Senex performing well against market

The Western Surat Gas Project.

The Western Surat Gas Project.

Senex Energy has demonstrated a strong fiscal position amid tough industry conditions, thanks to a $42 million cash injection in December 2015 on the back of sales to GLNG. 

The mid-cap explorer now has a healthy cash balance of $99.6 million, up by 87 per cent on the previous quarter. However, the company’s net production slid by 7 per cent, down to of 0.26 MMboe, with natural field decline mostly offset by the contribution of new wells.

The company’s Growler-14 and Martlet North-1 wells, located in the Cooper Basin, overall contributed a full quarter of production, having been brought online in August and September 2015 respectively. The Spitfire-7 well was brought online in October.

Senex said that it remains on track to deliver full year oil and gas production of between 1.0 and 1.2 MMboe. The company expects to bring the Vanessa-1ST and Martlet-2 wells online during Q3 FY16.

The company’s Western Surat Gas Project stood as a strong performer, which was responsible for Senex receiving $42 million in cash and a comprehensive suite of subsurface, production and other technical data, in exchange for the sale of the Maisey block to GLNG.
In addition, the parties have signed a binding 20-year gas sales agreement under which Senex will supply up to 50 TJ/day of sales gas from its Western Surat Gas Project to GLNG.

The combined effect of the two agreements is to significantly de-risk the advancement of the project by delivering a clear commercialisation and financing pathway, allowing access to GLNG infrastructure, and providing valuable subsurface data.

Following the finalisation of this transformational transaction and the sale of the Maisey block, Senex is considering multiple appraisal and development options for the asset. This will involve the interrogation of gas and water data provided in December from over 250 GLNG pilot and production wells, as well as investigating options for the commercialisation of pilot production.

Critical path items to achieve first gas production by the end of 2017 are underway and on schedule. These include land access and cultural heritage clearance activities, as well as reservoir characterisation analysis, down-hole reviews and engineering design.

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