PERTH (miningweekly.com) – ASX-listed Senex Energy has brought the first 30 appraisal wells on line as part of its Phase 2 investment in the Western Surat gas project, in Queensland.
The company in February this year announced that it would invest A$50-million in the 30-well drilling campaign to further its understanding of the resource.
Of the 30 wells in the Phase 2 programme, 24 have already been drilled, with the remainder to be completed in the coming months.
MD and CEO Ian Davies told shareholders on Monday that the company was confident of completing the Phase 2 programme on budget.
“We know that cost management is a key driver of value on the Western Surat gas project, and the Phase 2 work programme has provided us the opportunity to test and embed our processes ahead of a full field development.
“We are on track to achieve our cost target of A$1.2-million per installed well on this work programme, with Senex achieving excellent performance in partnership with its preferred suppliers.”
All 30 wells were expected to be in production by the end of the year, and Senex was expecting production from the Phase 2 wells to conform to the typical profile of coal seam gas wells, with dewatering to precede a steady increase in gas production rates.
The Western Surat gas project is expected to support up to 425 wells over its life.