The Western Australia Environmental Protection Authority (EPA) released its report and recommendations for the Valhalla Gas Exploration and Appraisal Program on January 20, 2026.
Appeals against the EPA’s findings are now open until February 10, 2026, providing stakeholders an opportunity to challenge the recommendations.
Bennett Resources Pty Ltd, a subsidiary of Black Mountain Energy, proposes unconventional exploration drilling and hydraulic fracture stimulation within Petroleum Exploration Permit EP 371 in the Shire of Derby, West Kimberley.
Located 123 kilometres southeast of Derby in the Canning Basin, a region with prior petroleum surveys, the project targets hydrocarbons in the Laurel Formation at depths of 2,000 to 4,000 metres below ground level.
It involves constructing up to 20 wells, creating an overall disturbance footprint of 112 hectares under EPA Assessment Number 2281.
Referred under Section 38 of the Environmental Protection Act 1986, the proposal entered public environmental review in August 2024, followed by proponent responses to submissions in November 2025.
The EPA’s report, published after this review, recommends the project proceed with conditions to manage environmental risks, including groundwater protection and monitoring programs.
EPA Chair Darren Walsh stated: “We are satisfied that, based on the information and expert advice we have considered during this assessment, that any associated risks to the environment remain low, and that the conditions we have recommended, along with those imposed under other regulatory processes, would ensure that any unforeseen or unpredicted impacts will be identified early in the process and avoided.”
The EPA advises safeguards such as pre-drilling approvals for environmental programs and adherence to strengthened regulatory frameworks for fracking exploration.
It also suggests a regional environmental assessment if Canning Basin petroleum activities expand, to address cumulative impacts.
WA Premier Roger Cook emphasised that the recommendation applies specifically to Valhalla and does not signal broad fracking approval in the Kimberley.
Environmental groups like Environs Kimberley expressed shock, urging rejection to prevent ecosystem and water risks, while Bunuba traditional owner Millie Hills called for a fracking ban in sensitive catchments.
Black Mountain Energy’s executive chairman Rhett Bennett welcomed the outcome as validation of the project’s resilience and resource potential.
Industry representatives, including the Chamber of Minerals and Energy WA, highlighted gas’s role in energy security and jobs.
The appeals period closes on Tuesday, February 10, 2026, after which Environment Minister Matthew Swinbourne will decide on approval.
