Senex Energy is set to commence drilling of the Silver Star-1 onshore gas exploration well in the South Australian Cooper basin, targeting material gas volumes.
The Silver Star-1 well is expected to cost approximately AU$15 million and forms part of the work program being progressed by Senex in a joint venture with Origin Energy.
Senex managing director and CEO Ian Davies said the drilling program reflected its continued commitment to onshore gas exploration and to building an opportunity pipeline capable of delivering significant gas volumes to market.
“The Silver Star-1 well is an exciting step in the Senex and Origin exploration project agreed in 2014 to unlock material high-risk gas acreage in the South Australian Cooper basin. The areas on which we are focused have multi-Tcf potential, and gas exploration programs such as this are crucial to unlocking more supply for the east coast market,” Davies said.
Silver Star-1 in which Senex has 53.75% operating interest and partners Origin and Planet Gas hold 33.75% and 12.5%, respectively, is the first drilling location in the northern area of Senex’s joint venture with Origin.
It is a staged program targeting material volumes of basin-centered and stratigraphic gas in the Patchawarra and Allunga Troughs.
Senex is free carried by Origin under the Senex-Origin farm-in arrangement. The aggregate project expenditure under the arrangement is up to $252 million, of which $105 million will be deployed on the first stage work program, including Silver Star-1.
The well is a high impact gas exploration well located in the northern Cooper basin and is expected to be drilled to a depth of approximately 3600m, with a potential lateral section of up to 1500m.
The total cost of Silver Star-1 is estimated at approximately $15 million. The well follows the drilling of Efficient-1 and Ethereal-1 in the southern Cooper basin, which were both cased and suspended having successfully intersected stratigraphically trapped tight gas in the Permian sandstones.
The Ethereal-1 well was fracture stimulated and production tested, with the next step to complete a nitrogen lift test to increase gas production.
Image: Map of Senex's unconventional joint ventures with Origin / Senex