Oil and Gas News

Senex fast tracks Roma North

Senex Energy has reached plateau production at its Roma and Atlas natural gas fields in Queensland, with execution plans for the Roma North expansion project finalised.

This will result in part of the 2022 financial year work program accelerating into the fourth quarter of the 2021 financial year.

Senex has also updated its natural gas production guidance from 16.3-18.6 petajoules (PJ) to 17-18 PJ.

Company managing director and chief executive Ian Davies said it had been an excellent start to the 2021 financial year with the company delivering strong production growth, a step change in earnings and cashflow and the disposal of its Cooper Basin business.

“Production in the Surat Basin now exceeds 50 terajoules a day (TJ/d), or more than 18 PJ/year and equivalent to around 10 per cent of Queensland’s natural gas demand, with natural gas production in the half of 8.0 PJ exceeding total (2020 financial year) production, demonstrating the increase in gas field production performance,” Davies said.

“We have new investments under way to accelerate production from our extensive natural gas reserves position in the Surat Basin. We announced the final investment decision for the expansion of Roma North natural gas production by 50 per cent to 24 TJ/day (9 PJ/year), with this low-cost, high-return and long-life investment being the first example of Senex’s high-quality investment opportunities to realise the 780 PJ of 2P reserves that we hold.”

The company has also commenced dividend distributions to its shareholders at an initial rate of 1 per cent per annum for the 2021 financial year and an additional 0.5 per cent share special dividend following completion of the Cooper Basin sale, representing an annualised dividend yield of 4.3 per cent.

“The sale of our Cooper Basin business to Beach Energy for $87.5 million will provide additional strength to our balance sheet and bolster the cash flow resilience of our natural gas portfolio,” Davies said.

“On the back of our natural gas project delivery performance and resilient production and cashflow outlook, the board has determined to accelerate commencement of dividend distributions to our shareholders.”