Page 15 - AsianOil Week 29 2021

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Senex signs new domestic gas supply deals

PROJECTS & AUSTRALIAN independent Senex Energy has year on year to 4.7 PJ. It noted that expansion
COMPANIES signed a long-term gas sales agreement with cement projects were underway, with initial Roma North
manufacturer Adbri for the supply up to 11 PJ. production expansion to 9 PJ per year expected
Under the agreement, which Senex announced to come online in the third quarter of this year.
on July 22, the independent has agreed to begin Senex noted: “[Front-end engineering and
supplying Adbri’s South Australian manufacturing design] FEED activities were completed for addi-
operations for seven years starting from January tional production expansion projects at both Atlas
2023. Senex said the gas would be supplied at a fixed and Roma North, with electrification studies
price that was “in line with current market levels”. underway at Roma North for a reduced carbon
With both companies celebrating the deal, footprint and increased operational efficiency.”
Adbri noted that the gas supplies would help it Oil and gas industry group the Australian
reduce the company’s carbon footprint. Petroleum Production and Exploration Associa-
Adbri CEO Nick Miller said: “We are pleased tion (APPEA) welcomed both the Adbri and Nyr-
to execute this long-term agreement that helps star deals, noting that they were further proof that
underpin our low-cost and low-carbon cement the domestic market was working as intended.
manufacturing operations in South Australia.” “These two GSAs announced in the past two
News of the deal with Adbri comes just days after days mean there have now been 106 agreements
Senex revealed that it had also finalised an agreement to supply gas to major domestic customers since
to supply 1.7 PJ of gas over three years from January 2012,” APPEA CEO Andrew McConville said.
2022 to Nyrstar’s South Australian metal process- He said the Adbri deal was “just another exam-
ing plant. Senex unveiled the Nyrstar deal in its sec- ple” of domestic manufacturing taking advan-
ond-quarter results, which were published on June 20, tage of “consistently lower gas prices since 2016”.
noting that the deal had been finalised at some point APPEA has been trying to head off federal
during the April-June period. and state government efforts to manipulate the
The developer also noted it had successfully market conditions. Canberra has been champi-
reached its targeted initial plateau gas produc- oning the goal of greater domestic gas supply and
tion in the quarter, with output increasing by 1% consumption to help drive an economic rally.™

Strike buys strategic stake in Warrego

FINANCE & AUSTRALIAN independent Strike Energy has a recent production test at the West Erregulla 4
INVESTMENT boosted its stake in the West Erregulla gas pro- (WE4) well.
ject to 54% through the acquisition of a strategic The partners said on July 12 that a series of flow
interest in Warrego Energy. tests had been performed at various choke settings
Strike said on July 20 that it had agreed to from a 75-metre perforated interval in the Kingia
pay around AUD22mn ($16.2mn) for the 8.16% Sandstone, with the top interval at 4,847 metres to
stake in Warrego, raising its share in both the the bottom section of 4,962 measured depth.
EP469 licence by 4%. Following the deal, Strike The primary flow period was conducted
will continue to operate West Erregulla with over a 46-hour period at a rate of 35mn cubic
54%, while Warrego will retain 46%. feet (991.2mn cubic metres) per day, with gas
The operator added that increasing its exposure sample analysis indicating that WE4 has a sim-
to West Erregulla was consistent with its strategy ilar gas composition to the WE2. The well did,
to “generate value from the Perth Basin”. However, however, produce a small amount of low salinity
it also moved to clarify that it had no interest in water during on test, with Strike noting that pro-
expanding its stake in Warrego at present. duction levels had dropped from around 50 to 37
Strike said: “[We are] comfortable with the barrels per 1 mmcf (28,320 cubic metres) during
level of investment in Warrego at this time and the main flow test period and that this level had
Strike will continue to consider value-accretive continued to decline prior to the well’s shut-in.
transactions from time to time should market Strike said it believed that the water was pro-
conditions allow.” duced from a localised perched water lens at the
The developer noted that it would use some of base of the porous section of the Kingia and that
the funds from its recent capital raising exercise it expected to confirm this during flow testing of
to finance the deal, adding that it remained fully the WE5 well, which is planned to begin late this
funded to deliver its work programmes in the month. Warrego, however, said its interpretation
second half of this year. was that water was entering the well at approxi-
News of the acquisition came after both mately 4,912 metres measured depth and that a gas
companies arrived at different interpretations of water contact might have been encountered. ™

Week 29 22•July•2021 www. NEWSBASE .com P15