Strategic rationale: Realising the near-term potential of the Australian east coast gas market.
Senex is one of the few independent companies investing in greenfield gas developments to meet the opportunity in the east coast market. We are leveraging our strategic position as an agile, independent and low-cost operator to bring new gas supply into the market.
Senex holds around 2,000 square kilometres of gas acreage in the Surat Basin, a prolific onshore energy-producing region of Australia’s east coast. Senex has estimated proved plus probable (2P) gas reserves of 615 petajoules at 30 June 2018. The company is focused on progressing its key gas projects in the Surat, including the Western Surat Gas Project north of Roma and Project Atlas near Wandoan and Miles.
Project Atlas is a 58 square kilometre block of natural gas acreage in Queensland’s Surat Basin to be developed for the Australian domestic gas market. The high quality acreage currently holds 144 petajoules of 2P reserves to be developed through approximately 100 wells and a Jemena owned 32 terajoules per day firm gas processing facility and 60 kilometre pipeline. The gas will be delivered to the Wallumbilla hub with first gas targeted for 2019.
The Western Surat Gas Project comprises approximately 840 square kilometres of natural gas acreage in Queensland’s Surat Basin. Senex has reported 395 petajoules of 2P reserves within the acreage, which will be developed over multiple phases. The initial phase will be developed through a 16 terajoule per day gas processing facility tied in to the GLNG infrastructure. Gas will be sold to GLNG under a 20-year agreement with first sales gas volumes targeted for 2019.
Senex holds conventional and unconventional acreage in the South Australian Cooper Basin.
in the northern Cooper Basin, Senex is producing gas from its Vanessa gas field, brought online in July 2018. We are delivering gas for use at the Pelican Point Power Station; a significant generator of electricity to the South Australian market.
The Gemba-1 gas exploration well is located on the south-west margin of the Allunga Trough, approximately 37 kilometres south wet of the Moomba Oil and Gas Processing Facility. Designed to evaluate the gas potential of the low permeability intra-Patchawarra sandstones, the well successfully intersected gas in the target zones with volumes ahead of pre-drill expectations. The well was extended given encouraging gas shows in the Dullingari group, representing a potential new gas play.
Senex continues to see significant prospectivity in its Cooper Basin unconventional gas acreage given the opportunities that exist for new long-term supply into the east coast gas market. In April 2018 Senex saw an opportunity to simplify the business, shifting focus with our joint venture partner Beach Energy from an unconventional gas exploration project to our productive western flank oil permits. As part of this agreement, Beach’s committment to free-carry Senex for up to $43 million of work has transferred to the mutually-owned Senex-operated Cooper Basin western flank oil assets where it will be deployed over the next year. Senex and Beach completed the agreement in late FY18, giving us the flexibility to progress the longer-dated unconventional gas opportunity in the future.