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Queensland Awards Senex Acreage in the Surat and Bowen Basins

Source: 9/21/2020, Location: Not categorized

Senex Energy has been awarded preferred tenderer status for natural gas acreage in the Surat and Bowen basins as part of the Queensland Government’s domestic gas acreage tender process. The award includes additional highly valuable Atlas acreage immediately adjacent to Senex’s existing development, and high-potential exploration acreage in the Bowen Basin on trend with the Scotia and Meridian gas fields.

Senex’s established hub-and-spoke infrastructure modeland demonstrated expertise in the efficient development of natural gas resourcesprovide a unique opportunity to support Australia’s gas-fired recovery from the COVID-19 recession.

Key highlights

- New Atlas acreage will enable rapid expansion of natural gas production to ~18 PJ/year, an increase of 50%

- New Atlas acreage development-ready, subject to project approvals,with immediate gas reserves booking upon grant of title: 1P reserve adds of 16 PJ, 2P reserve adds of 41 PJ and 3P reserve adds of 58 PJ

- Agreement in place with Jemena to expand the Atlas gas processing facility by 50% to 48 TJ/day sales gas

- Development drilling for expansion of production to be funded through free cashflow and existing debt facilities

- High-potential Bowen Basin acreage located on trend between the Scotia and Meridian gas fields, providing further scale and diversification to Senex’s natural gas portfolio

Managing Director and Chief Executive Officer, Ian Davies said that Senex is uniquely positioned to contribute to Australia’s gas-fired recovery from the COVID-19 recession.

'Senex is a material new entrant in a strong domestic market with high barriers to entry. We are increasing the supply of natural gas on the east coast to help our manufacturing sector, and we are here for the long term.

'The Queensland Government’s award of acreage to Senex strengthens our ability to leverage our established hub-and-spoke infrastructure model for accelerated supply of affordable natural gas to the domestic market.

'Senex is committed to investing for the long-term to unlock both development-ready and exploration opportunities. We welcome the proactive policies in place to encourage development of Australia’s vast natural gas resources, which will help deliver affordable and sustainable gas supply,' Mr Davies said.

Additional Atlas acreage (PLR2020-1-13)

The award of additional Atlas acreage enhances Senex’s existing development. The contiguous block is bounded by prolific gas producing acreage, with resource quality and reservoir performance expected to be high-quality and consistent with that of Atlas.

The commercialisation plan to expand Atlas gas production by 50% to ~18 PJ/year will leverage Senex’s existing hub-and-spoke infrastructure model:

- Existing Jemena gas processing facility to be expanded; availability for additional production volumes expected in the first half of 2022, subject to completion of definitive agreements with Jemena

- Existing Senex water management infrastructure to be utilised

- Development drilling for expansion of production to be funded by free cashflow and existing debt facilities

- Ongoing marketing of gas to Queensland manufacturers and other domestic users, providing further support for Australia’s gas-fired recovery from the COVID-19 recession

Bowen Basin natural gas exploration acreage(PLR2020-1-9)

Senex has been awarded preferred tenderer status for the 486 sq km natural gas exploration block PLR2020-1-9, located on trend between the Scotia and Meridian gas fields in the Bowen Basinand close to existing infrastructure.

The Bowen Basin comprises successful producing gas developments including the Fairview, Arcadia, Peat, Scotia, Meridian and Moranbah fields. PLR2020-1-9 overlies a large regional fault system extending through to the Scotia and Peat fields, providing potential for high permeability and gas content.

Senex will undertake an initial four-year work program comprising geological studies, 2D seismic acquisition and an exploration well. Senex’s application for this acreage was submitted based on study results indicating potential for analogous development to the Scotia gas field.

A growing and diversified gas supply portfolio in the Surat and Bowen basins

Senex is building a gas supply portfolio of scale and diversification. Senex’s natural gas footprint in Queensland now comprises ~2,300 sq km of acreage across the Surat and Bowen basins, and includes material production (Roma Northand Atlas), development-ready expansions (Roma Northand Atlas) and appraisal and exploration opportunities (Western Surat Acreage, Project Artemis andthe newly awarded Bowen Basin acreage).

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