Senex Energy Limited (Senex) continues to achieve positive results from its unconventional gas exploration campaign in South Australian Cooper Basin permit PEL 516 (Senex: 100%), and reinstates production from its conventional oil business.


KEY POINTS

  • Sasanof-1 continues to clean up, with gas flows to surface continuing.
  • Formation gas samples taken at surface confirm heavy gases and liquid hydrocarbons.
  • Talaq-1 exceeds expectations, with high gas readings recorded throughout the Permian Section with evidence of condensate and heavy gases.
  • Talaq-1 currently being cased and will be suspended to await future hydraulic fracture stimulation.
  • Cooper Basin oil production back online with restricted road access regained after recent rain events, currently producing over 4,500 barrels of oil per day from operated fields.
  • Senex announces 2012/13 oil production target of one million net barrels of oil.
  • The 790 km2 Cordillo 3D seismic program is progressing well, with over 140 km2 recorded.

Cooper Basin oil production back online

Following the unseasonal winter rain events that affected Cooper Basin operations in the first week of June, the majority of Senex's oil operations were shut in pending the reopening of vital road infrastructure to deliver crude oil from the Company?s oil fields to Moomba.

Several key roads were reopened during the week of 11 June 2012 and Senex has now recommenced restricted production from most of its operations, including the Growler and Snatcher fields. As at 14 June Senex?s operated fields were producing over 4,500 gross barrels of oil per day, with additional production coming online over the coming week as the region continues to dry out and roads are opened up to heavier traffic.

Before the interruption, Senex had produced at a peak rate of over 6,500 gross barrels of oil per day from operated oil fields whilst striving to achieve its stated production target for 2011/12 of 700,000 net barrels of oil.

Due to the deferral of production associated with this most recent rain event, the 2011/12 production target has been revised to approximately 600,000 net barrels of oil.

Senex announces 2012/13 oil production target of one million net barrels of oil

Senex is targeting oil production of one million net barrels of oil from its currently producing fields in 2012/13.

Senex Managing Director Ian Davies said the growth target for 2012/13 was a natural progression from the 2011/12 production achievements.

'Senex is looking forward to a full year of production operations in 2012/13, with weather risks substantially reduced by the construction of pipeline infrastructure from our western flank oil fields to Moomba. Achieving one million net barrels of oil will represent an exciting milestone for the Company,' he said.

The extensive Cordillo Downs 3D seismic survey in the northern Cooper Basin has continued with 590 km2 of the total 780 km2 already cleared and 140 km2 recorded.

The 3D seismic survey will cover three South Australian permits: PEL 88 (100% Senex), PEL 90M (100% Senex) and the Northern Area of PEL 514 (50% Senex; 50% Planet Gas Limited) (refer Figure 3). These permits are considered to contain Birkhead Formation stratigraphic and structural traps capable of hosting oil plays similar to those at the proven Growler and Snatcher oil fields in PRL 15 and PEL 111 to the southwest.