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FIN RESOURCES LIMITED — Capital/Financing Update 2013
May 14, 2013
64920_rns_2013-05-14_a73e9c94-bfa4-4268-84b1-93f902d99e4e.pdf
Capital/Financing Update
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ASX Announcement
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Major new conventional gas field identified at Hornet
Release Date: 15 May 2013
Senex Energy Limited (Senex, ASX: SXY) has identified up to 2.9 trillion cubic feet (Tcf) of prospective resource in a conventional stratigraphic reservoir, including 141 billion cubic feet (Bcf) of 1C contingent resource, in a new gas field named Hornet (refer Figure 1). The field is located less than 30 kilometres from the APA Group Moomba to Sydney gas pipeline.
Table 1 describes Senex’s net contingent and prospective resources (estimated recoverable gas, net of CO2 and fuel) identified within the same continuous stratigraphic trap in the Mettika Embayment in southern Cooper Basin permits PEL 115 (Senex 80% and Operator; Orca Energy Limited (Orca, ASX: OGY) 20%) and PEL 516 (Senex 100%).
Table 1: Hornet resource estimate (net to Senex)
| Contingent resource | Prospective resource2 | Prospective resource2 | |
|---|---|---|---|
| 1C | High estimate | Best estimate | Low estimate |
| 141 Bcf1 | 2,949 Bcf | 771 Bcf | 183 Bcf |
1 1,000 Bcf = 1 Tcf 2 Prospective resource includes contingent resource
Figure 1: Hornet Gas Field
Senex Energy Limited Head Office ABN 50 008 942 827 Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane Qld 4001
T +61 7 3837 9900 F +61 7 3837 9999
[email protected] Page 1 of 3 senexenergy.com.au
ASX Announcement
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ABOUT HORNET GAS FIELD
Recently acquired production logging data obtained from the Kingston Rule-1 and Hornet-1 wells confirm the existence of a conventional, tight gas reservoir at an average depth of 2,500 metres in the Mettika Embayment in the southern Cooper Basin.
The wells have recently flowed gas at stabilised rates up to 2.2 million standard cubic feet per day ( mmscfd ) and are located in the PEL 115 Hornet Block. PEL 115 Hornet Block is approximately seven kilometres southeast of Kidman gas field, operated by Santos Limited on behalf of the South Australian Cooper Basin Joint Venture ( SACBJV ), and 15 kilometres northeast of the Toolachee gas field, also operated by Santos.
The gas accumulation is defined within a stratigraphic trap that extends both to the north, south and east from PEL 115 Hornet Block into Senex’s 100% owned PEL 516. Much of this area is covered by 3D seismic and close spaced 2D seismic. In addition, 37 wells have been drilled by the SACBJV within the Hornet Gas Field resource area, providing rigorous subsurface control.
Interpretation of geological and geophysical data indicates the gas accumulation intersected by these wells has reservoir characteristics similar to many existing Santos operated fields that produce conventional gas from the Patchawarra Formation.
Senex is now planning an appraisal program to confirm the extent of the Hornet Gas Field and provide information required for early commercialisation. This work will consider issues such as drilling and subsurface design to optimise flow rates and ultimate economic recovery which will determine field economics.
Senex Managing Director Ian Davies said the field was well placed for early commercialisation.
“The shallow depth, low CO2, proximity to pipeline infrastructure with available capacity, and conventional reservoir characteristics of this resource are advantageous for early commercialisation.
“We have a high level of confidence about the nature of this accumulation because of the strong control provided by a large number of wells that have been previously drilled in the area by Senex and others including the Santos operated South Australian Cooper Basin Joint Venture. The next step is to optimise well design to achieve commercial flow rates and gas recovery, with our first appraisal well spudding early in the September quarter,” he said.
Competent person statement
Unless otherwise indicated, the statements contained in this announcement about Senex’s reserves and resources estimates have been compiled by Mr James Crowley BSc (Hons), who is General Manager – Exploration and Development, a full time employee of Senex, in accordance with the definitions and guidelines in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers (SPE PRMS). Mr Crowley consents to the inclusion of the estimates in the form and context in which they appear. Senex’s reserves and resources are consistent with the SPE PRMS.
Senex Energy Limited Head Office ABN 50 008 942 827 Level 14, 144 Edward St, Brisbane Qld 4000 T +61 7 3837 9900 [email protected] Page 2 of 3 GPO Box 2233, Brisbane Qld 4001 F +61 7 3837 9999 senexenergy.com.au
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ASX Announcement
Figure 2: Hornet gas field proximity to infrastructure
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For further information contact: Ian Davies
Managing Director Senex Energy Limited Phone: (07) 3837 9900
Andrew Barber
Corporate Affairs Manager Senex Energy Limited Phone: (07) 3335 9821 or 0418 783 701
Senex Energy Limited Head Office ABN 50 008 942 827 Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane Qld 4001
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T +61 7 3837 9900 [email protected] F +61 7 3837 9999 senexenergy.com.au