Senex Energy Ltd has announced that it has completed the transaction for the development of the Western Surat Gas Project in Queensland, Australia with Gladstone LNG (GLNG).
From the sale of the Maisey block to GLNG, Senex received AUS$42 million, as well a comprehensive suite of subsurface, production and other technical data.
Under a binding 20 year gas sales agreement, Senex will supply up to 50 TJ/d of gas to GLNG from its Western Surat Gas Project.
The Western Surat Gas Project presents an opportunity to develop new revenue from a large 2P reserve base in a gas producing area. Combined, the two agreements will de-risk the project advancement by providing clear commercialisation and a financing pathway. This will allow access to GLNG infrastructure, and will also provide useful subsurface data.
Ian Davies, the Managing Director of Senex, said: “The completion of this transaction is a milestone in Senex’s strategy to capitalise on the growth in Australia’s East Coast gas market. The transaction enhances our financial position today, and should result in the Western Surat Gas Project contributing material gas volumes and significant cash flow to Senex over the next 20 years.
“The gas sales agreement we have struck with GLNG gives us optionality over our gas profile, allowing us to stage development and ramp up volumes to ensure the optimum economic outcome for the project. We are hard at work defining the economic and operating parameters of the project and will commence on the ground appraisal activities in the second half of FY16.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/16122015/senex-completes-transaction-with-glng-1777/