Senex shares jumped almost 10 per cent this morning after the company said the State Government had awarded it the status on acreage that included a site adjacent to its existing Atlas development in the Surat Basin.
It was also named preferred tenderer for “high potential” exploration acreage in the Bowen Basin.
Senex said the new Atlas acreage would enable rapid expansion of gas production to about 18 petajoules a year, an increase of 50 per cent.
Managing director Ian Davies said the company was uniquely positioned to contribute to Australia’s gas-fired recovery from the COVID-19 recession.
He said Senex also had an agreement with Jemena to expand its processing facility at Atlas by 50 per cent and expected additional volume to flow in 2022.
The gas is aimed at the domestic market and Senex was involved in ongoing marketing with Queensland manufacturers and other users.
Davies said the company was a material new entrant in the domestic market which had high barriers to entry.
“We are increasing the flow of natural gas to the east coast to help the manufacturing sector and we are here for the long term,” Davies said.
“The Queensland Government award of acreage to Senex strengthens our ability to leverage our established hub-and-spoke infrastructure model for accelerated supply of affordable natural gas to the domestic market.”
The company’s award in the Bowen Basin was for 486 sq km located between the Scotia and Meridian fields and close to existing infrastructure.
It will carry out a four-year work program at the site.
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