Oz Senex Gets Funds for Surat Projects

Australian oil and gas company Senex has entered into a fully underwritten A$150 million ($111.45mn) debt facility to fund the development of its Surat Basin gas projects, the company said July 31.

The finance, which is provided by Australia and New Zealand Banking Group (ANZ), will fund the development of the company’s east coast Australia projects, including the Western Surat Gas Project and Project Atlas, as well as its Cooper Basin assets, and can be expanded to support new development assets, Senex said.

Senex’s managing director and CEO Ian Davies said the move is a major milestone for the company’s plans on the east coast.

“Senex has booked Proved and Probable (2P) gas reserves in the Surat Basin of over 600 petajoules, equivalent to over 100mn barrels of oil,” he said.

“Together with a continuing active drilling program in the Cooper Basin, the investment in Senex’s Surat Basin gas assets will drive a step-change in production, cashflow and earnings in the near term, and importantly deliver new gas supply to the east coast of Australia,” he said.

The key terms of the debt facility include a A$125mn senior secured reserve based lending facility, a seven year tenor, a starting interest cost of about 6% per annum, stepping down on completion of the projects, and A$25mn working capital, Senex said.