In September 2017, Senex was awarded prime CSG acreage by the Queensland Government, known as Project Atlas.
The acreage contains 201 PJ of recoverable gas from highly productive coal seams, which is scheduled to be delivered to the domestic east coast market from 2019.
The accelerated development of Project Atlas along with the Western Surat Gas Project (WSGP) and Cooper Basin core assets will deliver a step-change in production and earnings for Senex from 2019.
As such, Senex has undertaken a comprehensive review of its asset portfolio to focus business on these opportunities, and will prioritise capital allocation as follows:
- Successful development of Senex’s suite of east coast development projects, including Project Atlas, WSGP and the Cooper Basin Vanessa field
- Disciplined exploration, appraisal and development of Cooper Basin western flank oil assets
- Unconventional gas exploration opportunities in the Cooper Basin in joint venture with Beach Energy, while those activities are free carried by Beach under the Lattice Energy arrangements (approximately $43 million of committed funds remaining)
- Other opportunities that complement strategic priorities.
Senex expects to recognise an accounting non-cash impairment charge of $80 million in its 2018 half year accounts.
It has also commenced a process to rationalise non-core Cooper Basin assets, which may include divestment, farm-down or relinquishment.