Feb 21, 2017

Green light for $50m gas investment

Green light for $50m gas investment

Senex Energy plans to spend $50 million on its Western Surat Gas Project this year as it commits to a 30-well drilling campaign, with gas production of around 10 TJ/day expected by mid-2018.

Senex managing director and chief executive officer Ian Davies said the work program would result in significant gas volumes from drill ready acreage, and the company had a clear strategy for project acceleration.

“We have seen immediate gas to surface from the Glenora pilot wells, brought online for continuous production in early February. We have also seen evidence of strong gas flows from wells on the Eos block during rehabilitation works being undertaken on legacy QGC wells.

“These results demonstrate that coal seams in the Glenora and Eos blocks have already been partially dewatered by neighbouring operations.”

The sanctioned work program announced today would further the company’s understanding of the resource to support an accelerated project timeline, with potential to drill, complete and connect another 30 to 50 wells throughout 2018, he said.

“Under this scenario and subject to regulatory approvals, Senex can seamlessly transition to a development phase targeting gas production of over 16 TJ/day by 2019, equivalent to one million barrels of oil equivalent per annum,” Mr Davies said.

The Glenora and Eos blocks are located in the south-east of the Western Surat Gas Project, directly north of GLNG’s producing Roma field.

A pipeline from the Glenora pilot to the GLNG low pressure gathering network was constructed during 2016.

Queensland Resources Council chief executive Ian Macfarlane said today’s Senex Energy announcement was yet another sign that Queensland was getting on with business.

“This flagship project will create up to 100 jobs in the region, which is good news for the local community, and also has the potential to be good news for Queensland gas supply,” Mr Macfarlane said.

“The QRC is pleased that Queensland is leading the way when it comes to working to address the problem of the east coast gas shortage.”