Senex today announced its FY17 results and plans for FY18, including a growth and returns focused capital investment program of $80 to $100 million which prioritises the Western Surat Gas Project and the western flank oil business in the Cooper Basin.
Key FY17 results for Senex against the prior year included:
- Solid safety and environmental performance, including no recordable incidents or notices for the Western Surat Gas Project;
- Production of 0.75 mmboe, down 26%, reflecting natural field decline and capital expenditure deferral in the lower oil price environment;
- Statutory net loss of $22.7 million, a 32% improvement on FY16, and consistent with an improving operating environment and focus on cost control; and
- Cash balance of $134.8 million, up 32 per cent, following a successful capital raising in February 2017 and ongoing focus on cash management.
Senex Managing Director and Chief Executive Officer, Ian Davies, commented, “When oil prices dived in late 2014, Senex sharpened its focus on east coast gas because we recognised the market opportunity created by Queensland’s LNG exporters and domestic energy users.
“Senex is entering the 2018 financial year in a strong position having made significant progress against our strategy. Our 2018 investment program is designed to deliver low-risk returns from the oil business while advancing Senex’s gas projects, especially the Western Surat Gas Project in Queensland, which is on track to ramp up production next year,” he said.
Of the company’s FY18 capital investment program, between $45 and $55 million will be invested to advance Senex’s Western Surat Gas Project located 30 kilometres north of Roma. The company also expects to make investment decisions on the project’s next phase of gas drilling and sales gas infrastructure during the year.
“It’s going to be a breakthrough year ahead for Senex. We expect growth in production and we are emerging from the energy downturn well funded and well positioned to be part of the future solution to the east coast gas shortage,” Mr Davies said.