Senex posts profits, announces new partnership

Oil producer and explorer Senex Energy Ltd has posted a record underlying profit today, reporting $31.8 million for the second half of 2013.

Gross profits dating to 31 Dec 2013 were up 26 per cent, recorded at $51.3 million, while net profits were up 9 per cent to $25.6 billion.

The EBITDAX was reported being up 33% to $46.9 million, with no debt and $102.5 million strong in cash and cash equivalent position.

Senex has also secured a 15-year government petroleum retention licence scheme over 10,000 square kilometres of group-operated oil exploration permits in the South Australian Cooper-Eromanga Basin.

Senex reports that the discovery of five new oil accumulations will deliver increases in production during the remainder of the 2014 financial year, with new wells coming online.

An announcement by Senex today has revealed a new agreement has been struck between Senex and Origin Energy, to farm out works and evaluate tight gas sands in the southern Cooper-Eromanga Basin in South Australia.

The project will involve a two-stage work program valued at up to $252 million ($185 million with additional work expenditure up to $67 million), involving the drilling of at least 15 wells and substantial 2D and 3D seismic acquisition programs.

The first stage will evaluate the potential of tight gas sands, provide exposure to shales and deep coal seams, and provide proof of concept.

The second stage will evaluate the commerciality of the gas resource by undertaking extended flow testing.

Senex will retain operatorship of the permits during both stages of the work program, with Origin having the option to become an operator following completion of stage two.

Senex managing director Ian Davies said that Origin is the ideal partner to help commercialise the unconventional gas potential in the Cooper-Eromanga Basin.

“Origin has built an unrivalled position in the eastern Australian gas market and has access to international markets through its APLNG export facilities in Gladstone,” he said.

“Origin is a natural partner for Senex to accelerate the commercialisation of a potentially massive gas resource, especially given its long standing position in the South Australian Cooper Basin Joint Venture.”

Image: The Advertiser

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