Senex Energy Limited and the QGC JV1 have completed the Surat Basin gas asset swap transaction announced on 10 September 2014.
Under the terms of the agreement, Senex has exchanged its minority interests in QGC operated eastern Surat Basin gas permits ATP 574 and PL 171 for a 100% interest in and operatorship of three QGC JV western Surat Basin permits2. No cash consideration was payable by any party in respect of the tenement transfers.
The new acreage lies adjacent to Senex's existing western Surat Basin permits ATP 771P and ATP 593P and forms the core of the company's new Western Surat Gas Project. As a result of the transaction, Senex has recognised a net increase of 56 million barrels of oil equivalent (mmboe) over proved and probable reserves (2P) at 30 June 2014, and now holds net 2P gas reserves of 83 mmboe. The reserves of the QGC JV permits received under the gas asset swap have been independently assessed by Netherland, Sewell and Associates Inc (NSAI).