Surat basin gas company announces production boost
Australian oil and natural gas company Senex Energy Limited announced the successful delivery of their $400 million Surat Basin gas projects, which are set to exceed production expectations and provide the company with strong earnings growth.
Senex supplies 10 per cent of Queensland's domestic gas and expanded their operations in the Surat basin five years ago, with their successful Atlas project near Wandoan hitting maximum production at the end of February.
On Monday, February 22, Senex announced the start of dividend distributions to its shareholders at an initial rate of 1 cent per share per annum for FY21, and an additional 0.5 cent per share special dividend following completion of the Cooper Basin sale, representing an annualised dividend yield for FY21 of 4.3%.
Senex Energy managing Director Ian Davies said it's an exciting time of growth for the company on many fronts.
"We have now invested over half a billion dollars of capital, we've reached plato productions, we have lots of growth options ahead, we have job opportunities in the regions, it's fantastic," he said.
Mr Davies said the company has not only flawlessly implemented their Surat Basin projects but has also shown an increase in production, reserves, earnings, cash flow.
"We're also announcing our inaugural dividend today, which is a great day for our shareholders," he said.
"This means we can continue to support jobs in the region, we continue to support to economy's manufacturing capability and the broader economy on the east coast of Australia.
Mr Davies said the Atlas production achievement illustrated continuing flawless delivery in Senex's Surat Basin expansion.
"This latest milestone underscores Senex's success in becoming a material new entrant in a strong domestic market with high barriers to entry. Our Surat Basin operations now produce the equivalent of 10 per cent of Queensland's domestic demand and there is much more to come as we unlock our 780 PJ of 2P gas reserves," Mr Davies said.