Senex Energy (ASX: SXY) has confirmed it is delivering the wholly-owned Surat Basin natural gas development program in Queensland to schedule and budget, recording performance highs at the Roma North and Project Atlas production facilities.
Roma North production has exceeded 13.5 terajoules per day and is tracking towards the plant’s initial capacity of 16TJ/day, or around 6 petajoules per year.
A total of 26 wells have been drilled during the current program, with 10 wells currently in production and the remainder to be brought online in the coming weeks.
Average daily production rates across the Roma North field are exceeding 0.3TJ/well and increasing.
At Project Atlas, 23 wells are online and producing above 6.5TJ/day during the early ramp-up phase, with most wells being online for less than nine weeks.
The Atlas gas processing facility has commenced production from two of five planned trains and is expected to have a capacity of 40TJ/day, or approximately 15PJ/year, once final commissioning is complete.
Across Roma North and Atlas, a total 49 wells have been drilled to date in the current program and 33 are in production.
Quality and potential
Senex managing director and chief executive officer Ian Davies said Surat’s production performance has demonstrated the asset’s quality and potential, as well as the technical expertise of the Senex team.
“[We] start 2020 with most of the Surat Basin gas development program successfully delivered and gas production rates continuing to perform above expectations,” he said.
“We are delighted with our operational and production performance to date, and we look forward to continuing to deliver the potential of these assets.”
Senex is developing the Surat Basin with a view to becoming a material supplier of natural gas to the east coast market.
Gas sales agreement
In December, Senex announced an expansion of a two-year domestic sales agreement with packaging company Orora Limited to supply 13.2PJ of natural gas from Project Atlas over six years starting 2022.
Gas will be supplied through the Wallumbilla gas hub, west of Brisbane, via a 60 kilometre pipeline at a fixed price in line with market levels, indexed annually.
Orora has three plants in Queensland where it manufactures cardboard, glass and aluminium packaging products.
Senex reached an original agreement with Orora in May for the supply of 3.3PJ.
Senex has also commenced domestic gas sales to state-owned power generator CleanCo and CSR Limited (ASX: CSR).
CSR will use the gas at its three south-east Queensland manufacturing plants which produce PGH bricks, Gyprock plasterboard and Bradford insulation.