Senex Energy Ltd. and the QGC joint venture (JV) have completed the Surat Basin gas asset swap transaction announced on Sept. 10, 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 in Australia for a 100% interest in and operatorship of three QGC JV western Surat Basin permits. 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 recognized a net increase of 56 MMboe over proved and probable reserves (2P) at June 30, 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.

Senex is rapidly progressing planning and appraisal activities in the Western Surat to achieve an early investment decision on a commercial gas project over its acreage. The company expects to commence pilot production as early as possible but no later than the end of 2017, with early appraisal results to inform the larger scale investment decision. Senex has committed up to $40 million of capex in the project’s first three years of tenure. Senex expects minimal expenditure in fiscal year 2015 as initial activities will focus on planning to safeguard the success of the project.