First gas sales from Senex Energy Ltd’s Hornet-1 gas well in South Australia’s southern Cooper-Eromanga Basin are imminent with the well at pre-commissioning stage. Senex completed a flow test of the Hornet-1 gas well during which gas flowed to surface at a rate of more than 2 MMcf/d.

“The well has been completed for production and the surface facilities, including the separation equipment and flow lines, have been installed,” the company said.

In parallel, the pipeline connecting the Hornet field to the Santos-operated South Australian Cooper Basin joint venture (SACB JV) network at the Allambi Field was ready for commissioning. The gas sales agreement with the SACB JV provides for the supply of unprocessed raw gas from the Horne Field, with up to 10 MMcf/d to be supplied. This will provide Senex with the flexibility to monetise the appraisal of the Hornet Field through an extended flow test, without the risk of penalties for non-delivery.

Senex Managing Director Ian Davies said the headway the company was making was evidence of its four-year growth acceleration strategy in action.

“Achieving our first gas sales is an important step in our evolution into a major Australian gas producer and the forerunner to a large and sustainable gas business both in the Cooper and the Surat basins,” he said.

Senex’s growth acceleration strategy is focussed on delivering enhanced return to shareholders as well as building an S&P/ASX 100-listed company with “world-class operating credentials”.

Senex signed the gas sales agreement with the SACB JV in March, with gas originally scheduled to be supplied in the September quarter.

Santos remains in a strong financial position with no debt and $69.4 million available cash.

Lauren Barrett can be reached at lbarrett@hartenergy.com.

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