Senex disciplined on FY16 spending

Senex CEO Ian Davies

Senex CEO Ian Davies

Senex Energy today revealed its FY16 outlook ahead of its results announcement on August 25.

The company outlined what it called, “a disciplined approach” to capital allocation and cash preservation while also focusing its energies on its Cooper Basin oil production and Western Surat Gas Project.

The firm stated that it will maintain financial stability through a reduced work program namely at the Cooper Basin and will continue to seek financing solutions for its Western Surat Gas Project.

Net production is expected to remain 1.0 – 1.2 Mmboe in the Cooper Basin over the outlook period.

The company is eyeing a capital saving in FY16 of up to $30 million.

Senex confirmed FY15 capital expenditure reached $92 million and is targeting FY16 expenditure ranging between $60 and $80 million.

Managing director Ian Davies said the company had its eye firmly fixed on improving financial position.

“Oil production in the Cooper Basin continues to deliver strong margins, even at low oil prices. When further capital is available and the oil pricing outlook has improved, we look forward to materially scaling up our work program in the Cooper Basin.”

Senex remains growth focused, and the prioritisation of our most material and advanced gas project represents a step change in the creation of a material gas business for Senex.”

The company stated that it plans to invest between $20 and $25 million on appraisal activities in the Western Surat Gas Project over the outlook period.

The activities will include commissioning a pilot production program with an eye to reach gas production of 35 to 50 terajoules per day by 2017. Full scale field development will follow an FID.

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