Australian oil and gas producer Senex Energy Ltd. (ASX: SXY) will start its Surat Basin natural gas drilling program next month after contracting oil and gas services provider Easternwell. Senex is a supplier of gas to Australia's east coast gas market.
Over the past 12 months Senex has received all required state and federal regulatory approvals across Project Atlas and Roma North; partnered with major infrastructure provider Jemena to build, own and operate the Project Atlas gas processing facility and associated pipeline.
Civil works are underway on this facility, with commissioning and first sales gas due late in 2019, according to the company.
In addition, Senex said it has progressed construction of the Roma North gas processing facility, with civil works and pipeline construction complete and major equipment items installed. Commissioning of the facility and first sales gas are due in mid-2019, the company said in a press release. I also said it has progressed construction of the well lease pads in advance of drilling.
Managing Director and CEO Ian Davies said Senex and Easternwell had developed a strong working relationship over many years in the Cooper and Surat basins.“This contract puts in place one of the final major elements for the delivery of our Surat Basin natural gas projects.
“With construction of the gas processing facilities on schedule, and drilling to start in May, Senex is on track to deliver first sales gas from Roma North mid-year and from Project Atlas by the end of 201," he said."These developments will achieve a step change in production, cash-flow and earnings for Senex and deliver much needed gas to the east coast market.”
Easternwell will start Senex’s natural gas drilling program across Project Atlas and Roma North in May, according the press release. Completion of this initial drilling program planned for mid-2020.
Senex can extend the duration of the Easternwell contract to a total period of up to two years from the contract start date.
Recommended Reading
Exxon to Sell Older Permian Assets to Hilcorp in $1B Deal, Sources Say
2024-11-13 - Reuters reported in June that Exxon was auctioning the assets to focus on higher growth shale drilling properties, following the completion of its $60 billion takeover of Pioneer Natural Resources in May.
Tailwater E&P CEO Details Recent Core Permian Acquisition
2024-10-08 - Tailwater E&P CEO Doug Prieto said the firm put together funding for the deal from institutions, investors and family offices looking for “high quality assets that have durable cash flow.”
LongPath Adds Vital Energy Assets to Methane Sensing Network
2024-09-26 - LongPath Technologies is expanding its methane sensing network in the Permian Basin with a significant portion of Vital Energy’s assets.
FTC Oks Chevron-Hess Deal, Bans John Hess from Board
2024-09-30 - Federal regulators signed off on a blockbuster tie-up between Chevron and Hess Corp. but banned CEO John Hess from sitting on the Chevron board.
Coterra Eyes Wolfcamp D, Penn Shale Upside with $3.95B Permian M&A
2024-11-15 - With $3.95 billion in Permian M&A, Coterra is adding new Delaware Basin locations in the Bone Spring, Harkey and Avalon benches—and eyeing upside from deeper zones.