Senex has awarded a major Surat Basin drilling contract to Easternwell across Project Atlas and Roma North, with works to commence in May 2019.
Easternwell will commence this initial drilling program next month, through to its expected completion in mid-2020.
Senex has the option to extend the duration of this contract to a total period of two years from the contract start date.
This contract value is in line with the capital guidance Senex set out in October 2018 for the acceleration of Surat Basin natural gas development programs and oil exploration in the Cooper Basin, amounting to $110–130 million.
“This contract puts in place one of the final major elements for the delivery of our Surat Basin natural gas projects,” Senex managing director and chief executive Ian Davies said.
“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.
“These developments will achieve a step change in production, cashflow and earnings for Senex and deliver much needed gas to the east coast market.”
Senex has received all required state and federal regulatory approvals across Project Atlas and Roma North, and partnered with infrastructure provider Jemena to build, own and operate the Project Atlas gas processing facility.
Civil works are underway at the Project Atlas facility and complete at the Roma North gas processing facility.