PERTH (miningweekly.com) – Oil and gas producer Senex Energy has reported a 103% increase in sales revenue for the 2021 financial year, as production increased by 140%.

The ASX-listed company on Thursday reported that natural gas production for the full year reached 17.3 PJ, with revenues growing to A$109.6-million. Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) for the full year were up 178% on the previous financial year, to A$54.5-million.

“Having safely and seamlessly delivered our initial A$400-million Surat Basin natural gas development projects in 2020, we more than doubled production and close to tripled Ebitda in 2021,” said Senex MD and CEO Ian Davies.

“The 2021 financial year was pivotal in the transformation of Senex. We exited our legacy Cooper Basin oil business, supporting our strong balance sheet, and cemented our position as a leading new natural gas supplier committed to Australia’s low-carbon energy future.

“We achieved consistent and considerable progress throughout the year. Our production, reserves, earnings, balance sheet, growth outlook and dividend, including excellent safety performance with not a single recordable injury during a very turbulent year, all demonstrated the strength and resilience of our strategy,” said Davies.

“We have strengthened our balance sheet, finished 2021 with more than A$100-million in cash reserves, and we are generating significant free cashflow to pursue our end-2025 production target of 60 PJe/year.

“With the 50% expansion of Atlas to 18 PJ/year announced this week, Senex will deliver material production growth in the year ahead for a tightening east coast gas market. In doing so, we continue to support the economy and jobs, and supply affordable and reliable natural gas for industry as Australia transitions to a lower carbon future,” Davies said.

The A$40-million expansion of the Atlas project is the next phase of growth to drive Senex towards its stated annual production target of more than 60 PJ/year by the end of 2025. With development drilling to start in September, Senex is on track to deliver a material increase in gas sales in the next 12 months.

For 2022, Senex has set a production target of between 21 PJ and 23 PJ, with sales expected to reach between 19 PJ and 21 PJ, while capital expenditure for the year is estimated at between A$70-million and A$80-million.

Senex is expected to take a final investment decision on the expansion of the Roma North facilities from the current 9 PJ/y to 18 PJ/y in the coming months.

The company has also started planning a third expansion of the Roma North operation, targeting annual production from Roma North of 27 PJ/y, with additional appraisal to be undertaken concurrently.