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Senex posts record profit

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Cooper Basin oil and gas producer/explorer Senex Energy posted as record half-year profit today.

The underlying profit of $31.8 million, up 37 per cent on the previous year, came off the back of  record group revenue of $88.3 million, up 14 per cent.

The company’s December 2013 half-year statement said it was on target to achieve full year production, reserves and capital expenditure guidance.

Senex has no debt and $102.5 million cash and cash equivalents.

Senex managing director Ian Davies said the results placed the company in a solid position for further exploration and production deals.

“This result is a significant step towards delivering another excellent set of full-year results,” he said.

“We expect production to increase in the remainder of FY14 following drilling success across our high margin Cooper-Eromanga oil fields.”

In the second half of 2013 Senex secured a strategic 15-year government petroleum retention licence scheme over 10,000 km² of group-operated oil exploration permits in the SA Cooper-Eromanga Basin

It also concluded a gas farm-out agreement with Origin Energy to deliver a multi-stage work program worth up to $252 million.

“The discovery of five new oil accumulations will deliver further increases in production over the remainder of the financial year as new wells are brought online,” the statement said.

“Record profitability was driven through solid production being delivered into high AUD oil prices.

“The gas farm-out agreement will see Senex free carried for its share of the first $185 million in two stages of a work program worth up to $252 million.”

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