Senex Energy Ltd., Brisbane, has taken final investment decision (FID) for the proposed $40 million (Aus.) expansion of its Atlas coal seam gas project in southeast Queensland.
Atlas gas production is to be expanded by 50% to 18 petajoules/year from the current 12 petajoules/year.
The investment will be spent on new gas wells along with gas gathering and water management infrastructure and funded from existing cash reserves.
Drilling is expected to begin in September in conjunction with the company’s Roma North program to the west and gas sales will begin increasing in the next 12 months.
Senex is finalizing arrangements with Jemena to construct and fund the Atlas processing plant expansion under an extension of the existing tolling arrangements with commissioning expected during the first quarter of the 2023 financial year.
Atlas has existing 2P reserves of 270 petajoules, sufficient for 15 years life.
The expansion is supported by recent manufacturer gas sales agreements.
Ian Davies, managing director and chief executive officer, said Atlas expansion, which will take the company’s production capacity to 27 petajoules/year, is another step in the drive to reach production of 60 petajoules /year from its portfolio by the end of the 2025 financial year.
