Major natural gas drilling contract awarded

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Senex Energy’s natural gas drilling program for the Surat Basin will begin next month with the contract being awarded to an experienced oil and gas services provider.

Easternwell will start Senex Energy’s natural gas drilling program across Project Atlas and Roma North in May 2019, with completion of this initial drilling program planned for mid-2020.

Managing Director and CEO of Senex, Ian Davies, said the two companies 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,” Mr Davies said.

The contract continues Senex’s consistent delivery of project milestones as it becomes an important supplier of gas to the 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

• Progressed construction of the Roma North gas processing facility, with civil works and pipeline construction complete and major equipment items installed. Commissioning of this facility and first sales gas are due in mid-2019

• Progressed construction of the well lease pads in advance of drilling.

“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 2019.

“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,” Mr Davies said.

Senex can extend the duration of the Easternwell contract to a total period of up to two years from the contract start date. The contract value is in line with capital expenditure guidance previously provided (refer to ASX announcement of 29 October 2018).

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