Oz Senex Achieves First Gas Sales from Atlas Project

Sydney-listed Senex Energy has achieved first gas sales into the east coast market ahead of schedule, with gas being sold to Queensland power generator CleanCo, it said December 10 in a statement. Under the agreement with CleanCo, Senex has the right to sell initial quantities of gas until June 30, 2020.

“Following start-up of the first two trains of the five-train, 15 petajoules/year Project Atlas gas processing facility, production of sales gas is underway,” Senex said. The company is supplying gas at the Wallumbilla gas hub in Queensland via the 60-km Project Atlas pipeline. Gas is being sold on a fixed-price basis in line with current market levels, Senex said.

“With the support of the Queensland government, Senex has successfully delivered this development within 18 months of grant of the petroleum lease. We have achieved this on budget and ahead of schedule, allowing early gas sales to be made to one of our foundation customers, CleanCo,” Senex CEO Ian Davies said.

Senex is now focused on completing the initial 60 well drilling campaign by mid-2020 and ramping up production to an initial plateau of 12 petajoules/year by the end of FY2021, Davies said.

Senex has drilled 23 wells of the initial 60-well Project atlas campaign, with 15 wells on production following recent connection. Production from these wells is currently above 3 terajoules/day during this early stage of the 12 to 18-month ramp-up.