Senex and Origin Energy Complete Gas Farm-in Transactions

Source Press Release
Company Senex Energy LimitedOrigin Energy LimitedPlanet Gas Limited 
Tags Asset Deals, Deals, Tight Gas & Liquids, Shale Oil, Shale Gas, Upstream Activities
Date June 30, 2014

Senex Energy Limited (Senex, ASX: SXY) and  Origin Energy Limited (Origin, ASX: ORG) have completed the two farm-in agreements announced on 24 February 2014, after all conditions precedent were satisfied.

As a result, the Senex-operated joint venture in each area (Area A and Area B Deeps) will now prepare a detailed work program to evaluate the tight gas sands in South Australia’s Cooper-Eromanga Basin. The two key areas cover 1,935 square kilometres (478,000 acres) as illustrated in Figure 1, with two-stage work programs in both areas involving aggregate expenditure of up to $252 million.

Separately, Senex and Origin have reached agreement with the third party in the Area B Deeps joint venture, Planet Gas Limited (Planet, ASX: PGS), for each of Senex and Origin to increase its interest in the Area B Deeps joint venture by funding Planet’s share of the Stage 1 and Stage 2 work programs.

The expected spend, and resulting interests, of the parties through the two stage work programs in Area A and Area B Deeps are set out in Table 1.

  AREA A   AREA B   TOTAL  
Petroleum exploration
licence (PEL) 
PEL 637
(excised from PEL 516)
and PRL 106 (excised from
PEL 115) 
PEL 638 – Deeps (excised
from PEL 514)  
 
Area  1,031 km2
(255,000 acres) 
904 km2
(223,000 acres) 
Stage 1 work program Funding and
participating interest 
$65 million
Senex: Free carried
(60% and operator)
Origin: $65 million (40%) 
$40 million
Senex: $4 million1
(53.75% and operator)
Origin: $36 million (33.75%)
Planet: Free carried (12.5%) 
$105 million  
Stage 2 work program Funding and
participating interest 
$40 million
Senex: Free carried
(50% and operator)
Origin: $40 million (50%) 
$40 million
Senex: $4 million1
(45% and operator)
Origin: $36 million (45%)
Planet: Free carried (10%) 
$80 million  
       
Additional Area B work program          Stage 1 and 2 work program (equity basis)   N/A   $67 million   $67 million  
Total work program   $105 million    $147 million   $252 million  

 1.Senex’s share of funding for Planet’s share of Area B work programs. Refer Planet announcement of 30 June 2014.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd