Senex Sells Oz Cooper Assets to Beach

Senex Energy has entered into a binding agreement with fellow Australian explorer Beach Energy to sell its South Australian Cooper basin assets for A$87.5mn (US$61.7mn) cash, it said on November 3.

The sale will result in Senex’s exit from the Cooper basin while supporting the company's plan to accelerate the development of its Surat basin gas assets, increasing gas supply to the east coast. The deal is expected to close in early 2021 but will be backdated to July 1 2020.

"The sale of our Cooper basin assets will strengthen Senex’s balance sheet to accelerate the development of our material Surat basin natural gas asset position," CEO Ian Davies said. "The sale of our Cooper basin assets follows a deliberate and considered strategic review of Senex’s asset portfolio. Beach’s existing operations and experience in the Cooper basin, including as joint venture partner in our western flank oil assets, means it is ideally placed to acquire these assets and ensure a smooth transition and ongoing stewardship, as well as providing a number of ongoing employment opportunities."

The acquisition covers 6.8mn barrels of oil equivalent in 2P reserves and around 1,640 boe/d of projected output in the financial year ending June 30 2021, Beach said separately. Beach will become the sole Western Flank operator, and will also take 100% of its infrastructure, including the Growler-Lycium and Lycium-Moomba flowline systems.

“From a Beach perspective this was a logical acquisition given our proven track record of extracting value from permits we operate, combined with the fact we are building on our extensive position in the Western Flank across the South Australian Cooper basin,” Beach managing director Matt Kay said. "The transaction is immediately earnings accretive for shareholders, with initial estimates pointing to approximately A$5mn in annual operating cost savings, expected to be realised in the first year post acquisition.”