Senex Energy Commenced Civil Works For 110 Well Drilling Campaign in Surat Basin

SXY

Senex Energy Ltd (ASX: SXY) is an oil and gas exploration and production company. The company holds extensive onshore oil and gas acreage in the Cooper and Surat Basins and has experience of over thirty years. The company is advancing with several gas projects, which includes the Western Surat Gas Project and Project Atlas in Queensland.

The company today on 20th March 2019, announced that it started civil works for ~110 wells drilling campaign in its Surat Basin natural gas development projects. It comprises construction of well pads and access roads for the entire program across the Roma North and Project Atlas developments. Senex has awarded the contract to T&W Earthmoving, a local and experienced supplier, for initial well pads and access roads. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Both Project Atlas and Roma North continue to advance as per schedule, including long-lead items ordered for wellhead skids, well site generators and drilling and completion items. The tenders received for the drilling rig and well site services with contracts will be awarded shortly. The drilling campaign will start in Q4 FY19. The Roma North gas facility is on-track with commissioning to begin in mid-2019. The Project Atlas first gas production is on-track for the end of 2019.

The Managing Director and CEO of the company, Ian Davies commented on the progress of the company. He stated that the civil work is an indication of the commencement of the comprehensive drilling program of the company in the Surat Basin. The company is glad to award a local Queensland supplier with a significant contract related to the civil works. This activity enhances the momentum of the natural gas projects of the company and continues the transformation of its business with key milestones to follow in the months going forward.

The company in its FY19 half-year financial results has reported strong earning fundamentals. The company has improved results underpinned by higher production, sales volumes and pricing, leading to improved underlying NPAT. Sensex improved its EBITDAX margin on the back of ongoing cost control. The statutory net loss after tax has significantly improved to $4.5 million in H1 FY19 as compared to $82.3 million loss in the prior corresponding period of H1 FY18, driven by no impairment charges in the current reporting period. The underlying NPAT was higher than statutory NPAT due to current period impact of the Beach transaction ($5.9 million expense). However, the company kept its full-year capital expenditure guidance for FY19 unchanged at $110 to $130 million.

By the end of the trading session, (as on 20 March 2019). The stock of Senex Energy Ltd stood at a price of A$0.360, down by 1.37% from the previous close, with a market capitalization of ~A$ 530.34 Mn. The stock has generated a YTD return of 35.85% and returns of -21.74%, 9.09% and -1.37% over the past six, three and one-month periods, respectively. It had a 52-week high price of $0.535 and a 52-week low price of $0.262, with an average trading volume of ~4.59 million.


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