Senex Energy Limited (ASX: SXY) has announced that it has obtained an award of Project Atlas petroleum facility licence from the Queensland Government. Project Atlas is a top tier resource which as per company’s earlier announcement (29th October 2018) is expected to produce material volumes of gas for the domestic market. The primary objective of the project is to reach a production of 32 tonne Joule per day (TJ/day) with additional 8TJ/day of energy with previously installed redundant capacity.
The organization focuses on every single administrative endorsement by mid-2019. For the same aim the company has satisfied all the requirements as per Environment Protection and Biodiversity Conservation act 1999 (EPBC), confirmed by Department of the Environment and Energy. The company is in progress to obtain remaining approvals required by the Queensland Government for Project Atlas, with all environmental authority applications submitted to the state as per the 21st January 2019 announcement.
In the recent announcement made by the company on 14th February 2019, Natural resources, Mines and Energy Minister, Dr. Anthony Lynham has announced the award of a petroleum facility licence to Jemena for construction of the 40 Terajoule per day gas processing facility at Project Atlas.
The work program incorporates a 40TJ/day gas preparing facility and a 60Km pipeline associated with the Wallumbilla Hub. The organization likewise reported that the Jemena would manufacture, possess and Operate this framework, with commissioning expected by 2019 end.
As per the company’s Quarterly report published on 31st December 2018, the gas production at Roma North has increased by 33% quarter-on-quarter with the daily rate reaching 5.7 TJ per day during the quarter. The semi-annual production was up by 49% from 374 Kboe to 557 Kboe with an increase in both oil and gas production. The organization additionally shut a $150 million obligation facility, and Gemba-1 recouped 44 million standard cubic feet of gas and 88 barrels of oil on test.
The company posted sales of 264 Kboe which was in line with the previous quarter, generated $17.2 million revenue from sales proceeds, which was significantly down from last quarter. A dip of 33% in revenue was noticed amid low Brent oil prices and the accrual accounting impact of oil price decline. Gross capital expenditure was seen at $38.8 million and Net capital expenditure incurred was $25.7 million primarily due to drilling activity in the Cooper Basic and construction activity for the Roma North Pipeline and gas processing facility and development planning for Project Atlas. As per the organization report, Senex kept up a dominant liquidity position to support the development goal of the organization, with the net cash reserves of $39.0 million at quarter end.
The company took the hedging during the quarter to protect the cash flows from the operational activities and liquidity, required for capital investment in the Surat Basin. An aggregate of 810,000 barrels of oil was supported for the period Financial year 19 to financial year 21 utilizing swaps with the strike price between A$93/bbl and A$98/bbl.
The company might be able to take advantage of betterment in the global economy which is expected to support crude oil prices with its various projects.
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