Roma production up 500%

THE SURAT Basin and the Queensland government’s domestic only acreage releases are paying off well for Senex Energy, with the Brisbane-based company posting both soaring production and profits this morning in its full year report to June 30
Roma production up 500% Roma production up 500% Roma production up 500% Roma production up 500% Roma production up 500%

“Transformation into an important east coast gas producer”: Senex at the end of FY19

Helen Clark

Editor

It posted a five-fold increase in Surat gas production, while full year production for all its fields including the oil projects it shares with Beach Energy, was up 43% over financial 2018 to 1.2 million barrels of oil equivalent. 
 
It posted a 4% increase in oil production for the year. 
 
Its Roma North production was over eight terajoules per day by the end of June.
Sales revenue benefitted from a production rise and higher realised oil prices rising 34% to $94 million for the year. 
 
Underlying EBITDAX was up 49% to A$39 million with its margin expansion supported by stable oil operating costs, Senex said. 
 
Cash flow was $45 million, a rise $5 million year-on-year, statutory net profit after tax was $3 million compared with last year's $94 million loss. 
 
Senex says more gas contracts are coming with industrial customers for its Project Atlas project, developed from one of the first domestic-only acreage releases from the Queensland government in 2017. 
 
Next year it plans to spend $150 million developing the Surat. 
 
During the year Senex signed on with pipeliner Jemena for the sale of its Roma North gas compressor station for $50 million. The Project Atlas gas compressor station and pipeline is well underway, it said. 
 
It said it has hit every Surat Basin development milestone as part of its 110 well campaign and is planning its Roma North ramp up for this year. 
 
During a conference call this morning managing director Ian Davies said it was hard to give an inked-in date for full production as "picking a particular day is a bit of a mug's game" when it comes to CSG wells, but "our end of financial 2021 run rate target of 18 petajoules per annum is unchanged". 
 
Interestingly, the new domgas giant in the state doesn't see much more value coming from recent acreage releases, with Davies suggesting the better option would be for those sitting on acreage to develop it. 
 
"There are more pieces of acreage coming up… I would struggle to categorise anything like Atlas," he said. 

"(There's a lot of) east coast gas and regulatory noise around these days, the key to more gas is more gas, People who have acreage need to go and drill."  
 
Senex had 2P reserves if 111.4PJ, a 2% decline over last year.  
 
Senex rose 1.6% today and was trading at 32c.