Senex Energy Ltd., Brisbane, has announced first gas production from its Project Atlas in the onshore Surat basin of southeast Queensland.
The drilling campaign in the coal seam gas project began in August. Eleven wells of the planned 60 wells have been drilled and completed. The first four of those have now been brought on stream.
The announcement comes on the heels of last week’s completion of construction of the 60 km buried gas pipeline to the Wallumbilla gas hub near Roma by pipeline company Jemena.
Project Atlas also includes a 15-petajoule/year (40 terajoules/day) gas processing facility which is nearing completion and will begin commissioning shortly. In the meantime produced gas will be flared.
Gas from the project will supply Queensland manufacturers including CSR, Orora, and O-I. Senex has contracted most of its expected gas production volumes in 2020 and more contracts are being negotiated.
Senex was first granted the petroleum lease in March 2018. The gas production to meet the sales contracts will begin on Jan. 1, 2020.
It is expected that the company’s Surat basin production rate will reach 18 petajoules/year by June 2021.
Jemena retains ownership and will operate the downstream facilities of pipeline and gas facility.
