SENEX ENERGY - Net proved (1P) reserves of 12.1 mmboe, up 7.8 mmboe or 181% compared to 30 June 2015, driven by first time booking of 1P reserves in the Surat Basin
- Net proved plus probable (2P) reserves of 83.4 mmboe, up 11.1 mmboe or 15% compared to 30 June 2015 (net of the sale of the Maisey block in the Surat Basin)
Organic three year 2P oil reserves replacement ratio of 104%; organic three year 2P oil and gas reserves replacement ratio of 370%
In the Surat Basin, the signing of a 20 year gas sales agreement with GLNG and provision of offsetting well data in the neighbouring Roma field has led to inaugural 1P reserve bookings. The analysis of this data in combination with progress in field development planning also led to increased 2P bookings on a broad basis across the project acreage, with an in depth review of the GLNG Roma field data resulting in increased confidence in gas volumes and project economics.
In the Cooper Basin, a year of lower field activity driven by capital conservation measures has resulted in minor upward revisions in 1P and 2P estimates before accounting for production of 1.01 mmboe for the year. The Company has revised down Cooper Basin contingent resources by 39% to 208.0 mmboe, primarily relating to unconventional gas plays.
1P reserves - mmboe 1P reserves by product 1P reserves by geography12.1
5.1
5.5
4.2
4.3
Gas 71%
Oil 29%
Surat
Cooper Basin 31%
2012 2013 2014 2015 2016
Basin 69%
2P reserves - mmboe 2P reserves by product83.4
1
72.4
37.4
39.9
31.6
Oil 12%
Gas 88%
2P reserves by geographyCooper Basin 13%
Surat Basin 87%
2012 2013 2014 2015 2016
Following sale of Maisey block in the Surat Basin (22.2 net mmboe)
Senex Energy Limited ABN 50 008 942 827 ASX : SXY
Head Office
Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane, Qld, Australia 4001
Phone +61 7 3335 9000
Facsimile +61 7 3335 9999
Web www.senexenergy.com.au
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Cooper Basin 31%
Surat
Surat Basin Net reserves and Contingent resources Cooper Basin Net reserves and Contingent resourcesPJs | 30 June 2015 | Maisey sale | Revision | 30 June 2016 |
1P reserves | - | - | 49 | 49 |
2P reserves | 489 | (131) | 69 | 427 |
2C resources | 55 | - | (27) | 28 |
mmboe | 30 June 2015 | Prodn | Revision | 30 June 2016 |
1P reserves | 4.3 | (1.0) | 0.5 | 3.8 |
2P reserves | 11.5 | (1.0) | 0.3 | 10.8 |
2C resources | 331.4 | - | (128.1) | 203.3 |
In September 2015 Senex and GLNG announced a series of strategic transactions for the development of the Western Surat Gas Project which included the sale of the Maisey block to GLNG for $42 million in cash, and a suite of subsurface and production data on GLNG's adjacent Roma field. Adjusting for the sale of the Maisey block, net 2P gas reserve estimates grew strongly, and net 1P reserves have been booked for the first time in the Surat Basin.
The booking of 1P reserves reflects a high level of confidence in the resource and the project.
Senex signed a binding 20 year Gas Sales Agreement with GLNG in September 2015, and has sanctioned an appraisal work program to de-risk overall development. Increased confidence in the reservoir has been gained through the analysis of production and subsurface data from over 250 adjacent GLNG wells on the Roma field, together with historical appraisal production and subsurface data from 100 wells on the project acreage.
The movement in 2P reserves has also been supported by field development planning work undertaken during the year. This work indicates that an increased proportion of previously identified volumes in place will be economically producible. The decrease in 2C contingent resource reflects conversion into 2P reserves.
NSAI have certified Senex's reserve and resource estimates in the Surat Basin. NSAI are an independent resource estimating firm which has been engaged to assess other CSG producers in the Surat Basin.
The movement in Cooper Basin 1P and 2P reserves was relatively minor, given the lower level of field activities undertaken during the year. After accounting for production of
mmboe, the movement reflected minor technical revisions across several fields based on individual performance and adjustments to future field development plans.
Revisions to 2C resources predominantly relate to the results of the Hornet-1 and
Kingston Rule-1 extended production tests, which were at the lower end of expectations primarily due to higher water saturation levels than forecast. With the benefit of this data, the areal extent of the Patchawarra play (over which 2C resources were estimated) has been reduced. This area is one of a number of unconventional gas plays the Company is pursuing, with a material exploration program being undertaken in joint venture with Origin Energy, under which Senex is free carried for its share of $105 million of expenditure.
2C resources are not currently estimated or booked for this project.
DeGolyer and MacNaughton (D&M) have certified Senex's reserve and resource estimates in the Cooper Basin. D&M are an independent resource estimating firm with considerable experience in the Cooper Basin.
Net Reserves and Contingent resources Proved reserves (1P) Proved plus probable reserves (2P)mmboe
Oil
Gas and gas liquids
Total
Developed
Undeveloped
Total
Surat Basin
-
8.3
8.3
-
8.3
8.3
Cooper Basin
3.5
0.3
3.8
3.3
0.5
3.8
Total
3.5
8.7
12.1
3.3
8.8
12.1
Proportion of total proved reserves that are unconventional (coal seam gas): 69%
Contingent resources (2C)mmboe
Oil
Gas and gas liquids
Total
Developed
Undeveloped
Total
Surat Basin
-
72.6
72.6
2.6
70.0
72.6
Cooper Basin
10.4
0.4
10.8
4.7
6.0
10.8
Total
10.4
73.0
83.4
7.4
76.0
83.4
Proportion of total proved plus probable reserves that are unconventional (coal seam gas): 87%
Reserves and Contingent resources movementmmboe
Oil
Gas and gas liquids
Total
Surat Basin
-
4.7
4.7
Cooper Basin
5.5
197.8
203.3
Total
5.5
202.5
208.0
mmboe
30 June 2015
Maisey sale
Production
Revisions
30 June 2016
Change
1P reserves
4.3
-
(1.0)
8.8
12.1
181%
2P reserves
94.6
(22.2)
(1.0)
12.1
83.4
(12%)
2C resources
340.7
-
-
(132.7)
208.0
(39%)
Numbers may not add due to rounding
NOTES TO THE ANNUAL RESERVES STATEMENTGOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
Senex estimates and reports its petroleum reserves and resources in accordance with the definitions and guidelines of the Petroleum Resources Management System 2007, published by the Society of Petroleum Engineers (SPE PRMS).
All estimates of petroleum reserves reported by Senex are prepared by, or under the supervision of, a qualified petroleum reserves and resources evaluator. To ensure the integrity and reliability of data used in the reserves estimation process, the raw data is reviewed and quality controlled by senior professional production, reservoir, petrophysical and geological staff at Senex. Access to the substantiated data is then restricted to authorised staff members. During each petroleum reserves review, this data is updated, analysed and checked against the previous year's data.
Senex has engaged the services of DeGolyer and MacNaughton (D&M), MHA Petroleum Consultants LLC (MHA) and Netherland Sewell Associates (NSAI) to independently assess the data and assess reserves and resources prior to Senex reporting any updated estimates.
Senex reviews and updates its oil reserves position on an annual basis and reports the updated estimates as of 30 June each year. Senex reviews and updates its gas reserves position as frequently as required by the magnitude of the petroleum reserves and changes indicated by new data.
QUALIFIED PETROLEUM RESERVES AND RESOURCES EVALUATOR STATEMENT
This reserves and resources statement is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, a qualified petroleum reserves and resources evaluator, Mr David Spring BSc (Hons). Mr Spring is a member of the Society of Petroleum Engineers and is Executive General Manager of Exploration. He is a full time employee of Senex.
Mr Spring has approved this statement as a whole and has provided written consent to the form and context in which the estimated reserves, resources and supporting information are presented.
SCOPE AND METHOD
Aggregation method: The method of aggregation used in calculating estimated reserves and resources was the arithmetic summation by category of reserves. As a result of the arithmetic aggregation of the field totals, the aggregate 1P estimate may be very conservative and the aggregate 3P estimate very optimistic, as the arithmetic method does not account for 'portfolio effects'.
Evaluation dates:
Cooper Basin oil reserves
D&M
30 June 2016
Cooper Basin oil contingent resources
D&M
30 June 2016
Cooper Basin gas reserves
D&M
30 June 2016
Cooper Basin gas contingent resources
D&M
30 June 2016
Surat Basin gas reserves and resources (Western Surat Gas Project)
NSAI
30 June 2016
Surat Basin gas reserves and resources (Don Juan)
MHA
19 July 2014
Gas conversion: In converting petajoules to million barrels of oil equivalent, Senex has applied the following conversion rates: Surat Basin gas: 1 mmboe = 5.880 PJ, Cooper Basin gas: 1 mmboe = 5.815 PJ
Method: The deterministic method was used to prepare the estimates of reserves, and the probabilistic method was used to prepare the estimates of resources in this statement.
Ownership: Unless otherwise stated, all references to reserves and resources in this statement relate to Senex's economic interest in those reserves and resources.
Reference points: Cooper Basin: Central processing plant at Moomba, South Australia. Surat Basin: Wallumbilla gas hub, approximately 45 kilometres south east of Roma, Queensland. Fuel, flare and vent consumed to the reference point are included in reserves estimates. Between 0% and 3% of 2P oil reserves estimates may be consumed as fuel in operations depending on operational requirements.
Reserves replacement ratio: Calculated as the summation of the estimated reserves additions and revisions divided by estimated production for the period 1 July 2013 to 30 June 2016, before acquisitions and divestment.
Sale of Maisey block: resulted in the reduction of 2P reserves by 22.2 mmboe and project land area by 77 km2
FURTHER INFORMATION
Investor Enquiries: Ian Davies Managing Director
Senex Energy Limited Phone: (07) 3335 9000
Tess Palmer
Investor Relations Manager Senex Energy Limited Phone: (07) 3335 9719
Media Enquiries: Karen Cottier
Corporate Communications Manager
Senex Energy Limited Phone: (07) 3335 9859
ABOUT SENEX ENERGY
Senex is a growth focused exploration and production company based in Brisbane. With a 30-year operating history, Senex holds extensive onshore oil and gas acreage in the Cooper and Surat Basins. Senex operates the majority of its assets, produces around one million barrels of oil annually, and is successfully developing a gas business including the Western Surat Gas Project in Queensland.
Senex Energy Limited published this content on 16 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 August 2016 23:25:03 UTC.
Original documenthttp://www.senexenergy.com.au/investor-centre/files/2016-annual-reserves-statement/
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