Senex Energy (ASX:SXY) sells Cooper Basin to Beach Energy (ASX:BPT) for $87.5M

• After more than 20 years, Senex Energy (SXY) will sell its South Australian Copper Basin assets to Beach Energy (BPT) for $87.5 million
• The company has decided to focus on developing its assets in the Surat Basin
• With the new focus, Senex is in a strong position as an important and independent supplier of natural gas to the east coast market
• On completion of the sale, Beach Energy will be the sole operator in the Western Flank
• The sale is expected to be completed in early 2021
• On the market this morning, Senex shares remain untouched and trading for 28.5 cents, while Beach is up 3.91 per cent and is trading for $1.20

Senex Energy (SXY) has plans to sell its South Australian Copper Basin assets to Beach Energy (BPT) for $87.5 million.

The sale will see Senex leave the Cooper Basin after more than 20 years as it plans to develop its Surat Basin natural gas assets.

The company has successfully delivered the $400 million Surat Basin natural gas developments and this sale will further strengthen its balance sheet. Senex is expecting a proforma net cash position of approximately $30 million.

With the focus on Surat Basin, the company is now in a strong position as an important and independent supplier of natural gas to the east coast market.

Managing Director and CEO, Ian Davies, said this move is a milestone in the evolution of Senex.

“Senex is uniquely positioned to increase supply of affordable natural gas to the domestic market. Our hub-and-spoke infrastructure operating model is established in the Surat Basin, and we have a diverse portfolio of low-risk, high-return investment opportunities to pursue from our extensive gas reserves position,” he said.

“The sale of our Cooper Basin assets follows a deliberate and considered strategic review of Senex’s asset portfolio,” he added.

Beach Energy will see its portfolio in Cooper Basin expand and once the purchase is complete it will be the sole operator in the Western Flank and associated infrastructure.

“From a Beach perspective, this was a logical acquisition given our proven track record of extracting value from permits we operate, combined with the fact we are building on our extensive position in the Western Flank across the South Australian Cooper Basin,” Beach Energy Managing Director Matt Kay said.

The sale is expected to be completed in early 2021 and is subject to customary conditions.

On the market this morning, Senex shares remain untouched and trading for 28.5 cents, while Beach is up 3.91 per cent and is trading for $1.20 at 10:00 am AEDT.