A natural gas drilling program for the Surat Basin, headed by Senex Energy, will begin in May 2019, with a contract having already been awarded to an experienced provider of oil and gas services.
Easternwell will start Senex Energy’s natural gas drilling program across Project Atlas and Roma North in May 2019, with completion of this initial drilling program planned for mid-2020.
Managing Director and CEO of Senex, Ian Davies, said the two companies had developed a strong working relationship over many years in the Cooper and Surat basins.
“This contract puts in place one of the final major elements for the delivery of our Surat Basin natural gas projects,” Mr Davies said.
The contract continues Senex’s consistent delivery of project milestones as it becomes an important supplier of gas to the east coast gas market.
“With construction of the gas processing facilities on schedule, and drilling to start in May, Senex is on track to deliver first sales gas from Roma North mid-year and from Project Atlas by the end of 2019,” Mr Davies said.
“These developments will achieve a step change in production, cash-flow and earnings for Senex and deliver much needed gas to the east coast market.”
Senex can extend the duration of the Easternwell contract to a total period of up to two years from the contract start date. The contract value is in line with capital expenditure guidance previously provided.