Senex Welcomes South Australian Govt's $18.4M Pledge to Develop Gas Supply

Senex Energy Ltd. indicated Friday that it welcomed and supported the South Australian Government's commitment to provide $18.4 million (AUD 24 million) to the industry to extract and supply more gas to market.

"Given the regulatory challenges the oil and gas sector in Australia has experienced recently, it is encouraging to have a jurisdiction promoting exploration activity and enhancing competition. This program will help incentivize companies to develop gas resources and shows both long-term commitment and innovative thinking”, Ian Davies, managing director and CEO of Senex Energy said in the press release.

South Australian Premier Jay Weatherill announced Thursday that the State Government has introduced measures to increase energy market competition, drive down costs for businesses and consumers and reduce carbon emissions. Among the measures included a government pledge of $18.4 million for a program to incentivize companies to extract more gas and supply it to the local market.

By developing more supplies, the South Australia Government hopes to increase the supply of gas into the state's energy market, with energy generators, industry and households having first offering.

"Our industry has been weathering volatile commodity prices for a few years now as evidenced in the decrease of exploration and drilling activity. Introduction of this measure aims to restart such activity, and ultimately promote greater stability of supply to the market whilst also boosting local economies. It is a welcome measure," Davies added.