Australian company Senex Energy has decided to provide $50m to the Western Surat Gas Project in Queensland.
The company will invest in 30 well drilling campaigns, as well as construction of gas and water handling infrastructure.
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The project's first wells will begin operating from the middle of this year and are expected to produce approximately ten terajoules a day (TJ/d) (0.6mmboe per annum) by mid-2018.
Senex Energy managing director and CEO Ian Davies said: “We have seen immediate gas surface from the Glenora pilot wells brought online for continuous production in early February.
“We have also seen evidence of strong gas flows from wells on the Eos block during rehabilitation works being undertaken on legacy QGC wells. These results demonstrate that coal seams in the Glenora and Eos blocks have already been partially dewatered by neighbouring operations.
“The sanctioned work programme will further our understanding of the resource to support an accelerated project timeline, with potential to drill, complete and connect another 30 to 50 wells throughout 2018.
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By GlobalData“Under this scenario and subject to regulatory approvals, Senex can seamlessly transition to a development phase targeting gas production of more than 16 TJ/d by 2019, equivalent to one million barrels of oil equivalent per annum.
The recently announced strategic arrangement between Senex and EIG Global Energy Partners will facilitate these plans and support the delivery of material year-on-year volume growth.
Davies added: “Finally, the 2017 work programme will give us the opportunity to fully embed our design, contracting and execution methodologies in order to demonstrate best in-class safety and cost performance.”
The Glenora and Eos blocks are situated towards the south-east of the Western Surat Gas Project.
The company intends to sell raw gas to GLNG, reported Australianmining.com.au.
Senex Energy has significant subsurface data over these blocks, including the offsetting GLNG well data.
Last year, a pipeline linking the Glenora pilot to the GLNG low-pressure gathering network was developed.
