Senex Energy has released its independently assessed1 estimates of reserves and contingent resources as at 30 June 2020, reporting a 21% increase in Surat Basin 2P gas reserves to 739 PJ following outstanding execution of its Surat Basin natural gas developments.

Excellent appraisal and development drilling results at Atlas have driven a 62% (90 PJ) increase in 2P gas reserves to 234 PJ, with continued Roma North production outperformance driving a 10% (25 PJ) increase in 2P gas reserves to 283 PJ. Other reserves estimate highlights include:

• Surat Basin 1P (proved) gas reserves up 109 PJ (108%) to 210 PJ
• Surat Basin 2P (proved and probable) gas reserves up 127 PJ (21%) to 739 PJ
• Surat Basin 3P (proved, probable and possible) gas reserves up 105 PJ (12%) to 995 PJ
• Cooper Basin 2P reserves replacement ratio of ~100% achieved; 2P reserves steady at 7.3 mmboe
• Total Senex 2P oil and gas reserves up 127 PJe (19%) to 781 PJe (134 mmboe) as at 30 June 2020

Senex Managing Director and CEO Ian Davies said Senex’s major Surat Basin reserves upgrade follows the successful delivery of its transformational natural gas developments.

“FY20 was a year focused on successful execution of our $400 million Surat Basin developments, which delivered outstanding project delivery performance, continued gas production outperformance, and now material upgrades in booked natural gas reserves.

“With gas processing infrastructure established and a growing reserves base, Senex has now successfully delivered on the foundations to achieve continued growth in production, earnings and cashflow from its valuable east coast Surat Basin natural gas position”, Mr Davies said.

1 Independently assessed by Netherland Sewell & Associates (NSAI) and DeGolyer and MacNaughton (D&M)

Surat Basin

Surat Basin natural gas reserves upgrades have been driven by excellent appraisal and development drilling results at Atlas and continued Roma North production outperformance. Daily production has increased from ~7 TJ/day at the start of FY20 and now exceeds 37 TJ/day, tracking rapidly towards Senex’s initial production target of 48 TJ/day.

Appraisal and development drilling and gas production performance in FY20 has underpinned major increases in booked gas reserves in the Surat Basin, including a 108% increase in 1P gas reserves to 210 PJ. 2P and 3P gas reserves are now estimated at 739 PJ and 995 PJ respectively.

Surat Basin 2P gas reserves of 739 PJ represent over 40 years of natural gas production at the initial target rate of 48 TJ/day, providing material opportunities for gas production acceleration and expansion.

Surat Basin - Atlas

Atlas recorded a 90 PJ (62%) increase in 2P gas reserves to 234 PJ, largely attributable to:

• Better than expected drilling results from the 45 well campaign, which indicated larger than originally assumed net coal intersections and gas in place estimates;
• Strong initial reservoir performance since production commenced in late December 2019, which confirmed increased estimates of coal permeability; and
• Successful appraisal drilling in the southeast of Atlas (Atlas 60), which indicated high permeability consistent with current production in the north-west of the block.

Atlas Original Gas in Place (OGIP) gas been estimated at 435 PJ (previously 427 PJ). Successful testing of wells in the FY20 drilling campaign, including appraisal well Atlas 60, has substantially improved the outlook on recoverability, with the Atlas 2P gas reserves recovery estimate increasing to 54% (previously 46%). Atlas 2P gas reserves of 234 PJ represents over 20 years of natural gas production at the initial target rate of 32 TJ/day.

Surat Basin - Roma North

Roma North recorded a 25 PJ (10%) increase in 2P gas reserves to 283 PJ following continued strong production and reservoir performance. Performance of the gas processing facility has been excellent, with facility uptime above expectations, and throughput debottlenecked to 18 TJ/day (from 16 TJ/day).

Roma North 2P gas reserves of 283 PJ represents almost 50 years of natural gas production at an initial rate of 16 TJ/day, and over 30 years following expansion of the gas processing facility to 24 TJ/day.

Surat Basin - Western Surat

Material running room for further appraisal and development activity remains in the broader Western Surat acreage beyond Roma North, with a further 222 PJ of 2P reserves booked, up from 210 PJ.

Cooper Basin

In the Cooper Basin, a 2P reserves replacement ratio of ~100% was achieved following strong reservoir performance from the Gemba gas field and continued strong production performance at the Growler and Snatcher oil fields, partially offset by a downward revision at the Snatcher North oil field following the unsuccessful delineation of a potential northern extension.

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