Oil and Gas News

Senex achieves first gas production at Project Atlas

Senex Energy has delivered first gas production at Project Atlas in Queensland, with natural gas flowing immediately for the operator.

The Project Atlas drilling campaign started in August 2019 and 11 wells of the 60-well campaign have now been drilled and completed, according to Senex.

Project Atlas includes a 15 petajoule per annum gas processing facility and a 60 kilometres buried pipeline to the Wallumbilla Hub.

As announced last week, Jemena completed construction of the pipeline and is nearing completion of the gas facility.

Prior to commissioning and start-up this quarter, Project Atlas gas will be produced to flare.

Senex managing director and chief executive Ian Davies said first gas production from Project Atlas was a major achievement.

“Senex was granted the Petroleum Lease for Project Atlas in March 2018. The delivery of a greenfield natural gas development in 18 months is an outstanding achievement,” Davies said.

“The remainder of 2019 will be active and exciting as we bring more wells online, commission the gas facility and increase production to meet sales agreements commencing 1 January 2020.”

Natural gas from Project Atlas will supply major Queensland manufacturers, including CSR, Orora and O-I.

Senex has contracted most of its expected gas production volumes in 2020, with more contracts currently under negotiation.

Queensland Resources Council chief executive Ian Macfarlane said the achievement from Brisbane-based Senex was testament to the diversity of Queensland’s gas industry and getting the state’s policy settings to promote development of gas for local use

“Queensland has both large and small producers such as Senex supplying gas which allows all gas fields to be developed. Everyone benefits when we develop our gas responsibly,” Macfarlane said.

Senex and its partners continue to meet all development milestones for the Project Atlas and Roma North work programs, the comapny added.

The development targets will deliver a Surat Basin gas production rate of 18 petajoules per annum by the end of 2021 financial year, with low cost expansion options.

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