Senex Energy has finished operations on its latest Roma North drilling campaign in the Surat Basin, Queensland.
With an initial 50 natural gas wells, Roma North is expected to supply natural gas for the next 30 years.
The completed campaign included drilling of 35 wells, which produced industry leading cycle times and well costs, according to Senex.
“We are very pleased to have successfully completed the current Roma North drilling campaign. With production nearing the plant’s initial capacity of 16 TJ/day, we are currently reviewing requirements for future drilling,” Senex managing director and CEO Ian Davies said.
“We are now focussed on completing the Atlas drilling campaign by the end of FY20. Atlas production continues to ramp, with 95 per cent of expected volumes for calendar year 2020 contracted to high quality customers at fixed prices.”
Despite the market decline, Senex has also cemented a healthy financial position with oil production hedged at US$70 a barrel (AU$95/bbl).
The company reported $123 million in cash reserves for December 31 2019, with more than 300,000 barrels of 2021 financial year oil production also hedged at $US67/bbl (A$90/bbl).
“Senex is in a very strong financial position, with revenue well protected from oil price declines through a proactive and material oil hedging program strong fixed price gas contracts from Atlas,” Davies said.