Senex attributes the positive momentum to several major milestones it achieved across the Surat and Cooper basins.
Australian energy producer Senex (ASX:SXY,OTC Pink:VPTOF) released its 2019 half-year results today. Highlights of the company overview include increased production as well as cash flow and earnings growth.
Shares of Senex were up as much as 8.96 percent on Tuesday (February 19), following the announcement.
The company attributes the positive momentum to several major milestones it achieved across the Surat and Cooper basins.
Production increased by 49 percent during the period, climbing from 374 kilobarrel of oil equivalent (kboe) in the first half of 2019, to 557 kboe in the second half.
Part of the production increase came as a result of a Q2 ramp-up at the company’s Roma North gas production site, which grew to 134 kboe from 18 kboe.
“Senex achieved continuing growth in production, earnings and cash flow in the first half of this financial year,” Ian Davies, CEO and managing director of Senex, said in the announcement.
“This is highlighted by a 74-percent increase in earnings before interest, taxes, depreciation (or depletion), amortization and exploration expense (EBITDAX) and an AU$20 million turnaround in operational cash flow as gas production ramps up ahead of expectations.”
In addition to output growth, the Australian energy producer increased sales in the first half of 2019 by 44 percent, to AU$43 million.
Senex, which has been in operation for 30 years, operates two of the country’s largest onshore energy resources, the Surat Basin in Queensland and Cooper Basin located in southern Australia.
The company is also steadily working to advance its resource plays and deliver energy security to the east coast of Australia through its Western Surat gas project located north of Roma and Project Atlas, near Wandoan and Miles.
“We’ve continued to reach milestones that keep us on schedule for first gas from our Surat Basin growth developments. Successful execution of Roma North and Project Atlas will boost annual gas production to 3 mmboe [million barrels of oil equivalent] (48 TJ/day) by the end of the 2021 financial year,” explained Davies.
Drilling in the Cooper Basin during the first half of 2019 also proved successful for the energy company.
“As we execute our strategy right across the business, 2019 will prove to be a game-changer for Senex.”
Shares of Senex were up 4.48 percent at the end of day Tuesday to AU$0.35.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.