Senex Says Field Operations Remain Uninterrupted

Australian producer Senex Energy March 27 said field operations and work programmes are currently proceeding with minimal disruption following the implementation of Covid-19 protocols and business continuity measures.

The company expects no change to estimated production of 1.8-2mn boe and earnings of A$40-50mn (US$24.3-30.4mn) for the year to June 2020 (FY2020). Gas production in the Surat Basin continues to perform well as Roma North and Atlas production ramps towards the initial capacity of 48 terajoules/day, Senex said. Surat Basin gas production has now reached 27 terajoules/day.

“Senex is in a strong financial position to complete our transformational Surat Basin gas projects and begin generating material free cash flow,” CEO Ian Davies said. “Our low-cost operating model, diversified revenue streams and 100% operated asset position provide full discretion in respect of growth capital expenditure, and we will continue to be very disciplined in our approach.”

In the Cooper Basin, over 500,000 barrels of oil production is hedged for the 18-month period to June 30, 2021, at prices between A$90-95/b. At Roma North, the oil-linked gas sales agreement with GLNG has downside price protection built into the contract and delivers positive operating cash flow at below US$15/b and gas revenue of more than A$5/gigajoules at current spot oil prices (US$27/b) and exchange rates, the company said.

At Atlas, over 60% of expected gas production through to the end of the calendar year 2022 is contracted at fixed prices while 95% of Surat Basin gas production is contracted for the calendar year 2020, Senex said.