Senex Energy Limited has released its independently assessed [1] estimates of reserves as at 30 June 2021, reporting a 24 per cent increase in Surat Basin 1P gas reserves to 261 petajoules (PJ) and a 290 per cent reserves replacement ratio (RRR) on 2P reserves of 767 PJ (up 4 per cent).
The uplift in reserves comes as Senex achieved a record 17.3 PJ of production in the 2021 financial year from its high-quality Atlas and Roma North operations and incorporates the award of ATP 2059, now part of the Atlas acreage.
Highlights from the assessment include:
- Surat Basin 1P (proved) gas reserves up 51 PJ (24 per cent) to 261 PJ
- Surat Basin 2P (proved and probable) gas reserves up 28 PJ (4 per cent) to 767 PJ
- Surat Basin 3P (proved, probable and possible) gas reserves up 21 PJ (2 per cent) to 1,016 PJ
- 1P reserves replacement ratio of 440 per cent; 2P reserves replacement ratio of 290 per cent
Senex’s 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 PJ by the end of FY25,” Mr Davies said.
“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,” he added.
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 per cent. Daily production has increased 40 per cent 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 per cent to 261 PJ following successful project development and resource delineation.
Atlas
Atlas recorded a 46 PJ (15 per cent) 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.
Senex said Atlas 2P gas reserves of 270 PJ provide the opportunity to increase the target production rate of the project by 50 per cent 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 per cent, notwithstanding a year of strong production performance with limited appraisal activity.
Senex states that the operational performance of the Roma North gas processing facility has been excellent, with the expansion project to increase capacity by 50 per cent 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.
[1] Independently assessed by Netherland Sewell & Associates.
