Senex Energy Limited

ASX removes Senex from the official list at close of trading on 4 April 2022, following implementation of the POSCO scheme. This completes the delisting flagged in the 1 April announcement.

registration revoked

The POSCO scheme is implemented: shareholders on the 25 March record date are sent A$4.60 cash per share. All prior directors and the company secretary David Pegg resign, replaced by K-A Energy nominees. Senex intends to apply for delisting from 4 April.

business combination

The Federal Court approves the scheme under which POSCO's nominee K-A Energy 1 will buy 100% of Senex at A$4.60 cash per share. Record date is 25 March and payment is expected 1 April 2022, following the 15 March shareholder vote.

business combination

Shareholders approve the POSCO scheme, with 93.77% of votes cast in favour and 75.89% of shareholders voting. Court approval is due 18 March, when trading is expected to be suspended; the A$4.60 cash is expected to be paid 1 April 2022.

business combination

The Federal Court approves sending out the Scheme Booklet and calling the 15 March 2022 shareholder meeting. The independent expert values shares at $4.17–$4.92 and finds the $4.60 offer fair and reasonable. The buyer is K-A Energy 1, 50.1% POSCO and 49.9% Hancock.

business combination

Senex completes the $80m purchase of undeveloped gas fields PL 209 and PL 445 from Australia Pacific LNG, next to Atlas. This satisfies one condition of the POSCO scheme; other conditions remain.

asset acquisition disposition

Senex signs a binding agreement for POSCO International to buy 100% of shares at A$4.60 cash, a 25% premium to 30-day VWAP, plus an intended dividend of up to 5c. The board unanimously recommends it; completion is expected late March 2022, subject to conditions including shareholder and FIRB approval.

business combination

POSCO International lifts its non-binding cash proposal to A$4.60 per share via a scheme of arrangement, and the board intends to unanimously recommend it, subject to conditions. Exclusivity runs to 26 November; a dividend of up to 5c is intended. Builds on the earlier approach.

business combination

Senex agrees to buy undeveloped gas fields PL 209 and PL 445 next to Atlas from Australia Pacific LNG for $80m ($50m upfront, $30m on environmental approvals). It plans to lift Atlas to 30 PJ/year in 2024; completion is expected early 2022.

asset acquisition disposition

Senex discloses takeover talks with Korea's POSCO International, whose non-binding proposals rose from A$4.00 to A$4.40 per share in cash. Exclusivity is extended to 5 November for a further proposal above A$4.40; no binding agreement yet.

business combination

Senex releases a Decarbonisation Action Plan targeting net zero operational emissions by 2040, with emissions-intensity cuts of 30% by FY25 and 75% by FY30 versus FY21. It restates the 60 PJe/year production target for end-FY25.

other

FY21 results: gas production 17.3 PJ, underlying EBITDA $54.5m, net cash $26m. Final dividend 5c takes FY21 total to 13c. FY22 guidance: production 21-23 PJ, EBITDA $75-85m, capex $70-80m, with ~85% of FY22 sales hedged at fixed prices.

investor presentation

Senex takes final investment decision on a ~$40m expansion of Atlas by 50% to 18 PJ/year, funded from cash, with Jemena building the plant expansion; commissioning expected Q1 FY23. Resolves the Atlas expansion thread; portfolio capacity rises to 27 PJ/year.

material agreement

Independently assessed Surat 1P reserves rose 24% to 261 PJ and 2P rose 4% to 767 PJ (3P 1,016 PJ), helped by the ATP 2059 award at Atlas. Updates the earlier 780 PJ 2P figure, which is now slightly lower after FY21 production.

resource reserve update

Senex signs a seven-year gas deal with cement maker Adbri for up to 11 PJ from January 2023 to 2030, at a fixed price in line with current market levels. Its longest customer contract so far in the story; almost 60 PJ signed since 2019.

contract award

Simon Ellinor, currently CFO of Sunwater and previously at Rio Tinto, is appointed CFO, expected to start August 2021. Resolves the CFO search; Mark McCabe moves to Chief Commercial Officer as previously announced.

director officer appointment

Senex completes the $87.5m sale of its Cooper Basin business to Beach, ending 20 years in the basin. Pro forma net cash is $33m, and the completion triggers the 0.5 cent special dividend. Resolves the main open Cooper thread.

asset acquisition disposition

Senex starts dividends earlier than promised (FY22): 0.5 cent interim plus a 0.5 cent special after the Cooper sale, paid 7 April 2021. Half-year gas output 8.0 PJ, up 271%; pro forma net cash $33m. FY21 EBITDA guidance now $30-40m; capex raised to $35-45m.

dividend declaration

Atlas reaches its 32 TJ/day (~12 PJ/year) firm nameplate capacity ahead of schedule, with 8 TJ/day of non-firm capacity also available. Completes the production milestones of the $400m Surat development; Atlas expansion could take it to 56 TJ/day.

production update

After the Cooper sale, Senex targets $85-95m annual EBITDA, $40-60m free cashflow, dividends from FY22 (20-30% of free cashflow) and >10 mmboe production by end FY25. Pro forma net cash ~$30m. A strategy reset to a gas-focused business.

investor presentation

Senex agrees to sell its South Australian Cooper Basin assets to Beach Energy for $87.5m cash, exiting the basin after 20+ years. Pro forma net cash about $30m. Effective 1 July 2020, completion expected early 2021, subject to financier and regulatory approvals.

asset acquisition disposition

Senex takes final investment decision to expand Roma North gas by 50% to 24 TJ/day (~9 PJ/year), online Q1 FY22. Net cost to Senex is $20m from existing cash; Jemena funds compression. Up to 15 wells; IRR >60%. Resolves the earlier expansion thread.

material agreement

Senex wins preferred tenderer status for 18 sq km of extra Atlas acreage and a 486 sq km Bowen Basin exploration block. Atlas output would rise 50% to ~18 PJ/year, adding 41 PJ of 2P reserves on grant of title, with the Jemena plant expanding to 48 TJ/day.

asset acquisition disposition

FY20 results: production up 73% to 2.1 mmboe, underlying EBITDA up 51% to $53m. FY21 guidance is 3.2-3.6 mmboe and EBITDA $65-75m. FY22 production target is raised to 3.6-4.1 mmboe, with free cashflow of $70-90m and net cash targeted by end FY22.

half year report

Senex expects a non-cash impairment of about $52m on Cooper Basin oil assets in FY20, after cutting its long-term Brent assumption to US$62.50/bbl, plus a $2.6m restructuring provision. The company says reserves and financing are unaffected. This follows the COVID-hit oil price fall.

other

Surat Basin 2P gas reserves rise 21% to 739 PJ at 30 June 2020 (from 612 PJ), led by Atlas up 62% to 234 PJ and Roma North up 10% to 283 PJ. Total Senex 2P is 781 PJe (134 mmboe), up 19%. Surat output now exceeds 37 TJ/day.

resource reserve update

The $400m Surat Basin development is declared complete, with 80 wells drilled against ~110 originally planned. Roma North is producing about 18 TJ/day and Atlas has exceeded 15 TJ/day toward a 32 TJ/day nameplate. Surat 2P reserves exceed 600 PJ.

production update

FY20 guidance is upgraded: production to 2.0-2.1 mmboe (from 1.8-2.0) and EBITDA to $45-55m (from $40-50m). About 1 PJ of Roma North gas is redirected from GLNG to the domestic market, and the Atlas campaign is cut further to 45 wells.

production update

Investor briefing targets FY22 production above 3.6 mmboe, EBITDA of $100-110m and free cashflow of $70-90m, with peak net debt under $80m in Q1 FY21. Surat well count is cut by over 20% to 85, saving about $15m net capex after a ~$15m Atlas water plant. Roma North hit 16 TJ/day.

investor presentation

Surat gas output reached 20 TJ/day: Roma North above 13.5 TJ/day and Atlas above 6.5 TJ/day. 49 wells are drilled and 33 are producing. New Atlas contracts take contracted volumes to over 32 PJ across six customers.

production update

Orora's Atlas gas deal expands by a further 9.9 PJ over six years from 2022 to 2027, bringing the total to 13.2 PJ at market price escalated by CPI. This extends supply well beyond the earlier two-year agreement.

material agreement

Project Atlas made its first gas sales, ahead of schedule, to Queensland-government-owned CleanCo on a fixed price until 30 June 2020. 23 of ~60 Atlas wells are drilled and 15 produce above 3 TJ/day. Plateau target is 12 PJ/year by end FY21.

production update

Gemba gas field (PEL 516, Senex 100%), discovered late 2018, is now on production after tie-in to the Santos-operated network, flowing ~4 mmscf/day constrained. Gas goes to Pelican Point under a fixed-price deal; about 0.1 mmboe is expected in FY20.

production update

First gas flowed from Project Atlas, with the first four wells online; 11 of ~60 wells are drilled. Gas goes to flare until Jemena's plant is commissioned this quarter. Sales to CSR, Orora and O-I start 1 January 2020.

production update

Oilex announced a binding term sheet to take all of Senex's operated interest in 27 Cooper Basin Northern Fairway PRLs (2,445 sq km), including the Paning tight gas discovery. Consideration is nominal, with Oilex assuming ~$1.1m rehabilitation and ~$1m annual fees. Conditions, including government approvals, apply.

asset acquisition disposition

EIG sold its remaining ~9.1% stake in Senex to institutional investors, ending its holding that began in early 2017. EIG says it remains bullish on Senex. Shareholders lose a major backer, though the shares went to other institutions.

security holder rights change

Senex completed the $50m sale of the Roma North gas plant and pipeline to Jemena after performance testing. It will pay a tolling tariff under a 21-year deal to 2040. This resolves the sale announced in June; the first compression train ran above 8 TJ/day.

asset acquisition disposition

Mark McCabe, previously CFO and Deputy CEO of Australia Pacific LNG for nine years, is appointed CFO, expected to start in early December. This fills the vacancy left by Gary Mallett, who resigned in June.

director officer appointment

Gemba-1 (PEL 516, Senex 100%) flowed a stable 5 mmscf/day in a five-day test after a seven-stage frac, with gas from all seven zones. It is to be tied in late 2019 and a $5.26m SA government grant supports the project.

well test result

FY19 results: production up 43% to 1.2 mmboe, revenue up 34% to $94m, underlying EBITDAX up 49% to $39m. 2P reserves 111.4 mmboe (down 2% from 113.2); 2C resources up 57% to 8.3 mmboe on Gemba and Growler. About $150m Surat capex planned in FY20.

annual report

CFO Gary Mallett resigned to move to Sydney and will stay until October 2019. The search for a replacement starts immediately. He arranged the ANZ debt facility, the Jemena deals and the hedging program.

director officer appointment

Senex agreed to sell the Roma North gas plant and pipeline to Jemena for $50m, paid on completion expected September 2019, and will pay a tolling tariff under a 21-year agreement. This resolves the plant sale-leaseback thread; Jemena will then own both plants.

asset acquisition disposition

Senex began its ~110-well Surat Basin gas drilling campaign, starting at Roma North and moving to Project Atlas after Q1 FY20. It targets about 18 PJ a year of gas by end FY21. Atlas gas sales to customers start 1 January 2020.

drilling spud

Senex won preferred tender status for a 153 sq km Surat Basin block (PLR2018-1-1) near Miles, subject to tenure grant. Three wells are committed in FY22-23, with minimal early capex, and all gas must be sold domestically. It is Senex's second government-awarded block after Atlas.

asset acquisition disposition

Roma North gas plant reached mechanical completion and began commissioning, on schedule and on budget. Initial capacity is 16 TJ/d, expandable to 24 TJ/d and up to 48 TJ/d. Processed gas to GLNG is expected by mid-year, resolving the plant-construction thread.

production update

Second Project Atlas gas sales agreement signed with Orora, for up to 9.9 PJ. The initial two years supply 3.3 PJ from January 2020, with a mechanism to extend six years for up to 6.6 PJ more, at a fixed price indexed annually.

material agreement

First Project Atlas gas sales agreement signed with CSR, for up to 3.25 PJ. The initial three years supply 0.65 PJ a year from 1 January 2020, at a fixed price indexed annually. This advances the Atlas gas sales thread targeted for mid-2019.

material agreement

Easternwell won the Surat Basin gas drilling contract, with drilling starting May 2019 and the initial program due to finish mid-2020. Senex can extend it up to two years in total. Contract value is within the capex guidance given in October 2018.

contract award

Queensland environmental approval for Project Atlas received, adding to the federal approval of January. This completes the environmental approvals and lets Senex move to full development, with Atlas commissioning by end 2019 and first gas sales after.

regulatory community update

Queensland awarded Jemena a petroleum facility licence to build the $140m, 40 TJ/d Project Atlas processing plant. Construction can start, and Senex says first gas by end 2019 stays on schedule.

regulatory community update

Gemba-1 (PEL 516, Senex 100%) flowed at a stabilised ~8 mmscfd after fracturing, with about 20% CO2. The pre-drill 15 Bcf recovery estimate may be exceeded. An extended test is planned for Q3 FY19, with possible first gas by end 2019.

well test result

Senex awarded the Roma North construction contract to Wasco, and civil works have started. It covers the 16 TJ/d gas plant and a 6km pipeline to GLNG infrastructure, with commissioning targeted for Q4 FY19. This follows the investment decision.

contract award

FY19 guidance: production of 1.1-1.5 mmboe (FY18: 0.84) and net capex of $110-130m (FY18: $80m). This delivers the guidance promised at financial close, with gas and new Cooper oil wells driving the growth.

other

Financial close of the $150m ANZ senior secured facility ($125m seven-year reserve-based limit, $25m working capital), with an initial cost of about 6%. Funds are available for drawdown, resolving the pending financing and clearing the way for Surat projects.

debt financing

Final investment decisions taken on Project Atlas and Roma North, with Surat Basin capex of $220-250m over FY19-FY21 and about 110 wells. Targets 3 mmboe a year of gas by end FY21 and 4 mmboe total; Atlas decision is subject to final approvals.

material agreement

Senex and GLNG split the Western Surat gas sales deal. Roma North (Glenora, Eos, Mimas, Tethys; 260 PJ 2P) goes to GLNG exclusively on FID, clearing the way for an initial 16 TJ/d project. The deadline for FID on the remaining acreage moves to September 2022.

material agreement

Senex guided to a ~$17m gain from completing the Beach unconventional gas JV termination, and ~$33m more impairment on non-core Cooper exploration acreage, taking FY18 impairment to $113m. This resolves the non-core rationalisation flagged earlier.

financial restatement

Breguet-1, first well of the FY19 campaign (ex PEL 104, Senex 60%/Beach 40%), found Birkhead oil: up to 5.7m net pay in an 18.5m column. It will be cased and suspended, with production expected Q2 FY19 and follow-up appraisal possible.

drilling result

Senex received Commonwealth EPBC approval for the Western Surat Gas Project, completing all primary approvals for initial Glenora and Eos development. Financial, commercial and contracting steps still remain before a final investment decision.

regulatory community update

At 30 June 2018, 2P reserves rose 35% to 113.2 mmboe and 1P rose 21% to 20.2 mmboe. Project Atlas made a maiden 2P booking of 144 PJ (24.5 mmboe). Cooper unconventional gas 2C resources were reclassified as prospective, so 2C fell to 5.3 mmboe.

resource reserve update

Senex signed a fully underwritten A$150m ANZ debt facility: A$125m seven-year reserve-based loan starting at about 6% interest, plus a A$25m working capital line. It funds Surat gas development, subject to final documentation. Delivers the mid-2018 financing target.

debt financing

Senex signed with Jemena to build, own and operate Project Atlas processing (40 TJ/d) and a ~60km pipeline, costing about A$140m funded by Jemena. Senex pays a tariff over 25 years. First gas targeted late 2019; resolves the Atlas gas processing talks.

material agreement

Gemba-1 (PEL 516, Senex 100%) found gas ahead of pre-drill expectations and was extended to 2,795m on gas shows in the Dullingari group. A frac and test program is targeted for early FY19; this ends the FY18 drilling program.

drilling result

Senex was granted a Petroleum Lease over the Glenora and Eos blocks, the initial development area of the Western Surat Gas Project. Two further leases and remaining approvals are still expected by mid-2018, moving the project towards development.

regulatory community update

Gary Mallett, formerly Origin Energy's Acting CFO, will join as CFO in May 2018. He replaces Graham Yerbury, who resigned to join a private-equity-backed mining business and will stay for the coming months to hand over.

director officer appointment

Senex and Beach agreed to move Beach's up to $43m free-carry commitment from Cooper unconventional gas to Senex-operated western flank oil permits (Senex 60%/Beach 40%). At least three horizontal development and seven exploration wells over about 18 months from early FY19. Lattice-earned gas interest reverts to Senex.

farm in farm out agreement

Senex was granted a Petroleum Lease and preliminary environmental approvals for Project Atlas, giving on-ground access for about 100 wells and associated infrastructure. It expected remaining approvals in mid-2019 and targeted first gas to the domestic market in late 2019.

regulatory community update

Half-year loss after tax was $82.3m, mainly the $79.9m impairment; underlying loss was $2.8m. Revenue rose 31% to $29.8m. Senex sanctioned $13m of long-lead items for Western Surat sales gas compression; FY18 capex guidance is under review.

half year report

After a portfolio review, Senex expects an $80m non-cash impairment on non-core Cooper Basin exploration assets and will rationalise them (sale, farm-down or relinquishment). Capital goes to Surat gas and western flank oil; lender financing is on track to close mid-2018.

asset acquisition disposition

Senex agreed to sell raw gas from the Phase 2 Western Surat wells to GLNG, extending the earlier Phase 1 arrangement, on terms described as competitive. Sales began 21 December at over 4 TJ/day, resolving the open GLNG agreement thread.

material agreement

All 30 Western Surat Phase 2 wells are online on time and at $1.2m per well, producing over 4 TJ/day, ahead of expectations. Mimas-2 core results match Eos and Glenora; the next 40-50 wells are identified, and financing is expected to close in coming months.

production update

Senex received its Environmental Authority from the Queensland Government to develop up to 425 wells at the Western Surat Gas Project. It expects the remaining State and Commonwealth approvals, including a Petroleum Lease, by the end of FY18.

regulatory community update

Senex brought the first pod of Western Surat Phase 2 wells online; 24 of 30 are drilled and all 30 are expected producing by end 2017. Cost is on track for $1.2m per installed well, and a raw gas sales agreement with GLNG is still being negotiated.

production update

Frey-1 in PEL 93 (Senex operator) found no significant hydrocarbons and was plugged and abandoned at 1,394m. Cooper Energy funded 19% of the well. This is a dry hole for the PEL 93 JV, partly cushioned by the farm-in partners' funding.

drilling result

Senex won 58 sq km of Surat Basin gas acreage near Miles in the Queensland Government's domestic gas tender, for nil consideration. Estimated P50 recoverable gas is 201 PJ, with first gas targeted for 2019. This resolves the April tender bid and expands its gas business.

asset acquisition disposition

FY17 results: revenue fell 37% to $43.6m, loss $22.7m, cash $134.8m. FY18 capex guided at $80-100m, production 0.75-0.90 mmboe, focused on Western Surat gas and Cooper western flank oil. Material Surat gas production is expected in FY19; Vanessa gas is due early 2018.

annual report

At 30 June 2017, proved (1P) reserves rose 38% to 16.7 mmboe and proved plus probable (2P) reserves were broadly flat at 83.9 mmboe. Surat Basin gas gains offset Cooper declines. Contingent resources (2C) were 208.1 mmboe.

resource reserve update

Marauder-1 (ex-PEL 104, Senex 60% operator, Beach 40%) is a Birkhead oil discovery, flowing 655 bopd on a drill stem test with up to 8.6m net pay. It sits about 2km north of Growler and Spitfire, with production expected in the coming months. This follows the dry PEL 182 wells.

drilling result

Unstable coals collapsed in the Silver Star-1 DW-1 horizontal section while casing was run, damaging the casing. The well is suspended while replacement casing is procured. The joint venture still plans frac and testing in first half FY18; weekly reporting paused.

drilling result

Senex starts drilling 30 wells on the Glenora and Eos blocks of its Western Surat Gas Project, part of the $50m Phase 2 programme sanctioned in February. First wells are expected online in Q1 FY18, slightly later than the mid-2017 earlier indicated.

production update

Hoplite-1 and its sidetrack in PEL 182 (Senex 57%) were plugged and abandoned: the drill stem test flowed free oil but not at commercial rates. Senex calls it encouraging for the Birkhead play; a third PEL 182 well is planned in Q4 FY17. Silver Star-1 is drilling ahead.

drilling result

Senex begins drilling the Silver Star-1 gas exploration well in PEL 638 (Senex 53.75% operator), costing about $15m to roughly 3,600m, with Origin carrying Senex's share. Follows Efficient-1 and Ethereal-1; the latter awaits a nitrogen lift test.

drilling spud

The Share Purchase Plan drew over $36m in applications, with shares issued at $0.315. Total raised across the placement and SPP is about A$91m, assuming FIRB approval of EIG's second tranche. EIG will hold about 12%.

capital raising announcement

Sparta-1 in PEL 182 (Senex 57%) was plugged and abandoned for insufficient commercial pay, a dry hole. Hoplite-1 found 17 metres of gross Birkhead pay with good oil shows, and a drill stem test is under way. A third well is planned for Q4 FY17.

drilling result

Senex sanctions its first major Western Surat Gas investment: about $50m for a 30-well campaign, first wells online mid-2017 and around 10 TJ/day (~0.6 mmboe a year) expected by mid-2018. Gas sales to GLNG still depend on agreeing terms. Resolves the pending investment decision.

material agreement

Senex raises A$55m by placing 15% of its shares at 31.5 cents, about 12.6% to EIG Global Energy Partners, which will become a substantial shareholder. A Share Purchase Plan capped at A$40m follows. EIG says up to US$300m of Western Surat funding may be available, subject to due diligence and agreement. Part of the EIG placement needs FIRB approval.

capital raising announcement

Senex starts its FY17 Cooper Basin drilling campaign, with Worrior-11 spudding mid-December, then Spitfire-8, then Sparta-1 and Hoplite-1 oil exploration wells in PEL 182 in early 2017. Silver Star-1 gas well (about $15m, Origin carrying Senex's share) is due to spud in February after rig delays.

drilling scheduled

The Glenora pilot, the first Western Surat Gas Project development, was completed on budget and ahead of schedule, and appraisal testing starts immediately. A raw gas sales agreement with Santos GLNG is still being negotiated. A legacy well on the Eos block free-flowed over 2 million cubic feet a day for about three hours.

joint venture update

Senex guided FY17 capex of $60-70m and production of 0.8-1.0 mmboe, with at least six Cooper Basin wells and the first Surat appraisal wells online by end 2016. The Vanessa gas field was expected online in Q1 FY17, and a high-impact Cooper gas exploration well with Origin was planned for Q2 FY17.

other

At 30 June 2016, 2P reserves rose 15% to 83.4 mmboe (net of Maisey sale) and 1P to 12.1 mmboe, with first Surat Basin 1P booking after the GLNG gas deal. Cooper contingent resources were cut 39% to 208 mmboe, mainly unconventional gas, after weak Hornet-1 and Kingston Rule-1 tests.

resource reserve update

Pre-announcement of half year items: about $38m after-tax gain on the Maisey sale, offset by about $70m non-cash impairment on longer-dated Cooper exploration assets. The impairment reflects lower oil price assumptions and cut near-term spending; producing assets are not expected to be impaired.

other

The GLNG deal for the Western Surat Gas Project completed: Senex received $42m cash plus technical data for the Maisey block, and a binding 20-year gas sales agreement up to 50 TJ/day. This resolves the September 2015 pending deal; appraisal work starts in the second half of FY16.

asset acquisition disposition

Senex agrees to sell the 77 km2 Maisey block (ATP 889) to GLNG for $42m cash. It also signs a binding heads of agreement for a 20-year gas sales agreement of up to 50 TJ/day, oil-linked pricing. This gives the Western Surat Gas Project a buyer and a funding path. Completion is expected by end of 2015, subject to approvals.

material agreement

Net 2P reserves rose 137% to 94.6 mmboe at 30 June 2015 (from 39.9), mostly from the QGC gas swap, with gas 83.3 mmboe. Oil 2P fell to 11.3 mmbbl (from 13.3). 1P fell to 4.3 mmboe. Some Murta reserves were reclassified as contingent because of low oil prices.

resource reserve update

Preliminary FY16 outlook: capex guidance $35-45m (FY15 actual $82m) and production guidance 1.0-1.2 mmboe (FY15 1.39). Priority is cash preservation and the Western Surat Gas Project. Cooper Basin spend is cut to $15-20m. Origin free-carries a further $25-35m. This delivers the FY16 plan promised earlier.

other

Graham Yerbury, formerly CFO of Cardno and earlier at Macarthur Coal and Arrow Energy, is appointed CFO, expected to join late October 2015. He replaces Andrew Price, who resigned to join PanAust and leaves in early August 2015.

director officer appointment

Senex set up an $80m unsecured three-year multi-currency debt facility with Westpac for general corporate purposes. It said it had no requirement to draw it down and that the facility adds to its liquidity.

debt financing

Orca Energy agreed to sell Senex its 20% interests in the Burruna oil field (PPL 251), the Fury oil field (PRL 117) and PEL 110 for about $2m cash, effective 1 January 2015. Settlement is expected by 31 May 2015, subject to regulatory approvals.

asset acquisition disposition

Trevor Bourne, a director since 1 December 2014, becomes Chairman from 10 March 2015, succeeding Denis Patten, who stays on as a non-executive director. This resolves the open chair succession flagged at the November AGM.

director officer appointment

Martlet North-1 (PRL 148, Senex 60% operator, Beach 40%) found a Namur oil discovery with 3.2 m net pay, 1.1 km from the producing Martlet-1. It is cased and suspended as a future producer, with tie-in timing subject to field development planning.

drilling result

Half-year to December 2014: record production of 0.74 mmboe, revenue $69.9m, but a statutory loss of $65.9m after an $86.5m impairment. Underlying profit was $1.6m (down 95%). Cash $74.9m, no debt, no dividend; the impairment was flagged on 18 February.

half year report

Senex expects a non-cash impairment of $86.4m before tax ($60.5m after tax) on Cooper Basin oil assets in its half-year accounts, citing lower oil prices (long-term US$73/bbl). It says operating outlook is unaffected.

financial restatement

Senex cuts FY15 capex guidance 20%, from $100-120m to $85-90m, and the drilling program from 26 wells to about 16. It adds $6m of annual cost savings and keeps 1.4+ mmboe production guidance. This concludes the December spend review.

other

Senex confirms Sheerkhan-1 was plugged and abandoned (uneconomic oil volume, poor reservoir) and Jenners-1 abandoned at 2,525 m with poor shows. The six-well northern Cooper campaign found no commercial reserves. Rig moves to Martlet North-1, near the Martlet-1 discovery.

drilling result

Jenners-1 (PEL 100, Senex 55% operator) was plugged and abandoned at 2,525 m in pre-Permian basement, a dry hole. It ends the exploration campaign in the northern Cooper that began in late 2014.

drilling result

Partner Beach estimates Martlet field (PEL 104/111, Senex 60% operator) gross 2P oil reserves at 589 kbbl (1P 214, 3P 1,634), the first Namur reserves in the permit. Facilities cost about $4.1m and are complete; Martlet-1 began producing in December.

resource reserve update

The QGC swap completed: Senex traded its 20% of PL 171 and 30% of ATP 574P, no cash, for 100% and operatorship of ATP 767, 795 and 889. Net 2P gas reserves rise by 56 mmboe to 83 mmboe. Up to $40m committed over three years, with minimal FY15 spend.

asset acquisition disposition

Vanessa-1ST (PEL 182, Senex 57%) flowed gas at an average 5.0 mmscfd with condensate of 15 bbl per mmscf. It is 4 km from pipeline infrastructure and the JV plans to bring it online, resolving the Vanessa testing thread.

well test result

Martlet oil field (PEL 104, Senex 60%) began production in early December, initially held to about 50% of capacity due to high water, with oil around 850 bopd. Hornet is flowing about 1.3 mmscfd. Water facilities should lift Martlet output in the second half of FY15.

production update

Senex has begun reviewing capital, operating and administrative spending for the rest of FY15 given a potentially sustained lower oil price, and may defer parts of the capital program. It says it has no plans or need to raise equity and still expects to beat 1.4 mmboe production guidance.

other

Senex began commercial gas sales from the Hornet field (PRL 105, 100%) to the SACB JV, its first gas production, under the March 2014 agreement of up to 10 mmscfd. Kingston Rule-1 is expected to add production in early 2015, after workover.

production update

Trevor Bourne, a founding director of Origin Energy and current Caltex director, joins the board as independent non-executive from 1 December 2014. Chairman Denis Patten says this is his last AGM as Chairman; a successor will be named in coming months and he stays on the board.

director officer appointment

Hornet-1 (PEL 115, Senex 100%) flowed gas at more than 2 million cubic feet per day and is in pre-commissioning for first gas sales to the Santos-operated SACB JV under the March 2014 agreement. It would be Senex's first gas sales.

production update

Cooper Energy reports Akela-1 (PEL 110, Senex 60% operator) reached 2,676 m with trace to poor oil shows and was cased and suspended for possible later evaluation of the Birkhead. Not a discovery; the rig moves to Jenners-1 in PEL 100 in December.

drilling result

Planet Gas reports two drill stem tests at Bagheera East-1 (PEL 514) found no moveable hydrocarbons; the well is being plugged and abandoned. Despite earlier oil shows, it is the second dry hole in a row in PEL 514 after Hathi-1.

drilling result

Planet Gas reports Hathi-1 (PEL 514, Senex 80% operator) reached 2,568 m with only trace hydrocarbons on wireline logs, and is being plugged and abandoned. Another dry exploration well; the rig now moves to Bagheera East-1.

drilling result

Martlet-1 (PEL 104, Senex 60%) found a Namur oil accumulation, up to 6 m net pay at 2,096 m, to be cased and on production next quarter. Squire-1 (PRL 59) was dry with oil shows in a poor reservoir. Rig moves to Hathi-1 in PEL 514.

drilling result

Senex swaps its minority stakes in Surat permits PL 171 and ATP 574P for 100% and operatorship of three western Surat permits, with no cash. Net 2P gas reserves rise to 488 PJ from 157 PJ; up to $40m to be spent over three years. Completion expected by 14 December, subject to approvals.

asset acquisition disposition

Warthog-1 (PEL 111, Senex 60%) was dry: good sands but no oil or gas shows, plugged and abandoned at 1,887 m. Squire-1 reached 2,500 m and was in drill stem testing; Martlet-1 (PEL 104) was drilling. A third exploration miss after Tornado-1 and Sabre-1.

drilling result

Senex sets FY15 guidance: more than 25 wells, about 1,000 sq km of 3D seismic, production above 1.4 mmboe, 2P oil replacement above 200%, capex $100-120m. Fully funded with $76.6m cash. Hornet and Vanessa gas testing to start; builds on the FY14 results.

other

Sabre-1 (PEL 111, Senex 60%) was dry: good oil shows but poorly developed reservoir, plugged and abandoned at 1,900 m. A second straight exploration miss after Tornado-1. Warthog-1 and Squire-1 (first Cordillo 3D well, PRL 59) are next; FY15 program due 26 Aug.

drilling result

Senex lifted net 2P oil reserves by 4.5 mmbbl to 13.3 mmbbl at 30 June 2014, a 327% replacement ratio, independently assessed by D&M. 1P rose to 5.5 mmbbl and 3P fell slightly to 20.5 mmbbl. Delivers the FY14 guidance of 4-6 mmbbl additions.

resource reserve update

Tornado-1 (PEL 111, Senex 60%), the first Lignum 3D exploration well, was plugged and abandoned with excellent Birkhead sands but no hydrocarbons, at 2,170 m. The 30-well FY14 program is complete; Sabre-1 is next in July.

drilling result

Craig Stallan, currently Santos' General Manager Upstream South Australia, is appointed Chief Operating Officer from August 2014, responsible for Senex's Cooper-Eromanga operations. The managing director links it to the company's growth ambitions.

director officer appointment

Senex and Origin completed the two Cooper Basin tight gas farm-ins announced 24 Feb 2014. Work programs total up to $252m over 1,935 sq km, with Senex free-carried on Area A (60%) and Origin funding. Planet's share in Area B Deeps is also funded.

farm in farm out completion

Four Spitfire wells (PEL 104, Senex 60%) are cased as Birkhead producers with up to 13.8 m net pay. Spitfire-4 produces about 700 bopd and Spitfire-6 flowed 1,600 bopd on test. Results support the new seismic technique and further westward drilling.

drilling result

Planet Gas, quoting operator Senex, reported that Sprigg-1 in PEL 514 had no net pay calculated, only a gas show in the Paning Member. The well was suspended pending evaluation of the test results.

well test result

Senex signs a two-year gas sales agreement with the Santos-operated Cooper Basin JV for raw gas from Hornet (PEL 115, Senex 100%), up to 10 mmscfd from the September quarter 2014. Supply is discretionary, so Senex can earn revenue during appraisal testing.

material agreement

Origin farmed into Senex's Cooper Basin tight gas acreage under two agreements, Area A (PEL 516/115) and Area B (PEL 514 Deeps), with up to $252m of work. Senex is free-carried for its share of the first $185m two-stage program, and completion is expected by 30 June 2014.

farm in farm out agreement

AWE reveals it rejected a non-binding, conditional Senex scrip takeover proposal of 1.9 Senex shares per AWE share (implied $1.44, merged group 53% Senex/47% AWE), and Senex has withdrawn. Senex had also been buying AWE shares in the market.

business combination

Senex confirms it made a non-binding, indicative merger proposal to AWE on 11 December, and withdrew it on 15 December after AWE said it would not engage. This closes the AWE approach; the proposal was subject to due diligence.

business combination

Acrasia-6 (PPL 203, Senex 100%) reached 2,369 m with about 31 m of net oil pay and 15 m possible, plus a new upper Tinchoo oil accumulation. Acrasia-8 is planned next and facility upgrades are planned. Arrabury pay is not yet known pending core analysis.

drilling result

Senex books its first Murta Formation contingent oil resource: 4.9 mmbbl 2C (1.6 1C, 10.4 3C) net, with up to 82.6 mmbbl oil in place, independently assessed by DeGolyer and MacNaughton. A pilot horizontal well is planned, with initial results expected this financial year.

resource reserve update

Worrior-8 (PPL 207, Senex 70%) flowed gas at 0.7 MMscf/d and stabilised oil at 670 bopd from the Patchawarra, a new oil accumulation at the field. Reinterpretation suggests it may extend across the field. The well is shut in for pressure build-up testing.

well test result

Burruna-3 (PEL 115, Senex 80%) reached 1,664 m, confirmed the Namur oil of Burruna-2 and found about 3 m of net pay in a new lower Birkhead accumulation, pending logging. This is a positive appraisal result for the field discovered with Burruna-2.

drilling result

Sprigg-1 in PEL 514 reached 2,472 m and intersected 6.3 m of interpreted net pay in the Murta Formation, plus shows in the Arrabury and Birkhead. Casing is being run; further cased-hole tests depend on rig availability.

drilling result

Pirraminta-2 in PEL 514 reached 1,771 m and found no significant hydrocarbons. It was cased and suspended as a future water well. This is a dry hole, and the second of the two farm-in wells due by end November 2013.

drilling result

Orca completes sale of its 20% of PEL 115 to Senex (except Fury and Burruna blocks per earlier terms). Senex's 115,000,000 Orca shares were cancelled, and Senex nominee Denis Patten resigned from Orca's board. This completes the Orca deal that was awaiting approvals.

asset acquisition disposition

Burruna-2 (PEL 115, Senex 80%) began an extended production test after flowing over 3,600 bopd, restricted to about 800 bopd for now. Namur estimated at about 400,000 barrels recoverable if appraisal succeeds. Burruna-3 appraisal well follows Pirraminta-2.

production update

Dunlop-1 in PEL 113 (Senex 100%) is a new oil discovery, flowing 1,200 barrels a day from about 3 m of McKinlay pay; up to 9 m of Murta pay is still to be tested. TD 1,469 m. It will produce this quarter.

drilling result

Tellus Resources agrees to farm out PEL 105 in the Cooper Basin to Senex. Senex gets 50% by paying $3.5m towards the Pirie-1 well, and rises to 70% (Tellus 30%) by funding another well by 30 June 2014, subject to ministerial approval. Tellus cites up to 3 million barrels recoverable.

farm in farm out agreement

Burruna-2 in PEL 115 (Senex 80%) is an oil discovery: 5.3 m net pay in the Namur, with oil flowing over 750 barrels a day without water in testing. It will be cased as a future producer, the first exploration success of the 30+ well campaign.

drilling result

Senex and South Australia agree a 15-year retention licence scheme covering about 10,000 sq km of operated oil permits. It replaces permit-by-permit spending obligations with a portfolio target of about $30m a year net to Senex, giving tenure security.

regulatory community update

Worrior-9, drilled alone by Senex, found a poorly developed reservoir and was plugged and abandoned, the campaign's first dry hole. Worrior-8 is cased and suspended as a future producer. Burruna-2 began drilling 6 August, and Acrasia-7 is next.

drilling progress report

Planet Gas confirms all approvals are met and the PEL 514 deal with Senex has completed. Senex now holds 80% and Planet Gas 20%, for $5m cash plus a $9m free carry. This resolves the pending PEL 514 transfer; Cordillo 3D and two wells are still due by November 2013.

farm in farm out completion

FY14 guidance: net oil production of 1.4–1.6 million barrels, up from 1.24 million, and 2P oil reserves growth of 4–6 million barrels. Capex is expected at $120–140m, mostly oil. Hornet appraisal is prioritised with an early partner sought, and CSG monetisation is pursued alongside an 11-well Surat program.

other

Worrior-8, the first well of the 30-well oil campaign, reached 1,778 m with up to 18 m of net oil pay interpreted from logs, to be confirmed by testing. Senex will next drill Worrior-9 alone, targeting up to 12 million barrels of oil in place.

drilling result

Independently assessed oil reserves rise to 5.1 mmbbl (1P), 10.8 mmbbl (2P) and 21.4 mmbbl (3P) at 30 June 2013, up from 2P 8.1 mmbbl. This includes first bookings at Mustang and Spitfire, a 319% 2P replacement ratio.

resource reserve update

Senex lifts its Cooper Basin gas contingent resources to 1.9 Tcf (2C) and 5.5 Tcf (3C), independently estimated. Hornet moves from prospective to contingent, and Sasanof and Paning get first bookings. Senex plans to seek a Hornet partner early.

resource reserve update

Senex starts a self-funded campaign of more than 30 oil wells over 12 months in the Cooper Basin, beginning with Worrior-8. It follows a review that identified over 50 oil prospects; the program needs board and joint venture approval.

drilling scheduled

Senex met its revised 1.2 million barrel net oil guidance for 2012/13, more than doubling output for the second year running. Cash is $140m with no debt, and a large drilling campaign starts within a week.

production update

Orca sells its 20% of PEL 115 to Senex for benefits worth about $7m, including cancelling Senex's 19.99% Orca stake and free carries. Orca keeps 20% of the Fury and Burruna blocks. Subject to approvals and an Orca shareholder vote.

asset acquisition disposition

Paning-2 flowed gas from Toolachee Coal at up to 90,000 scfd over four days, with 2.1 Tcf gas in place estimated. Senex also agreed to sell its 15% Cuisinier interest for $20m, and Hornet-2 appraisal and a restart of oil drilling are planned.

drilling progress report

Senex names a new Hornet gas field in PEL 115 and PEL 516: 141 Bcf of 1C contingent resource and 771 Bcf best-estimate prospective resource (up to 2.9 Tcf high). First appraisal well is planned early in the September quarter, with the field under 30 km from the Moomba-Sydney pipeline.

resource reserve update

Planet Gas transfers 10% of PEL 514 North and 30% of South to Senex, cutting its stake to 20% and lifting Senex to 80%. Senex pays $5m cash and carries Planet Gas for $9m of costs, plus royalty and reserve-based payments.

farm in farm out agreement

Senex reached its 1 million barrel net oil target for 2012/13 more than two months early and lifted full-year guidance to 1.2 million barrels. ASX also reclassified it as a Mining Producing Entity, so quarterly reporting moves to listing rule 5.1.

production update

March drilling report: Kingston Rule-1 reached up to 1.4 mmscfd with 10-20 barrels of condensate per million cubic feet and is suspended. Vintage Crop-2 found 59 m gross oil and Cuisinier-7 about 6.2 m net pay; Skipton-1 flowback resumes.

drilling progress report

Hornet-1 (PEL 115, Senex 80%) flowed gas at over 2 million cubic feet per day after a multi-zone frac of Patchawarra tight sands, 2,484-2,678 m. This is the second frac'd well in the program to flow gas; testing continues through April.

flow test result

Kingston Rule-1 (PEL 115, Senex 80%) flowed gas at a constrained 1.2 million cubic feet per day after fracture stimulation of five zones. Skipton-1, the first well fracked in the campaign, had begun initial flowback.

flow test result

Senex reported a record half-year net profit of $23.4m on revenue of $77.3m (up 208%), with oil output of 660,136 bbl. Cash was $150m with no debt. Management says it will exceed its 1 million bbl full-year oil target.

half year report

Senex raised its net Surat Basin coal seam gas 2P reserves 13.4% to 156.6 PJ and 3P to 357.7 PJ. With contingent resources, the total is 598.2 PJ, up 15.1%. Independently estimated by MHA; 11 wells are planned over 12 months.

resource reserve update

Half-year accounts to 31 December 2012 show revenue of $77.3m, net profit of $23.4m (versus $2.0m a year earlier) and cash of $149.6m. Oil output was 660,136 bbl. Ten oil wells were drilled, eight successful.

half year report

Paning-2 in PEL 90 (100%) was cased at 3,144 m after intersecting 117 m of net gas pay: 47 m in tight sands and 70 m in deep coals. Senex estimates 2.1 Tcf potential gas in place in the coals; frac testing follows.

drilling result

Senex began a five-well fracture stimulation program, starting with Skipton-1, then Kingston Rule-1, Talaq-1, Hornet-1 and Paning-2, over about two months. Senex expects it to support certification of material contingent gas resources; flow testing runs into the June quarter 2013.

drilling progress report

Senex has sold 100% of Port Bonython Fuels to Mitsubishi, rather than 90% with an option over the last 10% as announced in March 2012. Price is not stated here. The project came with the 2011 Stuart Petroleum purchase; Senex plans up to $130m on twelve unconventional gas wells.

asset acquisition disposition

Kingston Rule-1 in PEL 115 found 53 m of net gas pay plus 150 m of shale and about 20 m of coal, with liquids-rich indications. Senex raised its PEL 115 stake from 55% to 80%. Frac testing is planned for early 2013.

drilling result

Spitfire-2 found 6.5 m of net oil pay in the mid-Birkhead, confirming a new oil field at Spitfire in PEL 104 (Senex 60%). It reverses Spitfire-1, abandoned as uncommercial in February 2012. Suspended as a future producer.

drilling result

Snatcher-9 found 11.2 m of net oil pay and extends the Snatcher field to the north west. It reached 1,908 m and will be suspended as a future producer. Another appraisal success in a field Senex runs at 60%.

drilling result

Strategic Energy Resources agreed to sell its remaining 5% of PEL 182 to Senex's subsidiary for $5m cash, with a $500,000 deposit. Subject to joint venture pre-emption rights. Would lift Senex above its 49.9% in a permit with approvals and 3D pending.

asset acquisition disposition

Drillsearch now holds 51.98% of Acer Energy, with acceptances including Senex's. So Senex has apparently sold its 6.42% Acer stake into the bid rather than competing, and Drillsearch becomes its partner in PEL 182 and PEL 100.

business combination

Mustang-1 free flowed at 6,700 bopd during clean-up and made about 800 bopd on a choked 10-day test with minimal pressure loss. Senex is planning a longer test targeting 2,000 bopd this quarter, supporting the July discovery.

well test result

Senex called Skipton-1 in PEL 516 (100%) a material liquids-rich gas discovery: over 75 m of net gas pay in the Patchawarra, 164 m of gas-charged shales and over 380 m of core. Fracture stimulation is planned for mid-December; Kingston Rule-1 starts within a week.

drilling result

Snatcher-10 was cased and suspended after finding a 15 m gross oil column with 10 m net pay, extending the Snatcher field (Senex 60%, Beach 40%) to the north. The rig moves to Snatcher-8, continuing the run of Snatcher successes.

drilling result

Senex reported FY12 net profit after tax of $8.9m on revenue of $70.4m, with oil output up 248% to 601,647 bbl. It targets 1 million bbl in FY13, 17 Surat CSG wells and 12 unconventional gas wells, with cash over $165m and no debt.

annual report

Senex starts fortnightly drilling reports. Tomcat-1 found a developed Birkhead channel but no hydrocarbons and was plugged and abandoned, a dry hole following the Mustang-1 discovery. Snatcher-7 is drilling, Skipton-1 is setting casing, and Sasanof-1 is shut in for cleanout equipment after exceeding 200,000 cf/d.

drilling result

Kruger-1 in PEL 516 reached 1,675 m with oil shows over 7 m in the basal Birkhead/Hutton, but a drill stem test recovered no hydrocarbons and the well was to be plugged and abandoned. Ambassador funded the well to earn 60% of Mudlalee; Senex operates with 40%.

drilling result

CFO Julie Whitcombe moves to a new General Manager, Planning and Reporting role. Andrew Price, from Anglo American, joins as Chief Financial Officer in September 2012, as part of an expanded senior management team.

director officer appointment

Ambassador reports Kruger-1 spudded on 23 July and was drilling at 174 m toward a planned 1,675 m. Ambassador funds the well to earn 60% of the Mudlalee block; Senex operates and keeps 40%. This follows the dry Shocking-1.

drilling spud

Senex contracted Weatherford Rig 826 for the next two wells of its 12-well unconventional gas program: Skipton-1 (PEL 516, spud second week of August) and Kingston Rule-1 (PEL 115, October, subject to joint venture approval). A three-well fracture campaign including Talaq-1 follows.

drilling scheduled

Sasanof-1, Senex's first unconventional gas well in PEL 516, flared liquids-rich gas at a peak of 178,000 cubic feet a day during clean-up after fracturing in May. Testing continues. This is the first measured gas rate after earlier reports of gas to surface.

well test result

Mustang-1 (Senex 60% operator, Beach 40%) discovered a new western flank oil field. A 4.5 m gross column (4.0 m net) in the mid-Birkhead flowed at a rate equivalent to 2,484 barrels a day. It will be cased as a future producer. The release is dated 17 June but the events are July 2012.

drilling result

The retail part of the $155m raising closed with applications for about 35.9m shares (about $26.6m), 34.7% of the 103.5m offered. The shortfall of about 68.2m shares (about $50.5m) goes to sub-underwriters. Sentient took its full entitlement; settlement 18 July.

capital raising announcement

Shocking-1 (Senex 40%, Ambassador funding to earn 60%) recovered formation water with traces of oil from the McKinlay and will be plugged and abandoned, a dry hole. Senex's share of the cost was carried. The rig moves to Kruger-1 (380,000 bbl).

drilling result

The $50m placement and $28m institutional entitlement offer at $0.74 closed well oversubscribed. The fully underwritten retail offer of about $77m opens 27 June and closes 11 July. J.P. Morgan and RBS Morgans underwrite.

capital raising announcement

Senex launches a fully underwritten $155m raising at $0.74 a share: about $50m placement plus a 2-for-13 entitlement offer of about $105m. It funds unconventional gas exploration in the Cooper Basin. Sentient, at 16.6%, will keep its stake. About 210m new shares.

capital raising announcement

Oil production restarted after the rain, running over 4,500 bopd gross on 14 June. The FY12 target is cut to about 600,000 net bbl, and a 1 million net bbl target is set for FY13. Sasanof-1 gas flows continue; Talaq-1 is being cased.

production update

Rain closed Cooper Basin roads, halting Growler (31 May) and Snatcher (1 June) output, which was above 5,500 bopd gross. Senex says the net FY12 oil target will fall below 700,000 bbl; it describes the production as deferred, not lost.

production update

Santos's Cuisinier-4 on the Barta Block (Senex 15%) found a 23.4 m gross oil column, at least 9.4 m net pay, and was cased as a future producer. It is the first of four Barta wells; Cuisinier-5 is next, from the week of 11 June.

drilling result

Formation gas reached surface during early flowback at Sasanof-1, a positive preliminary result, though quantities are not given. Talaq-1 reached 2,879 m with over 320 m of core and condensate shows in the Epsilon; it will be cased pending fracturing with Skipton-1.

well test result

Ambassador will fund Shocking-1 in PEL 516 to earn 60%, replacing the Rowley location, which is flooded; it keeps a 12-month option on Rowley-1. Senex keeps 40% and operates. Century 3 mobilises in June, spud mid-June, up to 400,000 bbl upside; Kruger-1 follows.

farm in farm out agreement

Snatcher-4 found a 10.3 m gross Birkhead oil column (at least 6.5 m net pay) and was cased as a future producer. The rig now moves to Snatcher-5, 470 m west of Snatcher-3, to spud around 3 June.

drilling result

A 790 sq km 3D seismic survey is underway in the northern Cooper Basin, covering PEL 88, PEL 90M and northern PEL 514. Senex awarded Terrex a contract worth over $11m. It targets Birkhead oil traps like Growler and Snatcher.

contract award

Net Surat Basin CSG 2P reserves rose 75% to 138.1 PJ (from 79.0 PJ at June 2011), 3P to 314.0 PJ, plus 205.4 PJ 2C contingent resource. First reserves booked in ATP 593P. This is the CSG upgrade previously flagged; MHA certified it.

resource reserve update

Oil production restarted 3 May at Snatcher field, flooded since January 2010 (Snatcher-1/-2 were making over 500 bopd gross before). Pumps are being installed; Senex expects rapid growth in 2012/13 and will drill Snatcher-4 and -5 with Beach.

production update

QGC (BG Group) sold its 73.9m Senex shares (8.0%) in a $75m institutional bookbuild at $1.02, a 9.1% discount to the 30 April VWAP. This is a secondary sale, not new capital; QGC stays a partner in PL 171 and ATP 574P.

capital raising announcement

Tigercat-2 found only 1.6 m of net pay in thin sandstone; drill stem testing recovered no oil, so it will be plugged and abandoned as non-commercial. A second exploration miss after Thunderchief-1; the rig moves to Snatcher.

drilling result

Growler-10 found a 15.2 m gross oil column (at least 14.0 m net pay) and was cased as a future producer, the eleventh consecutive Growler success. Production is expected in April. The rig moves to Tigercat-2, then Snatcher-4.

drilling result

Sasanof-1 (TD 3,102 m) showed significant gas shows and wet gas indications, with positive desorption results; it is cased and suspended. Fracture stimulation starts early May. Talaq-1 spudded 10 April, Skipton-1 is due June, and a fourth well follows in PEL 115.

drilling result

Independently certified oil reserves upgrade: net 1P rises to 4.2 and 2P to 8.1 mmbbl (both up 27% since June 2011), with Growler 2P up 90%. Net 3P falls 11% to 14.0 mmbbl as barrels move into firmer categories. This delivers the long-awaited upgrade.

resource reserve update

Senex and Beach expand the western flank campaign to 14 wells, adding Growler-10, Snatcher-4 and Snatcher-5. Growler-10 spudded 27 March. Snatcher, offline since the January 2010 flood, is expected to resume production in April.

drilling scheduled

Thunderchief-1, the eighth well of the 11-well program, hit poor-porosity sandstone and minor oil shows in the Birkhead channel and was plugged and abandoned. It is the exploration dry hole after Growler successes; the rig moves to Growler-10 (PRL 15).

drilling result

Senex agreed to sell 90% of Port Bonython Fuels, the fuel terminal project inherited with Stuart in May 2011, to Mitsubishi Corporation, with the other 10% under a put and call option within 13 months. Price undisclosed until completion; conditions precedent pending.

asset acquisition disposition

Growler-8 found 20.5 m gross reservoir with at least 18.5 m net, again extending the Growler field west. It will be cased as a producer, online in March 2012; rig moves to Thunderchief-1.

drilling result

Spitfire-1 found oil in a new stratigraphic trap (shows at 1,722-1,731 m) but tests recovered only 2.5 barrels of oil, so it is classed non-commercial and plugged. Senex sees follow-up locations updip; rig moves to Growler-8.

drilling result

Orca Energy (the PEL 115 partner) will farm out 22% of PEL 115 to Senex, and Senex will subscribe $4m for 115 million Orca shares at 3.5c (19.99%). Orca is free-carried on its remaining 20% for an unconventional gas well later in 2012.

farm in farm out agreement

Growler-7 found a 20 m gross oil column with at least 18.8 m net pay, the thickest in the Growler field, extending it to the west. Online early February 2012; rig moves to the Spitfire-1 exploration well.

drilling result

Senex launched a three-well unconventional gas program in PEL 516 (100%); Sasanof-1 spudded 4 January 2012 to 3,200 m, with Skipton-1 and Talaq-1 to follow. Senex aims to book a material contingent resource at the end of FY12.

drilling spud

Jaguar-1, the first exploration well of the program, will be plugged and abandoned at 1,850 m. The channel was present but filled with mudstone and siltstone rather than sand. Gas shows were seen. The rig moves to Growler-11.

drilling result

Growler-9 found a 17.5 m gross oil column with at least 11.5 m net pay, much thicker than expected, extending the Growler field limits. Cased as a producer due online December 2011. Better than Growler-6's 6 m net pay; rig moves to Jaguar-1.

drilling result

Planet Gas says PEL 514 has been granted by PIRSA, ahead of the end-2011 expectation. This clears Senex's three-well farm-in, which earns 50% in the northern and 70% in the southern part, with Senex as operator.

regulatory community update

Growler-6 found a 17 m gross oil column in the Birkhead Formation, with at least 6 m net pay, and was suspended as a future producer. This is the first result from the 11-well program and supports the 700,000 bbl target.

drilling result

Growler production restarted on 29 September after Cooper Creek bridge and road repairs, in line with the late-September plan. Vintage Crop-1 oil production is due within days. Drilling programs in PRL 15 and PEL 104 can now start.

production update

The $0.35 entitlement issue was significantly oversubscribed: over 122m shares taken as entitlements and top-up applications for over 63m shares against under 30m available. No shortfall shares, so Sentient's shortfall commitment was not needed. Shares issue 26 September.

capital raising announcement

Sampdoria-1, Santos-operated in the Wompi Block, was plugged and abandoned at 1,823 m. A test at the top of the Hutton Sandstone recovered only 2.8 bbl of mud-cut water. A dry hole, though Senex's 22.75% interest was carried at no cost.

drilling result

Senex agreed key terms with Santos to ship Snatcher crude via an upgraded six-inch Charo–Tirrawarra pipeline to Moomba. The PEL 111 venture pays A$4.1m (about A$2.5m Senex share) as tariff prepayment. Completion expected by March 2012; formal documents pending.

material agreement

Senex launched a fully underwritten 1-for-5 non-renounceable entitlement issue at $0.35 to raise about $53.3m, a 15.7% discount to the last trade. Proceeds fund the flowlines, western flank oil development and unconventional gas. Sentient will take its entitlement and 44.25m shortfall shares.

capital raising announcement

Growler production and the 11-well drilling program in PRL 15 and PEL 104 are scheduled to restart in late September 2011 once road access is regained after the floods. Ensign rigs 48 and 5 are contracted for the year, with workovers planned at Worrior, Acrasia, Mirage and Ventura.

production update

Senex and Beach agreed to build flowlines from Growler to Lycium (Senex 60%) and Lycium to Moomba (Senex 40%), at a net cost to Senex of about A$20m. Completion is targeted for June 2012, subject to SACB JV approval of the Moomba tie-in. Formal documents are still being negotiated.

material agreement

Senex farms into PELA 514 (1,921 sq km, northern Cooper Basin) from Planet Gas, earning 50% of the Northern Area and 70% of the Southern Area by funding three wells. Senex becomes operator. The licence is expected to be granted by end 2011.

farm in farm out agreement

Senex farms out 60% of PEL 516's Mudlalee and Rowley Blocks and 50% of PEL 113's Zulu Block to Ambassador Exploration, which will fund three wells and 100 sq km of 3D seismic. Senex stays operator and keeps unconventional gas rights. Conditions precedent still pending.

farm in farm out agreement

Senex set its 2011/12 budget targeting at least 700,000 bbl net oil, with five Growler development wells, six PEL 104 exploration wells, and three dedicated shale gas wells in PEL 516. It says the program is fully funded from existing cash and operating cash flow.

drilling scheduled

Coring at Vintage Crop-1 finished, with over 200 m of gross Toolachee coal and shale penetrated. Continuous gas shows with liquids and heavy gases were seen, which Senex says are in line with MHA's up to 99 Tcf gas-in-place estimate for PEL 516 shales. Laboratory desorption results still to come.

drilling result

Vintage Crop-1 in PEL 516 (Senex 100%) found a new oil field, flowing 312 bopd on test from the McKinlay Member with 3 m net pay. Preliminary estimate is at least 305,000 bbl oil in place. Coring of coals and shales follows.

drilling result

Senex now owns 100% of Stuart Petroleum after compulsory acquisition of the remaining shares. This completes the all-scrip takeover begun on 21 February 2011. Management cites immediate cashflow, western flank oil upside and Stuart's unconventional gas acreage.

business combination

Senex reached 90.7% of Stuart and will compulsorily acquire the rest when the offer closes 12 April. Vintage Crop-1 (PEL 516, 100%, 2,075 m) is planned. Growler access was cut again by floods after about 13,830 bbl produced; pipeline design is under way and Pinelands-11 spudded.

business combination

Senex gave Stuart a $5m unsecured loan facility, repayable within 12 months, as Stuart sought liquidity after merger expenses. Ian Davies becomes Stuart's MD and Julie Whitcombe its CFO. Senex has acceptances for over 75% of Stuart.

debt financing

Acceptances reached 50.63% of Stuart shares, giving Senex majority control under its unconditional offer. Denis Patten and Ian Davies were appointed to the Stuart board, and the offer stayed open until 29 March 2011.

business combination

Cuisinier-3 reached 2,040 m and was cased as a potential producer after wireline logs indicated 5-6 m of net oil pay in the upper Murta. Cased-hole tests of this and two earlier wells are expected within two months. Senex holds 15%.

drilling result

Senex declared its Stuart offer unconditional after acceptances reached 42.36%, and will issue shares within three business days. It also pays a 1.0% broker handling fee on retail acceptances. This removes the 50.1% minimum condition; the offer still closes 29 March.

business combination

Growler oil deliveries have resumed for the first time in over a year. Senex expects about 800 bopd gross initially, worth net revenue above $1.4m a month at current prices. The 40% partner is now named as Beach.

production update

MHA audit of Snatcher and Growler books first Proved (1P) reserves of 1.6 mmbbl. Net 2P oil rises 194% to 4.7 mmbbl and 3P rises 193% to 13.2 mmbbl, as at 19 February 2011. This meets the earlier 4.5 mmbbl 2P target.

resource reserve update

Senex sold its 20% Impress stake into Beach's 8.5 cent on-market offer, realising about $15m and lifting cash to about $63m. It says the bid undervalues Impress, but it prefers to fund its drilling program and keep Beach as a partner. This resolves the Impress thread.

asset acquisition disposition

Senex agreed a friendly takeover of Stuart Petroleum, offering 2.5 Senex shares per Stuart share, valued at about $77.8m. Stuart's board recommends it, and its largest holder (19.9%) has pre-agreed acceptance. The merged group would have 6.9 mmbbl net 2P oil. The offer closes 29 March 2011.

business combination

Oil production has restarted at the Growler field after the new access road restored access. Ensign Rig 48 is being mobilised to start the drilling program. This resolves the year-long flood shutdown that began February 2010. Senex holds 60% and operates.

production update

Independent certification of the Surat CSG permits PL 171 and ATP 574P puts net 2P gas at 34.0 PJ and 3P at 160.1 PJ. With Don Juan, net 2P rises 76% to 79.0 PJ and 3P 180% to 249.1 PJ. This resolves the overdue certification thread.

resource reserve update

Victoria will build an alternative access road to Growler in January 2011 to start drilling in February, after the field was cut off since February 2010. It targets over 1,500 bopd and net 2P above 4.5 mmbbl by mid-2011, using three Growler development wells and three PEL 104 exploration wells.

drilling scheduled

Victoria signed to buy Traditional Oil's 50% of PEL 88 and 5% of PEL 100 for $500,000 in Victoria shares, giving it 100% of PEL 88. This is subject to South Australian approval and partner consent, and extends its Western Margin acreage.

asset acquisition disposition

Impress's board recommends Beach's new unconditional on-market cash offer of 8.5 cents a share, replacing the merger scheme. Impress says it was prompted by Victoria's 20% stake and plan to vote against. Beach holds 19.9%; Victoria's 20% now faces a takeover.

other

Victoria lifted its stake in Impress Energy from about 10% to 20.00% through on-market and off-market purchases. It does not intend to bid against the Beach scheme but currently plans to vote against it, which could block Beach's merger with its 40% partner at Growler.

asset acquisition disposition

Victoria raised $26m through a placement of 70.27m shares at 37 cents, lifting cash to about $59m; Sentient rises to about 13.8%. It also agreed a $71m 2011 CSG program with QGC ($17m net), will take over Don Juan as operator, and targets 1,500 bopd by mid-2011.

capital raising announcement

Victoria proposes to change its name to Senex Energy Limited and convert from a 'No Liability' company to a company limited by shares, with a revised constitution. Shareholders vote at the November 2010 AGM. Described as reflecting the new management's growth focus.

security holder rights change

FY2010 maiden profit of $2.6m (against an $8.6m loss) on record revenue of $13.2m and net oil production up 15% to 142,579 barrels, despite flooding. Oil production is expected to resume in early 2011.

annual report

Founding Managing Director John Kopcheff retired from the Victoria Petroleum board after 26 years, citing the smooth transition to the new management team and the Brisbane move. He will stay engaged in an advisory role.

director officer appointment

Partner Impress says Growler and Snatcher remain cut off by floodwater and access is unlikely before the first quarter of 2011, later than the November 2010 estimate. A two-rig program aims to reach 3,000 bopd, twice pre-flood levels, and a pipeline is being planned.

joint venture update

Ian Davies, ex-QGC CFO, becomes Managing Director from late July 2010, replacing John Kopcheff, who stays as an Executive Director. Two former QGC executives join as general managers, head office will move to Brisbane, and Victoria has bought a 10.15% stake in Impress.

director officer appointment

Victoria agrees to buy ADX's 49.9% interest in PEL 182, next to its Cooper Basin permits, for A$1.1m cash plus about $200,000 of well plugging liability. Subject to South Australian approval and partner pre-emption or consent.

asset acquisition disposition

Mirage and Ventura restarted at 85 bopd, but Growler and Snatcher roads are now not expected to reopen until November 2010. FY2011 net production revenue is cut to an estimated $12.1m, and the 10-well drilling program is pushed to November 2010.

production update

Cuisinier-1 (ATP 752P) is on production at about 340 bopd with a 1.5% water cut, trucked to Jackson. It is Victoria's first Queensland Cooper oil producer. Interest is 20.37%, falling to 15% after the farm-in work. This delivers the 2Q 2010 target.

production update

Shareholders overwhelmingly approved buying Permian Oil from BG, which holds a 20% interest in the Western Margin permits. Completion would lift Victoria to 60%, raising net 3P oil reserves to 4.4 million barrels. This resolves the pending shareholder approval.

farm in farm out completion

Victoria now expects Growler and Snatcher roads to reopen only in late September 2010, keeping FY2010 net revenue at $4.7m. A 268 sq km 3D survey defines 25 drill targets (up to 21 million barrels unrisked); up to 10 wells with two rigs planned from September.

production update