Senex Energy is selling its South Australian Cooper Basin gas assets for
$87.5 million as it focuses on Queensland project growth.
The sale to Beach Energy will result in Senex’s exit from the Cooper Basin after more than 20 years.
The company said it would support plans to accelerate the development of its Surat Basin natural gas assets, increasing the supply of natural gas to the east coast to support manufacturing and jobs.
Senex last month announced it was increasing its Roma North gas production by 50 per cent, just weeks after announcing a similar boost for the Atlas domestic gas project.
About 50 construction jobs are set to be created in the $30 million-plus project to expand the Roma North natural gas processing facility, drill more wells and build supporting infrastructure.
The plans to lift natural gas production from its Atlas project in the Surat Basin by 50 per cent are expected to create more than 100 jobs.
“The sale of our Cooper Basin assets will strengthen Senex’s balance sheet to accelerate the development of our material Surat Basin natural gas asset position,” managing director and chief executive officer Ian Davies said.
“Senex is uniquely positioned to increase supply of affordable natural gas to the domestic market.
“Our hub-and-spoke infrastructure operating model is established in the Surat Basin, and we have a diverse portfolio of low-risk, high-return investment opportunities to pursue from our extensive gas reserves position.
“The sale of our Cooper Basin assets follows a deliberate and considered strategic review of Senex’s asset portfolio.
“Beach’s existing operations and experience in the Cooper Basin, including as joint venture partner in our western flank oil assets, means it is ideally placed to acquire these assets and ensure a smooth transition and
ongoing stewardship, as well as providing a number of ongoing employment opportunities.”
Sale completion is expected in early 2021. It is subject to customary
conditions, including Senex financier consents and regulatory approvals.