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- Senex Energy (SXY) has wrapped up the $87.5 million sale of its Cooper Basin business to Beach Energy (BPT)
- The deal puts SXY in a proforma net cash position of $33 million and also allowed for the payment of a fully franked 0.5 cent dividend, in addition to a special 93 per cent franked dividend at the same price
- Senex Managing Director and CEO Ian Davies said the sale marks an important milestone for the company as it builds its future in the Surat Basin
- For Beach Energy, the sale is set to expand its portfolio in the Cooper Basin and make it the sole operator in the Western Flank
- Senex closed the session in the grey, trading at 37 cents per share, while Beach Energy closed 2.12 per cent up for $1.68 per share
Senex Energy (SXY) has wrapped up the $87.5 million sale of its Cooper Basin business to Beach Energy (BPT).
It marks the end of the company’s 20-year tenure at the Queensland sedimentary basin, and puts the company in a proforma net cash position of $33 million.
Senex Managing Director and CEO Ian Davies said the sale marks an important milestone for the company as it builds its future in the Surat Basin.
“We have successfully delivered our $400 million Surat Basin natural gas development projects, with new investments underway to accelerate production from our extensive 780 PJ 2P natural gas reserves,” he commented.
βThe sale proceeds and the cash flow resilience of our natural gas portfolio also support the commencement of dividends for our shareholders,” he concluded.
According to Senex, the newly expanded Queensland operation is hoped to reach a growth target of five-fold production to 60 petajoules a year by the end of the 2025 financial year.
For Beach Energy, the sale is set to expand its portfolio in the Cooper Basin and make it the sole operator in the Western Flank.
Investors saw some benefit from the sale by way of a fully franked 0.5 cent dividend, in addition to a special 93 per cent franked dividend at the same price, which was conditional upon completion of the sale of the Cooper Basin business.
Senex closed the session in the grey, trading at 37 cents per share, while Beach Energy closed 2.12 per cent up for $1.68 per share.
