Senex Energy has announced the final investment decision (FID) has been taken for the $40 million expansion of natural gas production at Atlas by 50 per cent to 18 petajoules (PJ/year).
Managing director and CEO Ian Davies said the Atlas expansion project is yet another example of the low-risk, high-return organic growth opportunities available to Senex with its established hub-and-spoke infrastructure operating model.
“Atlas is a high-quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” he said.
“This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performance and well availability continuing to excel.”
Davies said the Atlas expansion project will inject around $15 million into regional communities, supporting more than 100 jobs during construction.
The progression of Atlas to 18 PJ/year is the next phase of growth to drive Senex towards its stated annual production target of more than 60 PJe/year by the end of the 2025 financial year.
With development drilling to start in September, Senex is on track to deliver a material increase in gas sales in the next 12 months.
The company advised that this investment decision for the Atlas expansion project will take the production capacity of Senex’s portfolio to 27 PJ/year.
Outside of Atlas, the Roma North area holds 2P gas reserves of 497 PJ.
This large reserve base supports a master development plan to continue expanding production at Roma North to up to 36 PJ/year (from 9 PJ/year currently) with a 2P remaining reserve life of 14 years.
The expansion of the existing Roma North processing facility to 9 PJ/year represents the completion of the first stage of this wider Roma North development4, with Senex expected to take the FID for the second stage of expansion (Roma North Stage 2) to 18 PJ/year in the coming months.