Strategic rationale: geographic and product diversification, and strong near term market opportunity.
In 2014 Senex expanded its portfolio in the Surat Basin through an asset swap with the QGC JV, for no cash consideration, acquiring permits adjacent to its existing permits held in joint venture with Arrow Energy. The company’s total acreage position spans approximately 2,000 square kilometres in the western area of the Surat Basin.
The acquired permits from the QGC JV form the basis of Senex’s Western Surat Gas Project (the Project). In September 2015, Senex announced transformational agreements with GLNG, delivering a commercialisation and financing pathway for the Project.
Senex delivered the first pilot for the Project in November 2016, in line with its project schedule, and appraisal testing of these wells is under way. In February 2017, Senex established a strategic relationship with EIG Global Energy Partners including development funding for Western Surat Gas Project acceleration. Senex also sanctioned its first major investment in the Western Surat Gas Project, committing $50 million to a 30 well drilling campaign, with gas production of around 10 TJ/day (~0.6 mmboe p.a.) expected by mid-2018.
At 30 June 2016, Senex recorded proved plus probable (2P) gas reserves of 427 petajoules in the Surat Basin. Read the Senex 2016 Reserves Statement.