To: | Company Announcement Office | From: | Senex Energy Limited |
Company: | ASX Limited | Pages: | 28 |
Date: | 21 February 2020 | ||
Subject: | Senex Energy Limited (ASX:SXY) FY20 Half Year Report | ||
I provide the following for the Senex Energy Limited FY20 Half Year Report:
Page 2 | Appendix 4D |
Page 3 | Half Year Report |
With regards
David Pegg
Company Secretary
Page 1 of 28
Half year report for the period ended 31 December 2019
Appendix 4D
Based on accounts that have been reviewed
Results for announcement to the market
All comparisons are to the half year ended 31 December 2018
$ million | ||||
Revenue from contracts with customers | Increased | 25% | to | 53.3 |
Profit/(loss) after tax from ordinary activities | Improved | $6m | to | 1.5 |
Underlying profit after tax from ordinary activities | Increased | 91% | to | 2.7 |
Underlying profit after tax is a non-IFRS measure and a reconciliation to profit/(loss) after tax from ordinary activities is included below. Commentary on the Group's operating performance and results from operations are set out in the ASX announcement and Half Year Report. Underlying profit has not been subject to audit or review by Senex's external auditors. Commentary on the Group's operating performance and results from operations are set out in the Half Year Report.
Dividends
No dividends are proposed, and no dividends were declared or paid during the current or prior year.
Net tangible asset backing
31 Dec 2019 | 31 Dec 2018 | |
Net tangible assets per ordinary security | $0.24* | $0.24 |
* Net tangible assets per ordinary security excluding Right of Use Assets recognised from the adoption of AASB 16 Leases on 1 July 2019 is $0.12.
Additional Appendix 4D disclosure requirements can be found in the Half Year Report.
This report is based on the consolidated financial year 2020 half year financial statements which have been reviewed by Ernst & Young.
Reconciliation of profit/(loss) after tax from ordinary activities to underlying profit after tax
2019 | 2018 | |
Profit/(loss) after tax from ordinary activities | 1.5 | (4.5) |
Gain on sale of Senex Pipeline & Processing Pty Ltd | (0.1) | - |
Net impact of the Beach Energy transaction | 1.3 | 5.9 |
Underlying profit after tax from ordinary activities | 2.7 | 1.4 |
This FY20 Half Year Report is to be read in conjunction with the 2019 Annual Report.
Page 2 of 28
ABN 50 008 942 827
FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
Page 3 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
TABLE OF CONTENTS
Corporate information .............................................................................................................................................. | 5 |
Directors' report ....................................................................................................................................................... | 6 |
Consolidated statement of comprehensive income ............................................................................................... | 10 |
Consolidated statement of financial position ......................................................................................................... | 11 |
Consolidated statement of cash flows................................................................................................................... | 12 |
Consolidated statement of changes in equity ....................................................................................................... | 13 |
Notes to the financial statements.......................................................................................................................... | 14 |
Directors' declaration ............................................................................................................................................ | 25 |
Auditor's independence declaration...................................................................................................................... | 26 |
Auditor's independent review report .................................................................................................................... | 27 |
Page 4 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
CORPORATE INFORMATION
This half year report covers Senex Energy Limited (Senex or the Company) and its controlled entities (collectively known as the Group).
The Group's presentation currency is Australian dollars ($). The functional currency of the Group is Australian dollars.
The nature of the operations and principal activities of the Group are described in the Directors' Report on page 6.
DIRECTORS: | Trevor Bourne (Chairman, Independent Non-Executive Director) | |
Ian Davies (Managing Director and Chief Executive Officer) | ||
Timothy Crommelin (Non-Executive Director) | ||
Ralph Craven (Independent Non-Executive Director) | ||
Debra Goodin (Independent Non-Executive Director) | ||
John Warburton (Independent Non-Executive Director) | ||
Vahid Farzad (Non-Executive Director) (resigned 27 September 2019) | ||
SECRETARY: | David Pegg | |
REGISTERED OFFICE AND | Level 30, 180 Ann Street | |
PRINCIPAL PLACE OF BUSINESS: | Brisbane, Queensland 4000 | |
TELEPHONE: | +61 7 3335 9000 | |
FACSIMILE: | +61 7 3335 9999 | |
EMAIL: | info@senexenergy.com.au | |
WEBSITE: | www.senexenergy.com.au | |
SHARE REGISTER: | Computershare Investor Services Pty Limited | |
117 Victoria Street | ||
West End, Queensland 4101 | ||
Telephone:1300 850 505 (toll free) | ||
Email: | web.queries@computershare.com.au | |
Website: | www.computershare.com | |
SECURITIES EXCHANGE: | Australian Securities Exchange (ASX) | |
Code: SXY | ||
BANKERS: | ANZ Banking Group Ltd | |
Level 20, 111 Eagle Street | ||
Brisbane, Queensland 4000 | ||
AUDITORS: | Ernst & Young | |
Level 51, 111 Eagle Street | ||
Brisbane, Queensland 4000 |
Page 5 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
DIRECTORS' REPORT
Your Directors present their report on the Company and its consolidated entities for the half year ended 31 December 2019.
DIRECTORS
The Directors who served at any time during or since the end of the half year until the date of this report are:
- Trevor Bourne (Chairman, Independent Non-Executive Director)
- Ian Davies (Managing Director and Chief Executive Officer)
- Timothy Crommelin (Non-Executive Director)
- Ralph Craven (Independent Non-Executive Director)
- Debra Goodin (Independent Non-Executive Director)
- John Warburton (Independent Non-Executive Director)
- Vahid Farzad (Non-Executive Director) (resigned 27 September 2019)
PRINCIPAL ACTIVITY
The principal activities during the half year of entities within the consolidated group were oil and gas exploration and production.
REVIEW AND RESULTS OF OPERATIONS
Highlights - First Half FY20
- Sales revenue up 25% to $53.3 million (H1 FY19: $42.8 million).
- NPAT up $6 million to $1.5 million (H1 FY19: loss of $4.5 million).
- Underlying NPAT up 91% to $2.7 million (H1 FY19: $1.4 million).
- Operating cash flow up 31% to $18.2 million (H1 FY19: $13.9 million).
- Surat Basin gas production up 1.3 PJ to 2.1 PJ (H1 FY19: 0.8 PJ). First production and sales achieved at Atlas.
- Total production up 40% to 779 kboe (H1 FY19: 557 kboe).
- Major milestones achieved for the Surat Basin project, including 33 wells brought online and the Roma North gas processing facility sold to Jemena for $50 million cash consideration.
- Gemba-1gas discovery brought online in December 2019.
Financial performance
-
The Group's oil and gas sales revenue for the half year ended 31 December 2019 was $53.3 million, an increase of 25% from the half year ended 31 December 2018.
o Oil revenue increased $2.6 million to $37.7 million as a result of higher average realised prices of $106 per barrel (31 December 2018: $97 per barrel).
o Gas revenue increased $7.9 million to $15.6 million for the half year, driven by an increase in sales volume to 363 kboe (2.1 PJ) from the continued ramp-up of Roma North and first gas production from the Atlas and Gemba fields. Average realised prices per boe were $43 ($7.40 per GJ). - Oil unit operating costs decreased 5% to $27.33 per barrel produced (half year ended 31 December 2018: $28.79) primarily from a continued focus on cost control within the Cooper Basin.
- Gas unit operating costs were $22.39 per barrel oil equivalent produced ($3.85 per GJ produced) during the early stage of ramp-up.
- The Group's net profit before tax for the half year ended 31 December 2019 was $1.5 million (half year ended 31 December 2018: loss of $4.5 million). The increase is primarily due to lower exploration expense from less unsuccessful drilling activity in the Cooper Basin and an increase in revenue and margins from higher gas production.
- At 31 December 2019, the Group held cash reserves of $122.7 million and had drawn debt of $125.0 million. Net debt at 31 December 2019 was $2.3 million.
Page 6 of 29
SENEX ENERGY LIMITED
ABN 50 008 942 827
DIRECTORS' REPORT
Operational performance
Senex delivered production growth from successful exploration and development activity for both oil and gas in the Cooper Basin and continued ramp-up of gas volumes from the Roma North and Atlas natural gas developments. Results included:
- Broadly flat oil production of 366 kboe (half year ended 31 December 2018: 374 kboe). Natural oil field decline was offset by increased production from the Growler and Spitfire fields following workover activity.
- Gas production of 413 kboe (2.3 PJ) (half year ended 31 December 2018: 183 kboe (1.1 PJ)), driven by the ramp-up of existing and new wells at Roma North and first gas production from the Atlas and Gemba fields.
Exploration and development
Surat Basin
Significant progress and important milestones were achieved during the half year, as outlined below.
Atlas milestones
- First gas sales achieved ahead of schedule. Delivery of first gas is a major milestone achieved in what is believed to be record time for a greenfield project. This milestone also marked delivery of new gas molecules from Australia's first acreage dedicated to the domestic market.
- Gas processing facility construction completed with processing and transportation operations commenced. In June 2018, Senex partnered with major energy infrastructure provider Jemena to build, own and operate the 40 TJ/day gas processing facility and the 60 km buried pipeline to the Wallumbilla Hub. During the half year Jemena completed construction of the facility and pipeline and commenced commissioning.
- Continuation of drilling campaign. 23 wells of the current campaign were brought online in the half year. Drilling results were excellent, with net coal intersections of up to 48 metres.
- Strong initial gas ramp-up and production outperformance. The first 23 wells of the current campaign are online and production continues to increase during the early stage of ramp-up.
Roma North milestones
- Continuation of drilling campaign. 10 wells of the current campaign were brought online in the half year.
- Production outperformance. Roma North production rates exceeded 13.5 TJ/day in the half year. Production rates post the period end have continued to increase, exceeding 15 TJ/day as production tracks ahead of expectations and towards the plant's initial capacity of 16 TJ/day (6 PJ/year).
Cooper Basin
Gemba gas discovery
The Gemba field (PEL 516: Senex 100% and operator) is located on the south-west margin of the Allunga Trough, about 5 km from existing infrastructure and 37 km south-west of the Moomba processing facility. Gemba commenced production in December 2019 with sales gas being sold to the Pelican Point Power Station in South Australia and associated liquids to the SACB JV.
Westeros 3D seismic survey
Processing of the ~600sq km Westeros 3D seismic survey was completed during the half year. A number of material exploration targets were identified with the first wells from the survey expected to be drilled in FY21.
FY20 drilling campaign
Senex and Beach successfully completed the Cooper Basin free-carry drilling program during the half year, with three of four wells drilled achieving objectives. Results are currently under review with a focus on follow-up development opportunities in the Growler and Spitfire fields.
Page 7 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
DIRECTORS' REPORT
People, environment and community
- Total recordable injury frequency decreased to 5.4 incidents per million hours worked (half year ended 31 December 2018: 9.7). The Group is placing a significant focus on contractor management and behavioural safety.
- Establishment of a 168-hectare environmental offset program with local landowners, providing improved habitat for rare and endangered species.
- Water supply to drought affected graziers through establishment of a Roma North irrigation scheme.
- Ongoing commitment to employing local businesses, staff and contractors and providing active support to initiatives with the communities in which Senex operates.
Commercial and Corporate
Expanded long term gas sales agreement with Orora Limited
Senex expanded its gas sales agreement with leading domestic manufacturer Orora Limited, agreeing to supply 13.2 PJ of natural gas from Atlas.
Additional Atlas domestic gas sales agreements
Senex signed gas sales agreements with new customers, including CleanCo, the new Queensland Government owned corporation focused on delivering affordable clean energy, and Origin, for varying volumes, tenors and supply terms. In aggregate, more than 4 PJ of natural gas will be supplied through to 31 December 2020.
Senex has now contracted more than 32 PJ of natural gas from Atlas (including potential contract volume expansions and term extensions), including a significant portion of expected production in 2020.
Reconciliation of profit/(loss) after tax from ordinary activities to underlying profit after tax
Half year-ended | Half year-ended | |
31 December 2019 | 31 December 2018 | |
Statutory net profit/(loss) after tax from ordinary activities | 1.5 | (4.5) |
Gain on sale of Senex Pipeline & Processing Pty Ltd | (0.1) | - |
Net impact of the Beach Energy transaction | 1.3 | 5.9 |
Tax (benefit)/expense | - | - |
Underlying profit after tax from ordinary activities | 2.7 | 1.4 |
Underlying net profit after tax is a non-IFRS measure. Items removed from underlying net profit after tax are:
Net impact of the Beach Energy transaction
In April 2018 Senex entered into an agreement with Beach Energy to terminate the Senex-Beach Energy unconventional gas project with consideration of up to $43 million transferred as a free-carry commitment to the mutually owned, Senex-operated, Cooper Basin western flank oil assets.
The net expense of $1.3 million relates to unsuccessful free carried wells. This has been removed from underlying net profit in order to consistently present the gains and losses from the Beach Energy transaction period on period.
Sale of Senex Pipeline & Processing Pty Ltd
During the half year ended 31 December 2019 Senex completed the sale of its Roma North gas processing facility and pipeline to major energy infrastructure operator, Jemena, for $50 million cash consideration.
Page 8 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
DIRECTORS' REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Company in the half year ended 31 December 2019.
EVENTS AFTER THE REPORTING DATE
Except for the items disclosed under 'Review and results of operations' above, the Directors are not aware of any matter or circumstance not otherwise dealt with in the reports or the accounts that has significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years.
AUDITOR INDEPENDENCE
The independence declaration received from the auditor of Senex Energy Limited is set out on page 26 and forms part of this Directors' Report for the half year ended 31 December 2019.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the directors' report and financial statements. Amounts in the financial statements have been rounded off in accordance with that legislative instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of Directors.
Trevor Bourne
Chairman
Brisbane, Queensland
20 February 2020
Page 9 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
For the half year | For the half year | |||
ended | ended | |||
31 December 2019 | 31 December 2018 | |||
Continuing operations | Note | $'000 | $'000 | |
Revenue | 5 (a) | 53,941 | 43,336 | |
Other income | 5 (b) | 1,682 | 3,277 | |
Expenses excluding net finance costs | 6 (a) | (49,853) | (40,252) | |
Oil and gas exploration expense | (1,856) | (10,120) | ||
Finance expense | 6 (b) | (2,397) | (771) | |
Profit/(loss) before tax | 1,517 | (4,530) | ||
Income tax benefit/(expense) | - | - | ||
Profit/(loss) after tax | 1,517 | (4,530) | ||
Net profit/(loss) attributable to owners of the parent entity | 1,517 | (4,530) | ||
Other comprehensive income | ||||
Items that may be subsequently reclassified to profit or loss (net of tax) | ||||
Change in fair value of cash flow hedges (net of tax) | (1,837) | 15,612 | ||
Total comprehensive (loss)/income for the period attributable | (1,837) | 15,612 | ||
to the owners of the parent entity | (320) | 11,082 | ||
Earnings/(loss) per share attributable to the ordinary | ||||
equity holders of the parent entity: | ||||
Basic earnings/(loss) (cents per share) | 0.10 | (0.31) | ||
Diluted earnings/(loss) (cents per share) | 0.10 | (0.31) |
The Consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Page 10 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
As at | As at | ||
31 December 2019 | 30 June 2019 | ||
ASSETS | Note | $'000 | $'000 |
Current assets | |||
Cash and cash equivalents | 7 | 122,668 | 62,669 |
Prepayments | 2,768 | 1,457 | |
Trade and other receivables | 8 | 30,964 | 27,385 |
Inventory | 10,045 | 10,393 | |
Other financial assets | 1,194 | 3,429 | |
Assets held for sale | 167,639 | 105,333 | |
9 | - | 50,941 | |
Total current assets | 167,639 | 156,274 | |
Non-current assets | |||
Trade and other receivables | 8 | 49 | 49 |
Property, plant and equipment | 2 | 231,289 | 57,683 |
Oil and gas properties | 280,241 | 208,530 | |
Exploration assets | 77,124 | 75,018 | |
Intangible assets | 4,822 | 5,163 | |
Other financial assets | 834 | 949 | |
Total non-current assets | 594,359 | 347,392 | |
TOTAL ASSETS | 761,998 | 503,666 | |
LIABILITIES | |||
Current liabilities | |||
Trade and other payables | 35,355 | 31,877 | |
Provisions | 5,568 | 6,131 | |
Lease liabilities | 2 | 2,860 | - |
Other financial liabilities | 296 | 348 | |
Liabilities directly associated with the assets held for sale | 9 | 44,079 | 38,356 |
- | 4,941 | ||
Total current liabilities | 44,079 | 43,297 | |
Non-current liabilities | |||
Provisions | 75,124 | 63,352 | |
Interest bearing liabilities | 7 | 115,270 | 40,006 |
Lease liabilities | 2 | 169,827 | - |
Other financial liabilities | 947 | 1,215 | |
Total non-current liabilities | 361,168 | 104,573 | |
TOTAL LIABILITIES | 405,247 | 147,870 | |
NET ASSETS | 356,751 | 355,796 | |
EQUITY | |||
Contributed equity | 540,468 | 540,468 | |
Reserves | 22,261 | 22,823 | |
Accumulated losses | (205,978) | (207,495) | |
TOTAL EQUITY | 356,751 | 355,796 |
The Consolidated statement of financial position should be read in conjunction with the accompanying notes.
Page 11 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2019
Note
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Payments for exploration expenditure
Payments for rehabilitation of wells
Interest received
Interest paid
Reimbursement of third party costs
Receipts from/(payments for) commodity hedges
Other receipts
Net cash flows from operating activities | |
Cash flows from investing activities | |
Payment for oil & gas assets, plant & equipment and intangibles | |
Proceeds from free carry funding | |
Proceeds from disposal of assets | |
Net cash flows used in investing activities | |
Cash flows from financing activities | |
Proceeds from shares issued | |
Proceeds from debt funding | |
Payments for debt facility cost | |
Payments for lease arrangements | |
Payments to Halliburton under tight oil agreement | |
Net cash flows from financing activities | |
Net increase in cash and cash equivalents | |
Net foreign exchange differences | |
Cash and cash equivalents at the beginning of the period | |
Cash and cash equivalents at the end of the period | 7 |
For the half year | For the half year |
ended | ended |
31 December 2019 | 31 December 2018 |
$'000 | $'000 |
52,822 | 56,718 |
(35,148) | (36,680) |
(5) | (9,121) |
(166) | (26) |
382 | 699 |
(2,561) | (307) |
- | 2,576 |
1,510 | (810) |
1,355 | 825 |
18,189 | 13,874 |
(84,625) | (44,778) |
3,314 | 10,145 |
50,130 | 14 |
(31,181) | (34,619) |
- | 255 |
75,000 | 35,000 |
(301) | (7,336) |
(1,507) | - |
(111) | (117) |
73,081 | 27,802 |
60,089 | 7,057 |
(90) | 388 |
62,669 | 66,541 |
122,668 | 73,986 |
The Consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Page 12 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
The following table presents the Consolidated statement of changes in equity for the half year ended 31 December 2018 and 31 December 2019.
Share-based | ||||||
Contributed | Accumulated | Payments | Hedging | |||
Equity | Loss | Reserve | Reserve | Total | ||
Balance at 1 July 2018 | $'000 | $'000 | $'000 | $'000 | $'000 | |
540,213 | (210,790) | 17,992 | (1,142) | 346,273 | ||
Loss for the period | - | (4,530) | - | - | (4,530) | |
Other comprehensive income | - | - | - | 15,612 | 15,612 | |
Total comprehensive income | - | (4,530) | - | 15,612 | 11,082 | |
Transactions with owners, recorded directly in equity: | ||||||
Shares issued | 255 | - | - | - | 255 | |
Share based payments expense | - | - | 1,025 | - | 1,025 | |
Balance at 31 December 2018 | 540,468 | (215,320) | 19,017 | 14,470 | 358,635 | |
Balance at 1 July 2019 | ||||||
540,468 | (207,495) | 19,415 | 3,408 | 355,796 | ||
Profit for the period | - | 1,517 | - | - | 1,517 | |
Other comprehensive loss | - | - | - | (1,837) | (1,837) | |
Total comprehensive income | - | 1,517 | - | (1,837) | (320) | |
Transactions with owners, recorded directly in equity: | ||||||
Share based payments expense | - | - | 1,275 | - | 1,275 | |
Balance at 31 December 2019 | 540,468 | (205,978) | 20,690 | 1,571 | 356,751 |
The Consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Page 13 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
1. CORPORATE INFORMATION
The financial statements of Senex Energy Limited ("the Company") and its consolidated entities (collectively known as "the Group") for the half year ended 31 December 2019 were authorised for issue on 20 February 2020 in accordance with a resolution of the Directors.
Senex Energy Limited is a company incorporated in Australia and limited by shares, which are publicly traded on the Australian Securities Exchange (ASX code "SXY").
The principal activities during the half year of entities within the Group were oil and gas exploration and production.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The half year financial statements are condensed half year financial statements and do not include all notes of the type normally included within the annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial statements.
The half year financial statements should be read in conjunction with the Annual Report of Senex Energy Limited as at 30 June 2019. The half year financial statements present reclassified comparative information where required for consistency with the current period's presentation.
It is also recommended that the half year financial statements be considered together with any public announcements made by the Group during the half year ended 31 December 2019 in accordance with the continuous disclosure obligations arising under the Corporation Act 2001 and Australian Securities Exchange Listing Rules.
- Basis of preparation
The half year consolidated financial statements:
- are general-purpose condensed financial statements;
- have been prepared in accordance with the requirements of AASB 134 Interim Financial Reporting;
- have been prepared on a historical cost basis;
- are presented in Australian dollars ($); and
- treat the half year as a discrete reporting period.
- Significant accounting policies
Except as disclosed below, accounting policies adopted in the preparation of the half year financial statements are consistent with those used in the preparation of the Group's Annual Report for the year ended 30 June 2019.
- New and amended accounting standards and interpretations adopted
The group has adopted AASB 16 Leases ("AASB 16") as at 1 July 2019 using the modified retrospective approach.
AASB 16 provides a new model for lessee accounting under which all leases will be accounted for by:
- Recognising right of use assets and lease liabilities for all leases, with the exception of short-term (12 months or fewer) and low value leases (less than $5,000), in the Consolidated statement of financial position. The lease liability is initially measured at the present value of future lease payments for the lease term. Where a lease contains an extension option, the lease payments for the extension period will be included in the liability if the Group is reasonably certain that it will exercise the option. The right of use asset at initial recognition reflects the lease liability, initial direct costs and any lease payments made before the commencement date of the lease less any lease incentives and, where applicable, provision for dismantling and restoration.
Page 14 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
- Recognising depreciation of right of use assets and interest on lease liabilities in the Consolidated statement of comprehensive income over the lease term. Upstream gas facility leases are depreciated based on their planned usage profile. All other leases are depreciated on a straight-line basis.
- Separating the total amount of cash paid into a principal portion (presented within financing activities) and interest portion (presented within operating activities) in the Consolidated statement of cash flows. During the first half of 2019, the Group recorded a total cash outflow of $2.6 million on qualifying leases.
Key impacts as a result of adopting AABS 16 on financial metrics for the half year end 31 December 2019 is shown below:
Impact | $'000 | |
Statement of financial position as at 31 December 2019 | ||
Right of Use Assets (included in Property, plant and | ||
Equipment) | Increase | 171,105 |
Lease Liabilities | Increase | 172,687 |
Income statement for the half year ended 31 December 2019 | ||
Depreciation - right of use assets | Increase | 1,946 |
Net finance costs | Increase | 1,785 |
Operating costs | Decrease | 2,485 |
Net impact on profit before tax | Decrease | 1,246 |
Cash flow for the half year ended 31 December 2019 | ||
Operating cash flow | Increase | 1,507 |
Financing cash flow (lease payments) | Decrease | 1,507 |
The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments in note 24 of Senex Energy Limited's 30 June 2019 Annual Report as follows:
Operating lease commitments as at 1 July 2019 (undiscounted lease payments) | 15,624 |
Weighted average incremental borrowing rate as at 1 July 2019 | 5.40% |
Discounted operating lease commitments at 1 July 2019 | 13,363 |
Less: commitments relating to short term leases | (13) |
Lease liabilities as at 1 July 2019 | 13,350 |
The increase in the lease liabilities from 1 July 2019 to 31 December 2019 is due to the recognition of new leases for the Roma North and Atlas Gas Processing Facilities which span between 20 and 25 years and other office leases. The Group has other lease arrangement for office premises, motor vehicles and an evacuation helicopter for terms ranging between one and seven years. Some lease arrangements contain variable pricing elements for annual cost increases from a CPI measure.
- Significant accounting estimates and judgements
Recoverability of oil and gas properties and exploration assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. External factors, such as changes in expected future processes, technology and economic conditions, are also monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset's recoverable amount is calculated.
Page 15 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
Previously impaired assets are reviewed for possible reversal of impairment at each reporting date. Impairment reversal cannot exceed the carrying amount that would have been determined (net of depreciation and amortisation) had no impairment loss been recognised for the asset or cash generating units (CGUs). There were no reversals of impairment in the current or prior year. At 31 December 2019, the group performed a review of indicators of impairment for oil and gas properties and exploration assets. The Group determined that no indicators of impairment were present.
Reserves estimates
Reserves are estimates of the amount of product that can be economically and legally extracted from the Group's properties. Estimates of recoverable quantities of proven and probable reserves include assumptions regarding commodity prices, foreign exchange rates, discount rates, production and transportation costs for future cash flows. It also requires interpretation of complex geological and geophysical models in order to make an assessment of the size, shape, depth and quality of reservoirs and their anticipated recoveries.
Changes in the estimate of reserves can impact:
- Asset carrying values due to changes in estimated future production levels;
- Provision for rehabilitation due to the potential to impact the timing and cost of rehabilitation;
- Recognition of deferred tax assets due to changes in the likely recovery of tax benefits; or
- Charge for depreciation and amortisation particularly where the charge is determined on a units of production basis.
Rehabilitation obligations
The Group estimates the future rehabilitation costs of oil and gas wells and production facilities at the time of installation of the assets. In most instances, rehabilitation of assets occurs many years into the future. This requires assumptions to be made on future environmental legislation, the extent of reclamation activities required, the engineering methodology for estimating future cost and future rehabilitation technologies in determining the cost. The rehabilitation obligation is discounted to present value using a ten-year government bond discount rate as this is reflective of the risk-free rate.
These estimates require significant management judgement and are subject to risk and uncertainty that may be beyond the control of the Group; hence, there is a possibility that changes in circumstances will materially alter projections, which may impact the recoverable amount of assets and the value of rehabilitation obligations at each reporting date.
3. FINANCIAL INSTRUMENTS
All financial assets are recognised initially at fair value plus transaction costs. Financial liabilities are recognised initially at fair value. Subsequent measurement of financial assets and liabilities depends on their classification.
Financial assets and liabilities carried at amortised cost are measured by taking into account any discount or premium on acquisition, and fees or costs associated with the asset or liability. Due to the short-term nature of these assets and liabilities, their carrying value is assumed to approximate their fair value.
For financial assets and liabilities carried at fair value the Group uses the following to categorise the inputs and methodology used to determine fair value at the reporting date:
Level 1 The fair value is calculated using quoted market prices in active markets.
Level 2 The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 The fair value is estimated using inputs for the asset or liability that are not based on observable market data.
Page 16 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
3. FINANCIAL INSTRUMENTS (continued)
The table below outlines the fair value of financial assets and liabilities:
As at 31 December 2019 | As at 30 June 2019 | |||||||
Fair values | Amortised | Fair value | Fair value | Amortised | Fair value | Fair value | ||
through | through | |||||||
cost | through OCI | cost | through OCI | |||||
profit or loss | profit or loss | |||||||
Financial Assets | ||||||||
Cash and cash equivalents | 122,668 | - | - | 62,669 | - | - | ||
Trade and other receivables | 5,107 | - | - | 1,928 | - | - | ||
Deferred consideration owing by Beach Energy | 1,481 | - | - | 4,794 | - | - | ||
Trade and other receivables - subject to provisional pricing 1 | - | 24,425 | - | - | 20,712 | - | ||
Other financial assets - current: | ||||||||
Cash flow hedges - crude oil pricing contracts 2 | - | - | 1,194 | - | - | 3,429 | ||
Other financial assets - non-current: | ||||||||
Cash flow hedges - crude oil pricing contracts 2 | - | - | 834 | - | - | 949 | ||
129,256 | 24,425 | 2,028 | 69,391 | 20,712 | 4,378 | |||
Financial Liabilities | ||||||||
Trade and other payables | 35,355 | - | - | 31,877 | - | - | ||
Lease liabilities | 172,687 | - | - | - | - | - | ||
Interest bearing liabilities | 125,000 | - | - | 50,000 | - | - | ||
Other financial liabilities - current: | ||||||||
Haliburton tight oil 4 | 190 | - | - | 190 | - | - | ||
Interest rate swaps 3 | - | - | 106 | - | - | 158 | ||
Other financial liabilities - non-current: | ||||||||
Haliburton tight oil 4 | 628 | - | - | 740 | - | - | ||
Interest rate swaps 3 | - | - | 319 | - | - | 475 | ||
333,860 | - | 425 | 82,807 | - | 633 |
Page 17 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
3. FINANCIAL INSTRUMENTS (continued)
- LEVEL 2
The Group recognises trade receivables in relation to its provisionally priced sales contracts at fair value. All derivatives and provisionally priced trade receivables are valued using forward pricing models that use present value calculations. The models incorporate various inputs including the credit quality of counterparties and forward rate curves of the underlying commodity. The changes in counterparty credit risk had no material effect on financial instruments recognised at fair value and therefore the other observable parameters outlined above categorise these assets as level 2 instruments.
- LEVEL 2
Crude oil price swaps have been designated as cash flow hedge instruments. The fair value of crude oil price swaps has been determined with reference to the Brent ICE forward price (USD) and forward exchange rate (AUD:USD) compared with the exercise price of the instrument along with the volatility of the underlying commodity price and the expiry of the instrument.
- LEVEL 2
Interest rate swaps have been designated as cash flow hedge instruments. The fair value of interest rate swaps has been determined with reference to the floating bank bill swap bid (BBSY) forward rate compared with the fixed price leg that the Group will pay.
- LEVEL 3
The carrying value of the Halliburton tight oil agreement approximates fair value at 31 December 2019. Fair value has been determined by reference to the initial amount funded by Halliburton and discounted cash flows across the term of the agreement, with reference to expected production from the wells subject to the agreement, Brent ICE forward price (USD), forward exchange rate (AUD:USD), forecast operating costs and royalties and other commercial terms under the agreement.
Page 18 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
4. OPERATING SEGMENTS
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive leadership team in assessing performance and in determining the allocation of resources.
The operating and reportable segments are based on the geographical location of the resources which correspond to the Group's strategy and are the sources of the Group's major risks and have the most effect on the rates of return.
Geographical segments
Cooper/Eromanga Basins
The Cooper/Eromanga Basins are sedimentary geological basins located mainly in the north east part of South Australia and extending into south west Queensland.
Surat Basin
The Surat Basin is a geological basin in Queensland and extending into New South Wales.
Major customers
Oil revenue is predominantly derived from the sale of crude oil to two major customers: the South Australian Cooper Basin Joint Venture (SACB JV) and IOR Petroleum. The SACB JV is a consortium of buyers made up of Santos Limited and Beach Energy Limited and their subsidiaries.
The Group sells gas produced from Roma North to GLNG. Gas from the Vanessa and Gemba fields in the Cooper Basin is sold to Pelican Point Power Limited. In December 2019, Senex commenced sales from the Atlas gas field which are contracted to a range of domestic customers. All customers are located within Australia.
Accounting policies
The accounting policies used by the Group in reporting segments internally are the same as those used to prepare the financial statements.
Certain revenues, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment.
Page 19 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
4. OPERATING SEGMENTS (continued)
The following tables present the revenue and profit information for reportable segments for the half years ended 31 December 2019 and 31 December 2018:
Revenue Oil sales
Gas and gas liquids
Fair value gains/(losses) on provisionally priced trade receivables
Total segment revenue from contracts with customers
Flowline income
Total segment revenue and revenue per the statement of comprehensive income
Results
Segment profit/(loss)
Reconciliation of segment net profit/(loss) before tax to net profit/(loss) from continuing operations before tax
Corporate items:
Interest income
Other income
Interest expense
Expenses excluding net finance costs
Net loss before tax per the Consolidated statement of comprehensive income
SURAT BASIN | COOPER/EROMANGA | TOTAL | ||||||
BASINS | ||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |||
- | - | 36,978 | 35,416 | 36,978 | 35,416 |
13,219 | 5,657 | 2,387 | 2,066 | 15,606 | 7,723 |
- | - | 695 | (387) | 695 | (387) |
13,219 | 5,657 | 40,060 | 37,095 | 53,279 | 42,752 |
- | - | 662 | 584 | 662 | 584 |
13,219 | 5,657 | 40,722 | 37,679 | 53,941 | 43,336 |
(2,814) | (2,706) | 13,249 | 7,348 | 10,435 | 4,642 |
364 | 507 | ||||
261 | 14 | ||||
(493) | (94) | ||||
(9,050) | (9,599) | ||||
1,517 | (4,530) |
Page 20 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
4. OPERATING SEGMENTS (continued)
Segment assets and segment liabilities at 31 December 2019 and 30 June 2019 are as follows:
Surat Basin | Cooper/Eromanga Basins | Total |
Segment assets
Segment operating assets
Assets held for sale
Corporate assets - cash
Corporate assets - other
Total assets per the statement of financial position
Segment liabilities Segment operating liabilities
Liabilities directly associated with the assets held for sale Corporate liabilities
Total liabilities per the statement of financial position
31 Dec 19 | 30 Jun 19 | 31 Dec 19 | 30 Jun 19 | 31 Dec 19 | 30 Jun 19 |
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
396,408 | 158,150 | 209,179 | 213,407 | 605,587 | 371,557 |
- | 50,941 | ||||
122,668 | 62,669 | ||||
33,743 | 18,499 | ||||
761,998 | 503,666 | ||||
257,747 | 69,535 | 54,784 | 55,480 | 312,531 | 125,015 |
- | 4,941 | ||||
92,716 | 17,914 | ||||
405,247 | 147,870 |
Additions and acquisitions of non-current assets (excluding financial assets, deferred tax assets and right of use assets):
Property, plant and equipment and intangibles Exploration assets
Oil and gas properties
Total segment additions
Corporate additions
Total additions
333 | 3,872 | 1,191 | 7,072 | 1,524 | 10,944 |
984 | 13,899 | 10,074 | 20,652 | 11,058 | 34,551 |
72,500 | 82,076 | 8,786 | 8,670 | 81,286 | 90,746 |
73,817 | 99,847 | 20,051 | 36,394 | 93,868 | 136,241 |
2,960 | 7,510 | ||||
96,828 | 143,751 |
Page 21 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
5. | REVENUE | |||
For the half year | For the half year | |||
ended | ended | |||
31 December 2019 | 31 December 2018 | |||
(a) Revenue from contracts with customers | $'000 | $'000 | ||
Oil sales | 36,978 | 35,416 | ||
Gas and gas liquids | 15,606 | 7,723 | ||
Fair value gains/(losses) on provisionally priced trade receivables | 695 | (387) | ||
53,279 | 42,752 | |||
Other revenue | ||||
Flowline income | 662 | 584 | ||
53,941 | 43,336 | |||
(b) | Other income | |||
Net gain on sale of exploration assets | 288 | 14 | ||
Net gain on termination of unconventional gas joint venture | - | 1,636 | ||
Interest income | 364 | 506 | ||
Other | 1,030 | 1,121 | ||
1,682 | 3,277 |
6. | EXPENSES | |||
(a) Expenses excluding net finance costs | ||||
Operating costs | 24,048 | 19,847 | ||
Depreciation of field-based assets | 3,501 | 4,774 | ||
Amortisation of oil & gas properties | 12,211 | 6,083 | ||
Employee expenses not included in operating costs | 2,839 | 3,819 | ||
Depreciation & amortisation of corporate assets | 3,070 | 570 | ||
Foreign exchange gain/(loss) | 91 | (389) | ||
Operating lease expense | 2 | 665 | ||
Flowline operating costs | 524 | 406 | ||
Other expenses | 3,567 | 4,477 | ||
49,853 | 40,252 | |||
(b) | Finance expenses | |||
Rehabilitation accretion | 444 | 677 | ||
Debt facility fees | 45 | 50 | ||
Interest expense | 2 | 123 | 44 | |
Interest expense - lease liabilities | 1,785 | - | ||
2,397 | 771 | |||
(c) | Employee costs 1 | |||
Wages, salaries and bonuses | 17,555 | 18,019 | ||
Share based payments | 1,275 | 1,025 | ||
Employee admin expenses | 1,759 | 2,196 | ||
20,589 | 21,240 |
1 includes all employee-related costs, including those costs that form part of cost of sales and costs capitalised as part of an exploration or development project, as well as costs that may be recovered from other joint venture parties.
Page 22 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
7. NET DEBT
As at | As at | ||
31 December 2019 | 30 June 2019 | ||
Non-currentInterest-bearing liabilities | $'000 | $'000 | |
Bank loan | 125,000 | 50,000 | |
Debt facility transaction costs | (9,730) | (9,994) | |
115,270 | 40,006 | ||
Cash and cash equivalents | |||
Cash at bank and in hand | 122,668 | 62,669 | |
122,668 | 62,669 | ||
Net (debt)/cash excluding transaction costs | (2,332) | 12,669 |
On 26 October 2018, the Group completed financial close of a $150 million Senior Secured Multi-Currency Facility Agreement (SFA). The SFA comprises of Facility A (reserve-based facility to primarily provide funding for key identified projects for Roma North and Atlas) and Facility B (working capital facility for general corporate purposes).
On 20 September 2019 the Group agreed to an additional facility (Facility C) under the SFA (letters of credit and bank guarantees). Facility A has a limit of $125 million, Facility B has a limit of $25 million and Facility C has a limit of $10 million.
Facility A matures on 25 October 2025 and carries an effective interest rate of AUD BBSY plus margin. Facility B and C mature on 25 October 2021 and attract varying cost dependent on the purpose of the utilisation.
At 31 December 2019 the Group has drawn down $125 million of Facility A. Facility B and C have been partially utilised for issuing letters of credit and bank guarantees.
Borrowing costs relating to assets currently under development have been capitalised in 'Oil and gas properties' during the period, at an interest rate of BBSY plus margin.
8. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
Trade receivables (not subject to provisional pricing) Trade receivables (subject to provisional pricing) Deferred consideration owing from Beach Energy Sundry receivables non-interest bearing and unsecured
Total Current trade and other receivables
Sundry receivables non-interest bearing and unsecured
Total Non-current trade and other receivables
1,091 | 902 |
24,425 | 20,712 |
1,481 | 4,794 |
3,967 | 977 |
30,964 | 27,385 |
49 | 49 |
49 | 49 |
Page 23 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2019
8. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES (continued)
The consideration receivable for the termination of the Senex-Beach Energy joint venture unconventional gas project agreement has been transferred as a free-carry commitment whereby the Group's share of cash calls will be paid by Beach Energy for a program of work in the Senex operated Cooper Basin western flank areas in which both parties are joint venture participants.
9. ASSETS HELD FOR SALE
On 12 September 2019 Senex Energy Limited completed the disposal of Senex Pipeline & Processing Pty Ltd ("SPP"). SPP's primary business was the construction and operation of the Roma North gas compression facility and associated pipeline. SPP did not contribute to the Group's result during the half year ended 31 December 2019.
The Group recognised a gain on disposal of SPP of $0.1 million.
10. COMMITMENTS
Except for as disclosed in Note 2(c), there has been no other material change to the leasing and financing commitments disclosed in the most recent annual financial report.
Capital commitments contracted for at the reporting date but not recognised as liabilities was $24.4 million (30 June 2019: $158.8 million).
11. DIVIDENDS PAID AND PROPOSED
No dividends have been paid or declared by the Group during the half year or to the date of this report.
12. EVENTS AFTER THE REPORTING DATE
No events after reporting date that require disclosure have occurred.
Page 24 of 28
SENEX ENERGY LIMITED
ABN 50 008 942 827
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Senex Energy Limited, I state that:
In the opinion of the Directors:
- the financial statements and notes of Senex Energy Limited and its controlled entities (collectively known as "the Group") are in accordance with the Corporations Act 2001, including:
- giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its performance for the half year ended on that date; and
- complying with Accounting Standard AASB 134 "Interim Financial Reporting" and the Corporations Regulations 2001; and
- there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable
On behalf of the Board
Trevor Bourne
Chairman
Brisbane, Queensland
20 February 2020
Page 25 of 28
Ernst & Young | Tel: +61 2 9248 5555 |
200 George Street | Fax: +61 2 9248 5959 |
Sydney NSW 2000 Australia | ey.com/au |
GPO Box 2646 Sydney NSW 2001 |
Auditor's Independence Declaration to the Directors of Senex Energy Limited
As lead auditor for the review of the half-year financial report of Senex Energy Limited for the half-year ended
31 December 2019, I declare to the best of my knowledge and belief, there have been:
- no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
- no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Senex Energy Limited and the entities it controlled during the financial period.
Ernst & Young
Anthony Jones
Partner
20 February 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young | Tel: +61 2 9248 5555 |
200 George Street | Fax: +61 2 9248 5959 |
Sydney NSW 2000 Australia | ey.com/au |
GPO Box 2646 Sydney NSW 2001 |
Independent Auditor's Review Report to the Members of Senex Energy Limited.
Report on the Half-Year Financial Report
Conclusion
We have reviewed the accompanying condensed half-year financial report of Senex Energy Limited (the Company) and its subsidiaries (collectively the Group), which comprises the statement of financial position as at 31 December 2019, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.
Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001, including:
- giving a true and fair view of the consolidated financial position of the Group as at 31 December 2019 and of its consolidated financial performance for the half-year ended on that date; and
- complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Directors' Responsibility for the Half-Year Financial Report
The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group's consolidated financial position as at 31 December 2019 and its consolidated financial performance for the half- year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Ernst & Young
Anthony Jones | Matthew Taylor |
Partner | Partner |
Sydney | Brisbane |
20 February 2020 | 20 February 2020 |
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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Senex Energy Limited published this content on 21 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2020 00:16:01 UTC