Name and Location
South Australia southern Cooper-Eromanga basin exploration project, Australia.

Client
Senex Energy and Origin Energy.

Project Description
Senex Energy and Origin Energy have agreed to evaluate tight gas sands in key areas of South Australia’s southern Cooper-Eromanga basin.

Two farm-out agreements have been signed, providing exposure to tight gas sand, shale and deep coal plays:
• Area A (36% of total areas of PEL 516 and PEL 115 (Senex 100%); and
• Area B (47% of total area of PEL 514, Deeps only (Senex 80% and operator, Planet Gas 20%).

Area A comprises a 1 008 km² portion of PEL 516 and a 23 km² portion of PEL 115, in the southern South Australian Cooper basin. This allows for operations to focus on the tight gas prospectivity of the Allunga, Skipton and Nappamerri troughs.

The Area A work programmes will involve a 300 line kilometre two-dimensional seismic survey, the drilling of up to eight exploration and appraisal wells, fracture stimulation and flow testing. The first well is expected to be drilled within 12 months.

Area B comprises a 904 km² portion of the Permian system of PEL 514 (Deeps) in the Patchawarra trough, in the northern South Australian Cooper basin.

Value
The parties have agreed on a two-stage work programme, totalling $185-million, with additional work programme expenditure of up to $67-million, which is subject to operating committee approval.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Senex Energy investor relations manager, Andrew Barber, tel +61 7 3335 9821.
Origin Energy senior external affairs manager Stephen Ellaway, tel +61 2 9375 5834.