The first 30 appraisal wells have been brought online as part of Senex Energy’s phase two investment program on the Western Surat Gas Project.

The phase two program is Senex’s first major investment in the Western Surat Gas Project, and involves the drilling of 30 appraisal wells on the Eos and Glenora blocks, located approximately 30km from Roma and directly north of GLNG’s producing Roma field.

Of the 30 wells in the phase two program, 24 have been drilled, with the remainder to be completed in the coming months.

Senex has brought the first pod of phase two wells online, with all 30 wells to be producing by the end of calendar year 2017.

Senex expects production from the phase two wells to conform to the typical profile of coal seam gas wells, with dewatering to precede a steady increase in gas production rates.

Senex is working to progress a raw gas sales agreement with GLNG for delivery of phase two gas into existing Roma field infrastructure.

Senex Managing Director and CEO, Ian Davies, said the company was confident it would complete phase two on budget.

“We know that cost management is a key driver of value on the Western Surat Gas Project, and the phase two work program has provided us the opportunity to test and embed our processes ahead of full field development. We are on track to achieve our cost target of $1.2 million per installed well on this work program, with Senex achieving excellent performance in partnership with its preferred suppliers,” Mr Davies said.

“Production data from these wells will enhance our understanding of reservoir performance on Eos and Glenora ahead of the next phase of drilling which we expect to sanction by end FY18,”

Senex holds 100 per cent interest in and operatorship of the Western Surat Gas Project, involving the delivery of coal seam gas from approximately 915 square kilometres of acreage in Queensland’s Surat Basin.

The project is expected to support up to 425 wells over its life.

Senex has executed a gas sales agreement with GLNG for the supply of up to 50 terajoules per day of gas from the project area over 20 years. 

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