Senex Energy Ltd., Brisbane, has sanctioned a major investment in the proposed Western Surat Gas Project by committing $50 million (Aus.) to a 30-well coal seam gas (CSG) drilling campaign in southeastern Queensland.
The program follows the success of the Glenora pilot program where a number of wells were brought on line for continuous production early this month. There was immediate gas flow to surface.
Senex is also encouraged by strong gas flows from former Queensland Gas Corp. wells on the Eos block during rehabilitation works.
Senex Energy Chief Executive Officer Ian Davies says the results demonstrate that coal seams in the Glenora and Eos blocks have already been partially dewatered by neighbouring operations.
The initial 30-well campaign is expected to yield gas production of 10 terajoules/day by mid-2018.
Davies says this work will increase the understanding of the CSG resource and support an accelerated project timeline. Stage 2 of the program is potentially to drill, complete, and connect another 30-50 wells throughout 2018.
All being well, Senex will be able to transition to a development phase targeting gas production of more than 16 terajoules/day by 2019.
The Glenora and Eos blocks lie in the southeast of the project area, due north of the Gladstone LNG (GLNG) joint venture’s producing Roma field.
A pipeline from the Glenora pilot wells to the GLNG low-pressure gathering network was constructed last year. Senex plans to sell raw gas to GLNG subject to agreement of commercial terms.
