Senex Energy (ASX: SXY) has increased its proved and probable coal seam gas reserves in the Surat Basin, Queensland, by 75% to 138.1 petajoules, or about 130.2 billion cubic feet of gas.
It said the upgrade demonstrated the value of its Surat Basin assets, which could supply gas to both the emerging coal seam gas to liquefied natural gas projects and domestic markets, where prices have been steadily rising.
The independent estimate by MHA Petroleum Consultants also increased proved, probable and possible reserves to 314 petajoules from 249.1 petajoules on 30 June 2011 with further upside present in the best estimate contingent resource of 205.4 petajoules.
Data from Senex’s drilling programs in ATP 771P and ATP 593P in the western Surat Basin northwest of Roma as well as PL 171 and ATP 574P in the eastern Surat that are surrounded by permits that are currently being developed to supply LNG projects, were used to develop the estimate.
The upgrade also comes just a little more than a week after coal seam gas to liquefied natural gas developer QGC sold off its 8% stake in Senex for A$78.6 million.
Senex said it would continue focused field appraisal and production testing through the 2012/13 financial year.
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