Delivers Surat Basin Natural Gas Reserves Upgrade
Brisbane, Aug 9, 2021 AEST (ABN Newswire) - Senex Energy Limited (
ASX:SXY) (UDB:FRA) (VPTOF:OTCMKTS) today released its independently assessed1 estimates of reserves as at 30 June 2021, reporting a 24% increase in Surat Basin 1P gas reserves to 261 PJ and a 290% reserves replacement ratio (RRR) on 2P reserves of 767 PJ (up 4%). The uplift in reserves comes as Senex achieved a record 17.3 PJ of production in FY21 from its high-quality Atlas and Roma North operations and incorporates the award of ATP 2059, now part of the Atlas acreage.
Highlights include:
- Surat Basin 1P (proved) gas reserves up 51 PJ (24%) to 261 PJ
- Surat Basin 2P (proved and probable) gas reserves up 28 PJ (4%) to 767 PJ
- Surat Basin 3P (proved, probable and possible) gas reserves up 21 PJ (2%) to 1,016 PJ
- 1P reserves replacement ratio of 440%; 2P reserves replacement ratio of 290%
Senex Managing Director and CEO Ian Davies said Senex's Surat Basin reserves position follows the successful delivery of its transformational natural gas developments.
"Daily production now exceeds 52 TJ/day (19 PJ/year) with our near-term growth projects proceeding well towards our targeted five-fold growth in annual production to more than 60 PJe by the end of FY25.
"The first phase of our Roma North expansion has now been delivered with additional expansion projects nearing FID for both Roma North and Atlas, which will increase portfolio production to 36 PJ/year.
"Our low-risk, low-carbon and long-life expansion plans are underpinned by our resilient and material natural gas reserves base. With 767 PJ of 2P reserves and over 1,000 PJ of 3P reserves, we are well positioned to continue to grow our production profile and deliver significant and sustainable value for all our stakeholders," Mr Davies said.
Senex's reserve upgrades in the Surat Basin have been driven by successful development drilling, including targeted appraisal activities, as well as the award of ATP 2059 increasing the area of the Atlas project by 32%. Daily production has increased 40% from 37 TJ/day (13.5 PJ/year) at the start of FY21 and now exceeds 52 TJ/day (19 PJ/year).
Surat Basin 2P gas reserves of 767 PJ represent over 35 years of natural gas production at the current target annual production of around 20 PJ/year (56 TJ/day), providing material opportunities for gas production acceleration and expansion utilising Senex's hub-and-spoke infrastructure operating model. Surat Basin 1P reserves increased 24% to 261 PJ following successful project development and resource delineation.
Atlas
Atlas recorded a 46 PJ (15%) increase in 2P gas reserves to 270 PJ, largely attributable to the award of high-value acreage in ATP 2059 adjacent to, and extending, the Atlas development.
Atlas 2P gas reserves of 270 PJ provide the opportunity to increase the target production rate of the project by 50% to 18 PJ/year, representing a reserves to production (R/P) ratio of 15 years.
Roma North
Roma North achieved a 2P reserve replacement ratio of 100%, notwithstanding a year of strong production performance with limited appraisal activity. Operational performance of the Roma North gas processing facility has been excellent, with the expansion project to increase capacity by 50% to 9 PJ/year in the final stages of commissioning.
The Roma North area holds 2P gas reserves of 497 PJ and 3P gas reserves of 746 PJ. This large reserve base supports a master plan to ultimately expand production to 36 PJ/year, reflective of a 14 year 2P R/P ratio and a 20 year 3P R/P ratio, using Senex's proven hub-and-spoke infrastructure operating model.
The commissioning of the expanded processing facility to 9 PJ/year represents the first phase of the wider Roma North development, and Senex is preparing to take FID for the second phase of expansion to 18 PJ/year in the coming months. Planning for the third phase of expansion has commenced, which is targeting annual Roma North production of 27 PJ/year. Each phase of expansion in the Roma North area provides valuable subsurface and production data, de-risking future expansion decisions.
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About Senex Energy Limited
Senex Energy Ltd (ASX:SXY) (OTCMKTS:VPTOF) (FRA:UDB) is an established, rapidly growing and low-carbon Australian natural gas producer. Our long life Surat Basin assets contribute around 20 petajoules of natural gas per year into the east coast gas market to support our customers. Senex is focused on sustainably delivering balance sheet strength, resilient cashflows, growing dividends to support Australia's energy needs as it transitions to a lower carbon future.
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