Senex Energy Ltd., Brisbane, has taken final investment decision for a 50% expansion of natural gas production from its Roma North development in southeast Queensland.
The increase will take production capacity to 24 terajoules/day (9 petajoules/year).
Senex will spend $20 million (Aus.) from existing cash reserves on gas wells, gas gathering infrastructure, and water management infrastructure.
Infrastructure group Jemena intends to construct and fund the Roma North compression facility expansion with commissioning expected during the first quarter of the 2022 financial year.
A 15-year sales agreement with Gladstone LNG is in place for additional volumes of gas at oil-linked gas prices—a deal that Senex says has significant downside protection.
Under the terms of the Roma North Agreement, Jemena will procure and install two additional compression units, having already placed orders for all long-lead items.
Senex plans to drill up to 15 additional wells beginning late in the 2021 financial year as well as install gas and water gathering systems and expand the existing Senex-owned Roma North water infrastructure.
As at end-June, Toma North holds 2P gas reserves of 283 petajoules. An additional 222 petajoules of 2P gas reserves is booked in Senex’s broader western Surat basin acreage.