Senex Energy (Senex, ASX: SXY) has been granted a Petroleum Lease and preliminary environmental approvals from the Queensland Government to develop Project Atlas for domestic gas supply.
Project Atlas is a high quality coal seam gas permit located south east of Wandoan in Queensland's Surat Basin (see Figure 1). Senex was awarded the permit by the Queensland Government in September 2017 following a competitive tender.
The grant of the Petroleum Lease is a key milestone for the project, providing Senex on-ground access to progress environmental studies and other preliminary activities for the development of approximately 100 wells and associated infrastructure.
Senex expects to receive all remaining State and Commonwealth approvals in mid-2019, with delivery of first gas to the domestic market targeted for late 2019.
Commenting on the significant progress already achieved, Managing Director and CEO Ian Davies said:
“We are in detailed discussions with parties to provide gas processing infrastructure, have materially progressed financing discussions with prospective lenders, and look forward to engaging with domestic gas customers in the near term.
“The direct award of a Petroleum Lease for Project Atlas is an innovative solution by the Queensland Government to help address the shortage of new east coast gas supply”, he said