Cooper Basin producer and explorer Senex Energy Limited upgraded its contingent gas resources today, citing analysis and interpretation of recent gas exploration results.
In a statement to the stock exchange the company quoted reports from independent estimators DeGolyer and MacNaughton.
The upgraded estimates included an upgrade of its Hornet conventional gas field that “resulted in the conversion of previously defined low, best and high prospective resources to higher confidence and lower risk contingent resources”.
Senex managing director Ian Davies said the upgrade was a major step forward for the company’s gas development strategy and increased the level of confidence in the quality of the resource in the South Australian Cooper Basin.
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Davies said Senex was in the process of evaluating potential development scenarios for the Hornet gas field and would look to introduce a partner at an early stage to aid with funding, marketing and technical expertise.
“Hornet continues to improve as we conduct further work and clearly has the potential to be a significant gas producing field. We are confident that 1C, 2C and 3C resources at Hornet can convert to material proved, probable and possible reserves once we appraise the field and achieve commercial flow rates to confirm project economics,” he said.
Davies said the resource upgrade positioned Senex as an obvious solution to predicted gas shortfalls in the east coast domestic gas market from 2016.
“Our work to date has identified a material resource base from which to develop a profitable Australian gas business servicing local and international energy demand. We will vigorously pursue commercial opportunities to develop these resources.”
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