Net production for the final quarter of 2015 was 260,000 barrels of oil equivalent, off just 7% with new wells largely offsetting natural field decline. Target 2015-16 production is 1-1.2MMboe.
Sales were down just 4%, with the company's revenue largely protected by hedging, with income of $18.1 million from an average price per barrel of $70. The company is looking at hedging further to protect its bottom line.
Spending was down 25% to just $7.4 million as the company worked to keep costs under control and stretch its cash as far as possible so it can afford to fund the Western Surat gas project, a key initiative to expand Senex beyond being simply an oil company.
The $42 million received for the sale of the Maisey block, which came with a binding 20-year gas sales agreement under which Senex will supply up to 50 terajoules per day of sales gas from its areas to GLNG and the subsurface data from 250 wells has helped significantly derisk the Western Surat CSG project, which is on track for first production before the end of 2017.
The company has also derisked the Murta tight oil project by striking up a $3 million pilot agreement with world-renowned drilling technology concern Halliburton.
Halliburton is funding two-thirds of initial risk capital to progress the project, with returns to be earned from production revenue.
The tight oil pilot program will evaluate the commerciality of the low permeability Murta Formation, with fracture stimulation and flow testing of existing Senex oil wells, Mirage-6 and Ventura-2.
On success, the project can be expanded on similar terms, and may include horizontal well appraisal programs.
The wells have been fracced and will be brought online for extended production testing in the coming weeks.
The company is looking forward to new production from the Vanessa-1/ST1 gas-condensate well and Martlet-2 oil well this quarter.
Beyond that, the company is still working on a wider regional review of its holdings, building on thousands of kilometres of 3D seismic shot in recent years that is expected to see new targets matured for drilling in the first half of the year.
