Total
0
Shares
Senex Energy (ASX:SXY) - Managing Director & CEO, Ian Davies - The Market Herald
Managing Director & CEO, Ian Davies
Source: Kalkine Media
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

Atlas (PLR2020-1-13)

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.

SXY by the numbers
More From The Market Herald
Jacka Resources (ASX:JKA) struggles to end suspension

" Galilee Energy (ASX:GLL) nears completion of pilot program at Glenaras

Galilee Energy’s (GLL) shares have spiked this afternoon after the company updated the market on its Glenaras multi-well pilot program within Queensland’s Galilee
Renergen (ASX:RLT) - Managing Director and CEO, Stefano Marani - The Market Herald

" Renergen (ASX:RLT) detects promising signs in new well at Virginia Project

Renergen (RLT) has progressed inclination drilling and detected gaseous odours at the R2D2 well at the Virginia Gas Project in South Africa.
Brookside Energy (ASX:BRK) celebrates landmark spudding at  Jewell well

" Brookside Energy (ASX:BRK) celebrates landmark spudding at Jewell well

Brookside Energy (BRK) is marking a major step forward in Oklahoma’s Anadarko Basin in after finally spudding the company’s inaugural Jewell Well.
Vintage Energy (ASX:VEN) progresses gas operations in Cooper and Otway Basins

" Vintage Energy (ASX:VEN) progresses gas operations in Cooper and Otway Basins

Vintage Energy (VEN) has provided an update on its Vali-2 well in the Cooper Basin and Nangwarry-1 in the onshore Otway Basin.