- Oil and gas company Senex Energy (SXY) has reported a 13 per cent increase in total oil and gas production for the September quarter
- Impressively, its Surat Basin assets produced 632,000 barrels of oil equivalent — a 22 per cent increase from the prior quarter
- Unfortunately, total sales revenue dropped eight per cent to $31.1 million due to the decline in oil price in the final quarter of FY20
- At the end of September, Senex had strong cash reserves of $70.4 million however this does mark a 12 per cent decrease from the July quarter
- A highlight for the company was being awarded preferred tenderer status for natural gas acreage in the Surat and Bowen basins
- Significantly, this allows Senex to increase gas production at Roma North by 50 per cent to 18 petajoules a year
- Senex is trading a slight 1.52 per cent in the red with shares priced at 32.5 cents
Oil and gas company Senex Energy (SXY) has kicked off the 2021 financial year with strong financials and ongoing production growth at its Surat Basin assets.
For the September quarter, total oil and gas production was 13 per cent higher than the July quarter, coming in at 803,000 barrels of oil equivalent (kboe).
Total sales volume also increased quarter-on quarter by 10 per cent to 724 kboe.
Impressively, the Surat Basin produced 632 kboe, which is a 22 per cent increase from the prior quarter. This was fuelled by daily production exceeding 44 terajoules per day and is set to move towards an initial nameplate capacity of 48 terajoules per day.
Unfortunately, total sales revenue dropped eight per cent from the July quarter to $31.1 million which Senex attributes to lower realised oil-linked Roma North gas prices following the decline in oil price in the final quarter of FY20 and planned maintenance at the Roma North gas facility.
At the end of the quarter, Senex had $70.4 million in cash reserves. However, it does represent a 12 per cent decline from the $79.9 million it ended the July quarter with.
Positively, Senex reported significantly lower capital expenditure for the quarter after it completed the Surat Basin gas developments in the July quarter. In Q1 FY21, the oil and gas company spent $7.9 million — a 77 per cent decrease from the previous quarter.
A highlight of the quarter was the Queensland Government awarding Senex preferred tenderer status for natural gas acreage in the Surat and Bowen basins.
Significantly, this allows the company to expand gas production at the Atlas block in the Surat Basin by 50 per cent to 48 terajoules per day, or roughly 18 petajoules per year. Additionally, preferred tenderer status within the Bowen Basin provides further scale and diversification to the company's natural gas portfolio.
"We are committed to investing for the long-term to unlock valuable gas resources, stimulate economic activity and create jobs," Managing Director and CEO Ian Davies said.
Along with its September quarterly, Senex also announced a final investment decision for the expansion of natural gas production at Roma North by 50 per cent to 24 terajoules per day, or nine petajoules per year.
"This low-cost, high-return and long-life investment is the first example of Senex’s high-quality investment opportunities," Ian stated.
Senex is trading a slight 1.52 per cent in the red with shares priced at 32.5 cents at 12:19 pm AEDT.