Senex Energy has entered into a binding agreement with Australia Pacific LNG to acquire undeveloped gas fields PL 209 and PL 445, adjacent to Senex’s Atlas natural gas development, for $80 million with Atlas production to increase to 30 PJ/year in 2024.

Key points

• Senex plans to expand Atlas production (including PL 209 and PL 445) to a 30 PJ/year plateau in CY24 (currently expanding to 18 PJ/year), comprising half of the end-FY25 production target of 60 PJe/year1
• PL 209 and PL 445 include a 77 km2 development-ready Northern Area, comparable in reservoir quality to the adjacent Atlas field, and a 77 km2 Southern Area requiring future appraisal
• Estimated Ultimate Recoverable (EUR) volume of 184 PJ in Northern Area2, with additional ~600 PJ estimated gas-in-place in Southern Area requiring future appraisal
• No existing gas supply obligations or domestic marketing commitments providing portfolio flexibility
• Initial acquisition cost of $50 million, with a further $30 million payment upon receipt of satisfactory Commonwealth environmental approvals, funded from an acquisition bridge facility and existing cash and debt facilities

Managing Director and CEO Ian Davies said the acquisition increased the quality and scale of Senex’s natural gas supply portfolio, providing portfolio flexibility to further support Senex’s customers and increase supply to the east coast gas market.

“The acquisition of these undeveloped gas fields adjacent to Atlas continues Senex’s growth trajectory in the Surat Basin and reinforces the company’s low-cost, hub-and-spoke infrastructure operating model.

“Atlas is a high-quality development, providing reliable, affordable and sustainable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Mr Davies said.

Senex natural gas portfolio and organic growth plans

In August 2021, Senex announced FID for the expansion of Atlas gas production by 50% to 18 PJ/year. This acquisition will allow the further expansion of Atlas to plateau production of 30 PJ/year in 2024. 

KeyFacts Energy: Senex Australia country profile