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SENEX Energy (ASX:SXY) increased its sales and production in the December quarter.
The company produced 0.35 million barrels of oil (up 9.4 per cent pcp), selling 0.34 million barrels (up 9.7 per cent pcp) for $44.5 million (up 29.7 per cent pcp) – a record for all three categories.
SXY is expecting to achieve its production guidance of between 1.4 and 1.6 million barrels of oil in FY14.
Managing director and CEO Ian Davies (pictured) says it is an outstanding result and oil production from the Cooper-Eromanga Basin operations continues to increase.
“The production exit rate and drilling success achieved to date will deliver a significant lift in production in the second half of 2013/14 and ensure we meet our full year production guidance,” says Davies.
Exploration is continuing at a fast pace, with Ensign Rig 48 drilling on the 19th of more than 30 oil wells planned for this financial year.
“Of the 15 wells drilled in the six months to 31 December 2013, 13 are potential oil producers and significant upside potential remains from testing of the 450 leads and prospects identified in our Cooper Basin permits,” says Davies.
An approach to merge with AWE Limited (ASX:AWE) was made in December, but when information was leaked to the media SXY pulled out of the potential deal before due diligence had started.
“As we move forward, we will continue to evaluate growth prospects that have the potential to enhance shareholder value,” says Davies.
“Over the short to medium term, that means focusing on opportunities to grow our valuable oil and gas business in the Cooper-Eromanga Basin while aiming to reduce production costs and preserve our
strong balance sheet.”
SXY is trading down 1.86 per cent at $0.687 per unit in early trading this morning.
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