SENEX DOUBLES OIL PRODUCTION

SENEX Energy (ASX:SXY) delivered record oil production of 1.24 million barrels (mmbbls) from its Cooper Basin fields in the 12 months to June 30.

The company more than doubled its production and sales (1.21mmbbls) of oil last financial year, compared to FY12, it reported in quarterly results today.

Revenue was not far behind, up 95 per cent from 70.4 million in FY12 to 137.3 million.

The quarterly comparison to the previous period showed production declining five per cent to 0.29mmbbls, sales down five per cent to 0.28mmbbls, but revenue up 3 per cent to 33.1 million. The decreases are put down to expected natural field decline.

Compared to the previous corresponding period, production was up 25 per cent to 0.29mmbbls, sales up 26 per cent to 0.28mmbbls and revenue up 35 per cent to $33.1 million.

“Our oil business goes from strength to strength and the upgrade of 3P oil reserves to 21.4 mmbbls gives an indication of what we expect to achieve with the 30 + well oil drilling campaign that commenced with the successful Worrior-8 development well in June,” says managing director and CEO Ian Davies (pictured).

“This quarter we demonstrated the potential of the Cooper Basin to meet the anticipated gas supply shortfall expected in eastern Australia over coming years.

“Across the basin we have defined 5.5Tcf of 3C contingent gas resources, equivalent to 914 million barrels of oil, which is a fantastic result so early in our exploration program.

“We will now vigorously pursue commercial opportunities to develop these resources.”

Senex expects to produce between 1.4 million to 1.6 million barrels in FY14, a 13-28 per cent increase on last financial year.

New wells drilled in almost every producing field during FY14 .

The company has $127 million in cash and no debt and plans to fully fund the oil exploration program with cash generated from the oil business.

It will seek to introduce a partner to the gas business at an early stage to aid with funding, marketing and technical expertise.