Senex awarded acreage for domestic gas supply

Senex Energy has been awarded 58sq km of Surat Basin coal seam gas acreage, near Miles, for Australian domestic gas supply.

The company announced it had been successful in the Queensland Government’s competitive domestic gas acreage tender today.

First gas is targeted for 2019 with estimated P50 recoverable gas volumes of 201 petajoules (PJ) and around 100 well locations proposed.

Senex managing director and CEO Ian Davies said the company welcomed the opportunity to be part of the solution in delivering new gas supply to domestic customers on the east coast of Australia.

“Senex applauds the proactive steps taken by the Queensland Government to increase the supply of gas for Australia’s east coast,” Mr Davies said.

“With extensive experience and a proven track record, Senex has been entrusted to deliver this important energy resource to market.

“We plan to engage with domestic gas customers in early 2018 with a view to signing gas supply contracts, with first gas targeted for 2019.

“This award enables Senex to materially expand its gas business while delivering energy security to domestic customers and opportunities for the local community.

“This clear example of our gas strategy in action will create jobs for Queenslanders and value for our shareholders.”

Minister for Natural Resources and Mines Dr Anthony Lynham said he was pleased to see Senex secure the rights to supply such a critical resource for our market.

“This tender was a pilot using for the first time provisions of resources legislation to direct gas to the domestic market,” he said.

“The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already underway.

“Around 150 jobs are expected to be created and Senex expects to invest over $200 million on wells and infrastructure over the project’s life.”

Dr Lynham said following the success of this tender process, a second tendering opportunity would shortly be announced for two areas north of Surat in the Bowen and Surat basins.

Senex must now negotiate land access agreements and fulfill all existing environmental and Native Title requirements before the Petroleum Lease is granted and work can begin.

The company is expected to obtain regulatory approvals over the acreage in mid-2018.