Senex Energy Brings Western Surat Gas Project Wells Online

Senex Energy Limited (ASX:SXY) today announced it has brought the first of 30 appraisal wells online as part of its Phase 2 investment program on the Western Surat Gas Project.

The Phase 2 program is Senex’s first major investment in the Western Surat Gas Project, and involves the drilling of 30 appraisal wells on the Eos and Glenora blocks, located approximately 30 kilometres from Roma and directly north of GLNG’s producing Roma field.

Of the 30 wells in the Phase 2 program, 24 have been drilled, with the remainder to be completed in the coming months. Senex has brought the first pod of Phase 2 wells online, with all 30 wells to be producing by the end of calendar year 2017. Senex expects production from the Phase 2 wells to conform to the typical profile of coal seam gas wells, with dewatering to precede a steady increase in gas production rates. Senex is working to progress a raw gas sales agreement with GLNG for delivery of Phase 2 gas into existing Roma field infrastructure.

Senex Managing Director and CEO Ian Davies said the Company was confident it would complete Phase 2 on budget.

“We know that cost management is a key driver of value on the Western Surat Gas Project, and the Phase 2 work program has provided us the opportunity to test and embed our processes ahead of full field development. We are on track to achieve our cost target of $1.2 million per installed well on this work program, with Senex achieving excellent performance in partnership with its preferred suppliers.

“Production data from these wells will enhance our understanding of reservoir performance on Eos and Glenora ahead of the next phase of drilling which we expect to sanction by end FY18,” Mr Davies said.

Senex holds 100% interest in and operatorship of the Western Surat Gas Project, involving the delivery of coal seam gas from approximately 915 square kilometres of acreage in Queensland’s Surat Basin. The project is expected to support up to 425 wells over its life. Senex has executed a gas sales agreement with GLNG for the supply of up to 50 terajoules per day of gas from the project area over 20 years.

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s