Senex Energy Limited (Senex, ASX:SXY) has signed a gas sales agreement (GSA) with the Santos-operated South Australian Cooper Basin Joint Venture (SACB JV) for the supply of raw gas over two years from the Hornet gas field in the southern Cooper-Eromanga Basin.
The GSA provides for the supply of unprocessed raw gas on a discretionary basis from the Hornet gas field within PEL 115 (Senex 100%), with up to 10 million standard cubic feet per day (Maximum Daily Quantity) to be supplied commencing in the September quarter of 2014. This allows Senex the flexibility to monetise the gas during the appraisal stage without the risk of penalties for non-delivery.
The raw gas comprises natural gas, condensate and LPG, and Senex will be paid for each component. Pricing for condensate and LPG will be linked to international product pricing, less specific transport and processing charges. Pricing for natural gas is confidential.
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