One of Senex's oil sites.
One of Senex's oil sites.

Senex completes latest phase on $55m Surat gas project

GAS production on the next phase of a $55 million CSG project in south-west Queensland is tracking better than expected.

Senex Energy has finished building the second phase of its Western Surat Gas project, on budget, with initial gas volumes from the 30 completed wells above four terajoules per day.

CEO Ian Davies told investors the company was heading into 2018 in a solid financial position, after completing the $36 million section of the project.

NEW DEAL: Senex Energy CEO Ian Davies discusses the company's plan to develop 100 wells in the Surat Basin, which will produce 30 terajoules of gas per day and create 150 jobs.
NEW DEAL: Senex Energy CEO Ian Davies discusses the company's plan to develop 100 wells in the Surat Basin, which will produce 30 terajoules of gas per day and create 150 jobs. Contributed

"I am pleased to report that we have delivered phase two of the Western Surat Gas Project on time and on budget, with all-in costs of A$1.2 million per well," he said.

"Phase two initial production results are ahead of expectations, producing over four terajoules of gas per day.

"We have strong appetite from lenders to support both our projects in the Surat Basin as part of the whole of company financing package that we expect to close in the coming months.

"2018 is set to be an exciting year of delivery for Senex, particularly in our gas business."

Senex announced last week a deal to sell raw gas from phase two wells to GLNG, which will either be pumped into the domestic market or exported out of Gladstone.

"Selling our phase two gas to GLNG is the cost effective and environmentally responsible solution for the appraisal of the Western Surat Gas Project acreage," Mr Davies said.

"This is a great outcome for the highly successful phase two investment program, which was completed on schedule and on budget, with excellent initial subsurface performance."



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