Senex Energy Signs Major Sales Agreements With GLNG

Senex Energy (ASX:SXY) announced that it has entered into a series of major agreements with GLNG for the development of the Western Surat gas project in Queensland.
As quoted in the press release:

• Senex to receive $42 million in cash, plus a comprehensive suite of subsurface, production and other technical data that will accelerate and de-risk Senex’s project for a successful Final Investment Decision, in exchange for the sale of the 77 km2 Maisey block within ATP 889 to GLNG
• Senex to supply up to 50 TJ/day of sales gas from its Western Surat Gas Project to GLNG under a binding 20-year gas sales agreement (GSA) at USD JCC oil-linked pricing
• Potential shared use of existing GLNG water treatment and gas processing infrastructure
• Raw gas sales and raw water disposal from Glenora Pilot agreed in principle to enable early gas sales
• Subject to satisfaction of conditions (including approvals) outlined in this announcement

Senex’s Western Surat Gas Project represents a near term opportunity to develop a major new revenue stream for Senex from a large 2P reserve base in a strategically located gas producing region.

Ian Davies, managing director of Senex, commented:

These transactions will deliver significant value to Senex through enabling an accelerated monetisation of our material resource base. This is a natural relationship given our acreage sits adjacent to GLNG’s Roma fields. The provision of production and subsurface information from these operating fields together with close collaboration with GLNG will be hugely valuable to the efficient development of both projects.

Click here to read the full Senex Energy (ASX:SXY) press release.