Oil and Gas News

Senex hits record with new gas sales

Atlas expansion project

Senex Energy is making progress with the success of its first gas sales from Project Atlas and the Gemba gas field.

Project Atlas, located near Wandoan and Miles in Queensland’s Surat Basin, achieved first gas sales into the east coast market ahead of schedule..

Following the start-up of the first two trains of the five-train, 15 PJ/year Project Atlas gas processing facility, production of saleable gas is under way.

Gas is being sold to CleanCo, the new Queensland Government-owned corporation focussed on delivering affordable clean energy. Under the agreement, Senex has the right to sell initial quantities of gas until
June 30 2020.

Senex is supplying gas at the Wallumbilla Gas Hub in Queensland via the 60km Project Atlas pipeline. Gas is being sold on a fixed-price basis in line with current market levels.

Senex managing director and chief executive officer Ian Davies said the company had delivered gas from Australia’s first acreage dedicated to domestic supply in what was believed to be record time for a greenfield project.

“With the support of the Queensland Government, Senex has successfully delivered this development within 18 months of grant of the petroleum lease. We have achieved this on budget and ahead of schedule, allowing early gas sales to be made to one of our foundation customers, CleanCo,” Davies said.

“With the processing facility delivering gas, we are focussed on completing the initial ~60 well drilling campaign by mid-2020 and ramping up production to an initial plateau of 12 PJ/year by the end of financial year 2021.”

Senex has drilled 23 wells of the initial 60-well Project Atlas campaign, with 15 wells on production following recent connection.

The Senex-owned and operated Gemba gas field in the Cooper Basin has hit a significant milestone in production following the successful tie-in to the Santos-operated gas gathering network.

Gemba is on the south-west margin of the Allunga Trough, 5km from existing infrastructure and 37km south-west of the Moomba processing facility.

The field was discovered in late 2018 with subsequent testing supporting ultimate gas recovery estimates of 15 petajoules, subject to successful field development.

Following successful tie-in to the Santos-operated gathering network, the SACB JV is now processing raw gas from the Gemba field under a gas processing agreement.

Davies said the Gemba field represented a new gas supply source for both Senex and the domestic gas market.

“This discovery further diversifies Senex’s growing east coast gas portfolio and we now look forward to future appraisal and development of the Gemba field,” Davies said.

“Senex is appreciative of the ongoing support of the South Australian government. The $5.26 million PACE grant for the Gemba project has accelerated new gas supply into the domestic market.”

Gemba 1 is currently producing raw gas at four mmsc/day on a constrained basis. Saleable gas is being sold to the Pelican Point Power Station in South Australia under a fixed price gas sales agreement in line with current market prices.

Associated liquids, including ethane, LPG and condensate, are being sold to the SACB JV as part of the gas processing agreement.

Gemba is expected to contribute additional production of around 0.1 mmboe in the 2020 financial year.

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