Senex Cooper gas flow too slow for market BY:MATT CHAMBERS From:The Australian March 12, 2013 12:00AM Increase Text Size Decrease Text Size Print
COOPER Basin gas explorer Senex Energy has confirmed flows of 1.2 million cubic feet a day at its Kingston Rule-1 well in central Australia that is targeting tight gas sands in the Patchewarra formation of the basin.
The well is the latest in a string of successes for the Cooper Basin's gas explorers, which are using the hydraulic fracturing and, in some cases, horizontal drilling techniques that drove the US shale gas revolution.
Gas flow from the well, which is in South Australia near the Queensland border, was constrained by a half-inch choke.
"Initial gas flow rates have met and exceeded the prime objective of mobilising significant gas to surface from a tight sand reservoir," Senex managing director Ian Davies said. "This result confirms our confidence in the Cooper Basin as a world-class energy precinct."
Despite the good news, Senex shares finished flat yesterday because the flows were not as strong as some analysts had hoped. However, the stock is up 25 per cent in the past two weeks, partly because Chevron's recent Cooper Basin farm-in deal with Beach Energy has raised hopes that Senex will be the next junior to strike a deal with a major.
Senex said wellhead pressure continued to grow at Kingston Rule, and samples had also been taken to measure condensate and "heavy gas".
Senex is targeting mainly tight gas sands, which -- with coal-seam gas and shale -- make up the "unconventional" gas sources being chased onshore.
AQO Price at posting:
22.0¢ Sentiment: ST Buy Disclosure: Held
