Australian Senex 3Q Revenue Down 34%

Australia's Senex Energy has reported 3Q2017 revenue of A$11mn (US$8.25mn), down 34% year on year due to temporary mechanical issues on several wells as sales volume during the quarter was down 29% to 170,000 barrels, the company said April 26.

Senex expects annual production volumes of between 750,000 - 800,000 barrels of oil equivalent in FY17 given these temporary mechanical failures on wells and the performance of Worrior-11, which is performing below expectations, impacting second half production.

During the quarter, first gas production was achieved from the Glenora pilot project, with gas sales to Gladstone LNG starting from April 2017. Senex also sanctioned a A$50mn 30-well work program on its Western Surat Gas project, which will deliver material gas by mid-2018. Drilling will commence on the Eos block in May 2017 and run over the course of the calendar year, with first wells expected online in mid-2017.

In Cooper Basin, where Senex is in joint venture with Origin for unconventional hydrocarbons, it is proceeding to drill the horizontal section on Silver Star-1 gas exploration well. “The joint venture has determined that Silver Star-1 successfully meets the pre-defined reservoir thresholds and is drilling a horizontal section of up to 1,500 metres. Multi-stage fracture stimulation and testing of the well will follow,” Senex said.

Senex is carried free by Origin for its share of expenditure on the agreed A$105mn work program under that Senex-Origin farm-in arrangement.

Shardul Sharma