Senex sales jump after selling Queensland oil at $118 a barrel
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Oil producer Senex has reported a 33 per cent jump in sales revenue last quarter after selling oil at $US95 ($118) a barrel.
The Queensland producer (ASX:SXY) has benefited from high Brent crude prices and improved pricing from a new agreement signed in last 2017.
Senex said the average $US95 price was due to hedging.
Brent crude is a pricing benchmark for European oil, as opposed to West Texas Intermediate in the US and Dubai crude in the Middle East.
Brent is currently trading at $US69.31 on the ICE, or Intercontinental Exchange, in New York, close to its $US70 yearly high.
Senex sold 190,000 barrels of oil equivalent (boe), up 19 per cent on the prior quarter, while production was 200,000 boe.
“Operationally, the period was dominated by significant progress on the Western Surat Gas Project,” said managing director and CEO Ian Davies.
“We delivered the Phase 2 investment program in line with our commitments on cost control and schedule.
“In the Cooper Basin we have a compelling program of exploration, appraisal and development opportunities to progress on the western flank, starting with the first horizontal well on the Growler field and follow-up drilling on the Marauder field.”
Senex has identified some 15 exploration drilling targets in the Cooper Basin and will start drilling before the end of June.
It has $82 million in cash on hand after spending $17.8 million in the quarter.
The company’s share price barely moved on the news, up 0.68 per cent to 37.2c.
The company has been contacted for comment.