Senex Energy (ASX:SXY) has revealed that the Hornet-1 gas well in South Australia is in pre-commissioning ahead of first gas sales.
Senex has completed a flow test during which gas flowed to surface at a rate of more than two million cubic feet per day.
The well has been completed for production and the surface facilities, including the separation equipment and flowlines, have been installed.
The pipeline connecting the Hornet field to the Santos-operated South Australian Cooper Basin Joint Venture network at the Allambi field is ready for commissioning.
The gas sales agreement provides for the supply of unprocessed raw gas on a discretionary basis from the Hornet gas field within PEL 115, with up to 10 million standard cubic feet per day to be supplied.
This allows flexibility to monetise the appraisal of the Hornet field through an extended flow test, without the risk of penalties for non-delivery.
The Hornet-1 unconventional gas exploration well was drilled by Victoria Petroleum in 2004, with gas shows observed in the Epsilon and Patchawarra Formations.
In 2013 Senex completed multi-zone fracture stimulation and subsequent production logging, which confirmed the existence of a conventional tight gas reservoir, with gas accumulation defined within a stratigraphic trap.
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