solutions to the region’s energy and other needs. It might come as a shock to Black Mountain, but fracking is neither environmentally sustainable nor socially just.”

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  • Dom Geiger
    published this page in Media Releases 2021-11-24 13:09:30 +1100

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