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Senex Energy (ASX:SXY) completes $400M Surat Basin development project

Energy
ASX:SXY
10 June 2020 10:00 (AEDT)
Senex Energy (ASX:SXY) - Managing Director & CEO, Ian Davies

Source: Senex Energy

Senex Energy (SXY) has completed its 80-well drilling program at its Surat Basin natural gas development project in Queensland.

The gas explorer has also successfully built and commissioned natural gas facilities at Roma North and Atlas. Significantly, these projects deliver a greenfield gas processing infrastructure capacity of more than 20 petajoules (PJ) a year.

“We are proud to have worked closely with our partners Jemena and Easternwell, landholders, community and other stakeholders to successfully develop these critical natural gas resources for the east coast market,” Managing Director and CEO Ian Davies said.

“Further, we are appreciative of the strong policy settings of successive Queensland Governments, enabling the development of these valuable resources,” Ian added.

In October 2018, Senex reached a final investment decision for this $400 million program. The Roma North and Atlas projects were developed to meet the energy challenges faced on Australia’s east coast.

Less than two years later, Roma North and Atlas have been successfully delivered, with Atlas being crowned Australia’s first dedicated domestic gas acreage.

Further, Roma North has consistently exceeded capacity expectations by producing around 18 terajoules per day (TJ/day). Atlas production has exceeded 15 TJ/day and continues to increase towards nameplate capacity of 32 TJ/day.

“With proved and probable (2P) natural gas reserves in excess of 600 PJ across our Surat Basin acreage, Senex will be delivering natural gas to the domestic market for decades to come,” he stated.

Initial water treatment facilities at Atlas have now been commissioned and final construction is expected to be completed in the second half of this year.

Company shares are trading flat at 27.5 cents each in early morning trade.

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