PERTH (miningweekly.com) – ASX-listed Senex Energy has started a A$15-million drilling campaign at its Silver Star-1 gas exploration well, in the South Australian Cooper basin.
MD and CEO Ian Davies on Tuesday said the drilling programme reflected the continued commitment to onshore gas exploration and to building an opportunity pipeline capable of delivering significant gas volumes to market.
“The Silver Star-1 well is an exciting step in the Senex and Origin Energy exploration project agreed in 2014, to unlock material high-risk gas acreage in the South Australian Cooper basin. The areas on which we are focused have a multi-trillion cubic feet potential, and gas exploration programmes such as this are crucial to unlocking more supply for the east coast market.”
The Silver Star-1 well, which is 53.7% held by Senex, is the first drilling location in the northern area of the company’s joint venture with Origin, and is targeting material volumes of basin centered and stratigraphic gas in the Patchawarra and Allunga troughs.
Senex is free carried under the farm-in agreement, with the project expenditure arrangement covering up to A$252-million, of which A$105-million will be deployed on the first stage work programme, including on Silver Star-1.