The Senex Energy Ltd (ASX: SXY) share price has remained unchanged at $0.36 per share in morning trade, despite a mixed quarterly result underpinned by FY19 production growth of 42% to 1.2 million barrels of oil equivalent (mmboe).
What did Senex Energy announce this morning?
In its latest quarterly result, Senex reported a strong quarterly performance as the company continues to de-risk the delivery of its Surat Basin natural gas projects while strengthening the foundation for production growth beyond initial capacity targets.
While the company reported several operational highlights and milestones, Senex's sales revenue for the quarter fell to $23.5 million versus $26.8 million in Q4 2019, despite net production increasing to 308 kilo barrel of oil equivalent (kboe) compared to 269 kboe in the prior corresponding period.
This decrease in revenue was largely due to a sharp decreased in realised oil price from $116 per barrel to $99 per barrel in the June 2019 quarter.
However, Senex did report FY19 production growth of 43% to 1.2 mmboe and achieved a near fivefold year-on-year (YoY) increase in gas production and a 4% YoY increase in oil production from the prior year.
The company continued production ramp-up at its Roma North site with quarterly gas production up 8% and a maximum daily rate above 8 terajoules (TJ) recorded following the start of commissioning of the compressor station.
Senex also reported that drilling was underway in the Surat Basin amid a successful campaign start-up at the site.
The company reported that the first nine of approximately 110 wells have now been drilled with connections to commence in Q1 FY20 and Senex's Project Atlas drilling to commence in August 2019.
Senex also reported its first sales specification gas from the company's Roma North facility with mechanical completion of the gas compressor station achieved and allowing commissioning to start during the quarter.
During the quarter, Senex achieved the sale of its Roma North facility to Jemena with cash consideration of $50 million to be received upon completion and facility expansion arrangements agreed upon.
Senex also announced three gas sales agreements with leading domestic manufacturers for the potential supply of ~24 petajoules (PJ) of gas.
Senex also reported the achievement of several Project Atlas construction milestones while civil works have commenced for the well pads and Jemena-owned gas compressor station and pipeline.
