Senex, Origin Complete Farm-in For Two Gas Blocks

Senex Energy and Origin Energy have completed the two farm-in agreements announced on 24 February 2014, after all conditions precedent were satisfied.

As a result, the Senex-operated joint venture in each are (Area A and Area B Deeps) will now prepare a detailed work program to evaluate the tight gas sands in South Australia’s Cooper- Eromanga Basin, Senex said in a statement Monday.

The two gas blocks comprise a number of prospective sub-basins within the Cooper-Eromanga Basin - including the Allunga, Nappamerri and Patchawarra troughs - and provide exposure to multiple unconventional play types including tight sands, shale and deep coal seams

The two key areas cover 1,935 square kilometres (478,000 acres), with two-stage work programs in both areas involving aggregate expenditure of up to $252 million.

Separately, Senex and Origin have reached agreement with the third party in the Area B Deeps joint venture, Planet Gas Limited, for each of Senex and Origin to increase its interest in the Area B Deeps joint venture by funding Planet’s share of the Stage 1 and Stage 2 work programs.