Senex Energy (Senex, the Company) achieved a number of progress milestones during the March quarter. Key highlights during the period include:
- Cooper Basin oil and gas portfolio: continued high grading of exploration and development activities, including lower risk near-field oil exploration drilling at the Dunoon Ridge and the first phase of secondary recovery at the Growler field.
- Unconventional gas joint ventures with Origin Energy (Cooper Basin): progressing the stage 1 $105 million guaranteed work program, with tight gas plays across a range of horizons, 3D seismic surveys progressed, and agreed preliminary well design and long lead drilling items.
- Western Surat Gas Project (Surat Basin): continued planning for pilot production testing and appraisal activities, initiation of the environmental approvals process, and concept select engineering under way. The concept select study is expected to be closely followed by the front end engineering design phase.
- Unsecured corporate debt facility of $80 million established subsequent to the end of the period, strengthening the Company’s liquidity profile and financial flexibility. Senex held a cash balance of $63 million as at 31 March 2015 with total liquidity of $143 million, and no requirement to draw down on the facility. In addition to hedging instruments for sales in the second half of FY15, Senex put a series of oil hedges in place for a portion of sales revenues in the 2016 financial year.
- FY15 capital expenditure guidance: further revised down to between $80 and $85 million, from the $85 to $90 million guidance provided in January1. Senex expects to drill 14 wells for FY15 for the Cooper Basin business in line with current capital allocation criteria. Detailed planning is underway for the FY16 growth agenda.
- FY15 full year production guidance: following a material reduction in expenditure and activity in H2 FY15, Senex expects full year production of between 1.36 mmboe and 1.41 mmboe. Further, three oil wells – Martlet North-1, Growler-14 and Dunoon-3 – have been cased and suspended pending completion and tie-in to production facilities. Given operational and capital efficiency considerations, production from these wells is expected in Q1 FY16.
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