- The Queensland Government has awarded Senex Energy (SXY) preferred tenderer status for natural gas acreage in the Surat and Bowen basins
- This status brings Senex's natural gas footprint in Queensland to roughly 2300 square kilometres of acreage across the Surat and Bowen basins
- Importantly, this award allows Senex to expand gas production at the Atlas block by 50 per cent to roughly 18 petajoules per year
- To do this, Senex will leverage its existing infrastructure and plans to expand its Jemena gas processing facility
- Additionally, being awarded preferred tenderer status at the Bowen basin will see Senex conduct an initial four-year work program
- Work will include geological studies, 2D seismic acquisition and an exploration well
- Company shares are trading 4.92 per cent higher for 32 cents
Senex Energy (SXY) has been awarded preferred tenderer status for natural gas acreage in the Surat and Bowen basins.
This is part of the Queensland Government's domestic gas acreage tender process.
The award includes further highly valuable Atlas acreage immediately adjacent to Senex's existing development, and high-potential exploration acreage in the Bowen Basin.
"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," Managing Director and CEO Ian Davies said.
"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," Ian added.
The Atlas block is bounded by prolific gas-producing acreage, with resource quality and reservoir performance expected to be of similar high-quality to Atlas.
This award allows Senex to focus on its commercialisation strategy of leveraging existing hub-and-spoke infrastructure model to rapidly expand natural gas production to roughly 18 petajoules per year. This marks a 50 per cent increase.
A key part of expanding production is Senex's existing Jemena gas processing facility which it plans to expand to accommodate higher volumes from the first half of 2022. This is subject to finalising definitive agreements with Jemena.
Bowen Basin (PLR2020-1-9)
Additionally, Senex has been awarded preferred tenderer status for the 486 square kilometre natural gas exploration block PLR2020-1-9. This block is located on-trend between the Scotia and Meridian gas fields in the Bowen Basin and close to existing infrastructure.
The Bowen Basin contains a number of successful producing gas developments. These include the Fairview, Arcadia, Peat, Scotia, Meridian and Moranbah fields.
Senex plans to conduct a four-year program of geological studies, 2D seismic acquisition and an exploration well.
Pleasingly, Senex's natural gas footprint in Queensland now comprises roughly 2300 square kilometres of acreage across the Surat and Bowen basins.
Company shares are trading 4.92 per cent higher for 32 cents at 1:48 pm AEST.