Natural Resources Minister Dr Anthony Lynham announced at APPEA 2017 in Perth in May that his government would offer two Surat blocks covering 395sq.km for domgas use, after offering a smaller 58sq.km of land in January.

 

Senex's new acreage is located near Wandoan and Miles, near wells that produce for Queensland's LNG megaprojects.

 

"The area where Senex plans to operate is considered highly prospective as it sits within a region where a high volume of gas production is already underway," Dr Lynham said.

 

He said in January that with the Northern Gas Pipeline which will connect the Northern Territory to Queensland not due for completion until next year, securing energy supplies was critical.

 

The new areas will mean significant commitments from Senex, which expects to invest more than $200 million to drill about 100 wells and build supporting infrastructure, creating about 150 jobs in the process.

 

The company must now negotiate land access agreements and fulfil all existing environmental and Native Title requirements before the Petroleum Lease is granted and work can start.

 

"Senex prides itself on its track record to hire and buy locally when possible," Senex CEO Ian Davies said.

 

The company plans to engage and sign gas supply contracts with domestic gas customers early next year and obtain regulatory approvals in mid-2018, targeting first gas for 2019.

 

Davies said the team at Senex would work closely with Queensland's government, the Department of Natural Resources and Mines and other government departments, landowners, Native Title holders and the local community and businesses to successfully deliver the project.

 

A second tendering opportunity will shortly be announced for two areas in the Bowen and Surat basins.

 

"We are working to increase supply to the gas market and encouraging new local entrants. I would encourage companies to make their bids to develop these new areas," Dr Lynham said.