Senex Energy Limited has announced that the final investment decision (FID) has been taken for the $40 million expansion of natural gas production at Atlas by 50 per cent to 18 petajoules (PJ) per year. Senex’s Atlas operation is located 20 kilometres south-west of Wandoan in Queensland’s Surat Basin.
Atlas supplies much needed natural gas to the east coast market for the production of electricity and everyday consumer products from bricks and beverage bottles.
In September 2020, Senex was awarded highly valuable additional acreage by the Queensland Government that would enable production at Atlas to be expanded, as well as high-potential exploration acreage in the Bowen Basin on trend with the Scotia and Meridian gas fields.
According to Senex, capital expenditure of around $40 million for natural gas wells, gas gathering and water management infrastructure for the expansion will be funded from existing cash reserves.
Senex Managing Director and CEO, Ian Davies, said the Atlas expansion project is yet another example of the low-risk, high-return organic growth opportunities available to Senex with its established hub-and-spoke infrastructure operating model.
“Atlas is a high-quality development, providing material and reliable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Mr Davies said.
“This investment follows strong project execution and natural gas production performance at Atlas, with reservoir performance and well availability continuing to excel.”
“The Atlas expansion project will inject around $15 million into regional communities, supporting more than 100 jobs during construction,” he said.
Senex is finalising arrangements with Jemena to construct and fund the Atlas processing facility expansion under an extension of existing tolling arrangements, with commissioning expected in Q1 FY23. The company also expects a drilling program at Atlas to commence in September 2021.