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Senex FY17 revenue dips

By  Tuesday, 25 July 2017 20:56
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Brisbane-based Senex Energy recorded full year FY17 sales revenue of AU$43.6 million, down from $69.3 million in full year FY16, reflecting lower sales volumes and lower realized oil prices.

The firm’s sales revenue was $9.9 million for the June quarter, on 160,000 bbl of oil sold, down marginally from the 170,000 bbl sold in the March quarter.

Total full year oil production was 0.75 MMboe compared to 1.01 MMboe delivered in FY16.

CEO Ian Davies said Senex exits FY17 strongly positioned to take advantage of opportunities in the east coast gas market.

“During the final quarter of the year we commenced a capital investment program on the Western Surat Gas Project with several progress milestones already met,” he said.

“This project represents a near term opportunity to develop a major new revenue stream for Senex, delivering new molecules into the structurally short east coast gas market.”

During the final quarter, Senex commenced the Phase 2 work program on the Western Surat Gas Project onshore Queensland, expected to deliver material gas by mid-2018. It involved drilling the first of 30 wells, located across the Glenora and Eos blocks.

Furthermore, Senex commenced an infrastructure project to bring the Cooper basin’s Vanessa gas field online during FY18, which will connect the field to the Santos-operated Moomba processing plant. Senex is currently in discussions with potential domestic customers for these gas volumes.

The firm also drilled the high impact gas well Silver Star-1 to a target depth of around 5000m during the June quarter, intersecting gas saturated sandstones. Mechanical issues were encountered while running casing through the Patchawarra coal measures, and the joint venture including Origin Energy is evaluating the forward work program.

On 25 July, Senex announced that it made a Birkhead oil discovery on the western flank of the South Australian Cooper basin, with the Marauder-1 well flowing at 655 bo/d on a drill stem test.

Davies said the group continues to see substantial untapped potential on the western flank and this area will be the focus for much of the FY18 exploration, appraisal and development program in the oil business.

During 1H FY17, Senex recorded lower revenue of $22.8 million, primarily driven by low oil prices, and production was 410,000 boe, down 24% as a result of natural field decline and significantly lower capital expenditure over the previous two financial years.

Image: Ian Davies

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