At its annual general meeting in November it promised a maiden dividend by financial 2022, and also annouced a special dividend after the sale of its Cooper Basin oil assets to Beach Energy for A$87.5 million, leaving Senex a pure play gas company in Queensland. 

 

This special dividend will be paid on April 7. 

 

Senex's twin reasons for consolidation were to provide flexibility for smaller adjustments to be made in the quantum of dividend payments, which it says have now begun.

 

Also that the effect consolidation on the share price may mean it appeals to a wider range of domestic and international investors.  

 

"The board took this decision on the back of our excellent project delivery performance and resilient production and cashflow outlook," Senex chairman Trevor Bourne said in a speech to shareholders this morning. 

 

"Our recent half-year results showed that Senex continues to deliver strong production growth and a material step change in earnings and cashflow. 

 

"The sale of our Cooper Basin business to Beach Energy, completed just over two weeks ago, has provided additional strength to our balance sheet and enabled the special dividend.

 

"We now have a pro-forma net cash position of $33 million, and when combined with growth options in our portfolio, this puts Senex in a very strong position." 

 

Senex will pay a special dividend of 0.5c per share, and a maiden dividend of 1cps. 

 

Senex's underlying value and market cap remain the same. 

 

Senex shares are now worth 37.5c each.