Australian energy producer Senex Energy will move ahead at its Western Surat gas project after receiving the necessary regulatory approval from the Australian government.
This approval under the Commonwealth Government Environment Protection and Biodiversity Conservation Act is the last in a long list of state environmental approvals and petroleum lease permits acquired by Senex.
“We are delighted to have achieved this critical milestone for the Western Surat gas project,” Ian Davis, Senex’s managing director, said in the announcement. “This progress demonstrates continuing strong momentum in the execution of our gas projects and our east coast gas strategy.”
For Senex, a company with a 30-year history in Australia, the potential production value of Western Surat spans decades.
Located in Queensland’s Surat Basin, the Western Surat is comprised of roughly 840 square kilometers of natural gas acreage. The company reports that there are 395 petajoules of 2P reserves within the acreage, which Senex plans to develop in a multi-phase approach.
The initial phase will be developed through a 16-terajoule-per-day gas-processing facility that is part of the GLNG infrastructure.
Moving ahead with the Surat gas project wasn’t Senex’s only newsworthy achievement this week. The energy producer also struck oil in the Cooper Basin. Using a 3D seismic survey, Senex and its project partner Beach Energy (ASX:BPT) discovered the oil during an exploratory program.
“We are delighted to have made this oil discovery from the first well of our FY19 drilling campaign,” Davis said in the press release. “The firm ten well FY19 campaign presents an exciting opportunity to drive growth and value from our western flank acreage, with a mix of exploration, appraisal and horizontal development wells.”
Senex shares remained flat on Wednesday (August 15), closing at AU$0.48.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.