Senex Energy has taken final investment decisions (FIDs) on the Atlas and Roma North natural gas development programs in Australia following financial close of a A$150m ($106.3m) debt facility.
The Australia energy company has also sanctioned multi-year work programs for the Atlas and Roma North projects, which are being taken up to increase the company’s annual oil and gas production across the Cooper and Surat basins to four mmboe.
Senex Energy said that the goal of the two onshore gas projects is to establish it as a material supplier of gas to the east coast market and as a highly cash generative oil and gas operator.
Senex Energy managing director and CEO Ian Davies said: “We now embark on a cornerstone year for Senex, creating the foundation for a step-change in production and cash flow over the near term, while maintaining significant optionality for ongoing growth from our existing acreage.
“A more than four-fold increase in annual production to four million barrels of oil equivalent demonstrates the step-change Senex is targeting.”
The company’s primary aim of the Project Atlas natural gas development program is to achieve plateau production of nearly two mmboe per annum. The company plans to drill maintenance wells on an ongoing basis to maintain plateau production.
According to Senex Energy, the Atlas natural gas development will include gas and water gathering network and a 60km pipeline to be connected to the Wallumbilla Hub among other infrastructure.
For the Roma North natural gas development program, which is also known as the Western Surat Gas Project, the company will focus initially on progressively developing the Glenora and Eos blocks along with the appraisal of the Mimas and Tethys blocks.
The main goal of the Roma North project will be to achieve minimum initial production of around one mmboe per annum. It will include construction and commissioning of a gas processing facility in addition to drilling of development wells and other works.
Overall, Senex Energy is planning to invest A$220-250m ($155.9-177.1m) on development activities in the Surat Basin between FY2019 and FY2021. The company proposes to drill nearly 110 development wells over 18 months, starting from late Q3 FY19.