Senex Energy Ltd. and GLNG have completed the transaction to develop the Western Surat Gas Project in Queensland, Senex said in a news release.

Senex received $42 million in cash and a suite of subsurface, production and other technical data, in exchange for the sale of the Maisey Block to GLNG, the Santos-led partnership with partners Petronas, Total and KOGAS. In addition, Senex will supply up to 50 TJ/day (47.4 MMcf/d) of sales gas from its Western Surat Gas Project to GLNG under a binding 20-year gas sales agreement, the release said.

Senex said the project represents a near-term opportunity to develop a major new revenue stream from a large 2P reserve base in a strategically located gas-producing region. The combined effect of the two agreements is to significantly de-risk the advancement of the project by delivering a clear commercialization and financing pathway, allowing access to GLNG infrastructure, and providing valuable subsurface data.

“The gas sales agreement we have struck with GLNG gives us optionality over our gas profile, allowing us to stage development and ramp up volumes to ensure the optimum economic outcome for the project,” Senex Managing Director Ian Davies said in the release. “We are hard at work defining the economic and operating parameters of the project and will commence on the ground appraisal activities in the second half of FY16.”