Senex, Origin strike gas agreement

Oz duo: Done deal

Senex Energy and Origin Energy have completed two farm-in agreements announced earlier this year.

All the conditions were satisfied to allow the farm-in agreements to go ahead for two key areas in the Cooper-Eromanga basin.

The Senex-operated joint venture in Area A and Area B Deeps will now prepare a detailed work programme to evaluate tight gas sands.

Senex’s two areas cover 1935 square kilometres, with two-stage work programmes in both areas involving expenditure of up to $252 million.

Senex and Origin have reached an agreement with a third party in the Area B Deeps joint venture, Planet Gas for both of the parties to increase their interest in the area.

In return, the companies will pay for Planet’s share of the Stage One and Stage Two work programmes.

The Stage One work programme across the two areas is set to be worth $105 million, while Stage Two is set at $80 million.

There is potential for another $67 million in expenditure for Area B.

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