Senex Energy Limited (Senex, ASX:SXY) has responded quickly to the sharp increase in the Brent oil price, securing a series of put options for the first half of the 2017 financial year.
The put options provide revenue protection over 400,000 barrels of oil, without limiting Senex’s exposure to the upside from higher oil prices. These put options guarantee a Brent oil floor price of US$45 per barrel (~A$62 equivalent) over the six month period, and Senex will fully participate in any rise in Brent oil prices above this level. The details of the hedging program are below.
Senex Managing Director Ian Davies said the implementation of the program provides downside risk protection and allows the Company to cover its operating and corporate cash costs as well as lock in a margin on its oil sales.
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