Name of the Project
Project Atlas.

Location
The project is located south-east of Wandoan, in Queensland’s Surat basin, in Australia.

Project Owner/s
Senex Energy.

Project Description
Project Atlas is a top-tier resource that is expected to produce material volumes of gas for the Australian market. The primary objective of the development programme is to reach plateau production of 32 TJ/d, or about two-million barrels of oil equivalent a day, with an additional 8 TJ/d of installed redundant capacity available.

Maintenance wells will then be drilled on an ongoing basis to sustain plateau production.

Infrastructure operator Jemena plans to partner with Senex Energy on the accelerated development of the project. Under the agree­ment, Jemena will build, own and operate a gas processing facility with an initial capacity of 40 TJ/d and a 60 km pipeline to process and transport gas from Project Atlas through the Darling Downs pipeline to the Wallumbilla hub.

Potential Job Creation
The project is expected to create 100 jobs over the life of the project.

Capital Expenditure
A capital spend of A$220-million to A$250-million was approved in October 2018.

Planned Start/End Date
Delivery of first gas to the domestic market is scheduled for late 2019.

Latest Developments
Senex Energy has signed the first domestic gas sales supply contract at its Project Atlas development.

The company has agreed to a domestic gas sales agreement for up to 3.25 PJ of natural gas with fellow-listed CSR, which will use the gas in its three manufacturing plants servicing the construction industry.

Under the initial three-year agreement, Senex will supply CSR with 0.65 PJ/y of gas, starting in January 2020. CSR could extend the agreement by up to a further two years, taking the total contract quantity to 3.25 PJ.

The gas will be supplied at the Wallumbilla gas hub, in Queensland, at a fixed price in line with current market levels, and indexed yearly.

Meanwhile, Senex will start its Surat basin gas drilling programme in May, after contracting services provider Easternwell, with completion of the initial drilling programme planned for mid-2020.

“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, cash-flow and earnings for Senex, and deliver much needed gas to the east coast market,” Senex MD and CEO Ian Davies has said.

Senex has partnered with major infrastructure provider Jemena to build, own and operate the Project Atlas gas processing facility. Civil works are under way on this facility.

Key Contracts and Suppliers
Jemena (construction contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Senex Energy investor relations head Tess Palmer, tel +61 7 3335 9719.