ASX Announcement

Release Date: 11 March 2020

Senex delivers transformational growth through its Surat Basin investments

Senex Energy Limited (Senex, ASX:SXY) today announced its growth transformation is forecast to deliver a step-change in annual production, cashflow and earnings from successful delivery of its Surat Basin gas development projects.

Through its best-in-class project execution performance, Senex is successfully establishing a diversified and resilient cashflow profile, with a free cashflow breakeven Brent oil price of less than US$30/bbl.

Senex today, via its Investor Briefing, outlined further details regarding its transformation:

  • Production is forecast to triple from FY19 levels to more than 3.6 mmboe in FY22, without growth capital expenditure.
  • Annual EBITDA of $100-110 million and free cashflow of $70-90 million from FY22, the first full year of Surat Basin plateau production.
  • Rapid de-leveraging of Senex's Balance Sheet, with peak net debt of less than $80 million in Q1 FY21, and Net Debt:EBITDA in FY22 of less than 0.5x.
  • FY20 production guidance re-affirmed at 1.8-2.0 mmboe, with EBITDA guidance of $40-50 million.
  • Surat Basin development capital expenditure savings due to production outperformance; well count reduced by more than 20% to 85 wells.

Speaking at the Company's Investor Briefing, Senex Managing Director and CEO Ian Davies said "The high- quality, low-cost nature of our Surat and Cooper Basin assets, together with our best-in-class execution capability, has enabled Senex to deliver a transformation in our business.

"Senex's robust Balance Sheet, proactive hedging strategy and approach to gas contracting provide Senex with resilient cashflows to support the execution and ramp-up of our Surat Basin gas development projects.

"Continued focus on free cashflow generation and enhancing shareholder value is evident in our Surat Basin development capital expenditure reductions, also announced today", Mr Davies said.

Roma North continues its strong performance and has now reached the plant's initial capacity milestone of 16 TJ/day, or around 6 PJ/year, more than 12 months ahead of schedule.

Based on outperformance of wells to date, Senex today announced it has completed its Roma North drilling campaign, with just 35 wells of the originally planned 50 wells required to reach initial plateau production.

Senex Energy Limited

Head Office

Phone +61 7 3335 9000

ABN 50 008 942 827

Level 30, 180 Ann Street, Brisbane Qld 4000

Facsimile +61 7 3335 9999

ASX: SXY

GPO Box 2233, Brisbane Qld 4001

Web www.senexenergy.com.au

Page 1 of 2

At Atlas, Senex has reviewed the strong initial production performance of the initial 23 wells drilled and leveraged learnings from Roma North. This has resulted in a reduction to the number of wells required to reach initial plateau production from the originally planned 60 wells to 50 wells.

Further, Senex has reviewed its Atlas capital program and identified an opportunity to build, own and operate critical Atlas water treatment infrastructure, and remove ongoing water treatment tolls over the life of Atlas. This opportunity is value accretive to Senex, with investment of approximately $15 million materially reducing ongoing water treatment operating costs and increasing operational flexibility.

After the reduction of 25 wells and the inclusion of Atlas water treatment infrastructure, Senex expects net capital expenditure for its Surat Basin capital program to reduce by around $15 million, within original capital expenditure guidance.

Given outperformance at Roma North and long term gas offtake, as previously announced Senex has entered FEED on the low-cost 8 TJ/day expansion of the gas processing facility to 24 TJ/day, or around 9 PJ/year. Senex expects to finalise FEED in H2 FY20.

"This expansion project promises to be low-risk with fast cash returns given the modular processing facility design, more than 20 years of 2P reserves coverage at 24TJ/day, and ready land access and other approvals.

"Careful progression through FEED demonstrates both Senex's disciplined approach to capital investment and the low-riskhigh-return opportunities within our current portfolio", Mr Davies said.

Ends

The Investor Briefing will be streamed live via the following link:https://webcast.openbriefing.com/5932/

A copy of the Senex Energy Investor Briefing slide pack is attached.

Authorised by:

Investor enquiries:

Ian Davies

Derek Piper

Paul Larter

Managing Director and CEO

Senior Advisor - Investor Relations

Communications Manager

Senex Energy Ltd

Senex Energy Ltd

Senex Energy Ltd

Phone: +61 7 3335 9000

Phone: +61 7 3335 9000

Phone: +61 400 776 937

About Senex

Senex is an ASX-listed, growing and independent Australian oil and gas company with a 30-year history. We manage a strategically positioned portfolio of onshore oil and gas assets in Queensland and South Australia, with access to Australia's east coast e nergy market. Senex is focused on creating sustainable value for shareholders by leveraging our capability as a low cost, efficient and safe explorer and producer.

Senex Energy Limited

Head Office

Phone +61 7 3335 9000

ABN 50 008 942 827

Level 30, 180 Ann Street, Brisbane Qld 4000

Facsimile +61 7 3335 9999

ASX: SXY

GPO Box 2233, Brisbane Qld 4001

Web www.senexenergy.com.au

Page 2 of 2

Senex Energy Investor Briefing

11 March 2020

Senex Energy Investor Briefing

11 March 2020

2

Agenda

Topic

Presenter

Title

Senex transformation driving shareholder value

Ian Davies

Managing Director and Chief Executive Officer

East coast gas market dynamics

Neil Sutherland

EGM Commercial and Corporate Affairs

Financial strength and discipline

Mark McCabe

Chief Financial Officer

Project delivery and operational excellence

Peter Mills

Chief Operating Officer

Wrap-up

Ian Davies

Managing Director and Chief Executive Officer

Q&A

Senex Energy Investor Briefing

Compliance Statement

Important information

This presentation has been prepared by Senex Energy Limited (Senex). It is current as at the date of this presentation. It contains information in a summary form and should be read in conjunction with Senex's other periodic and continuous disclosure announcements to the Australian Securities Exchange (ASX) available at: www.asx.com.au. Distribution of this presentation outside Australia may be restricted by law. Recipients of this document in a jurisdiction other than Australia should observe any restrictions in that jurisdiction. This presentation (or any part of it) may only be reproduced or published with Senex's prior written consent.

Opinions and forward looking statements

This presentation contains opinions and forward looking statements (such as guidance, projections, forecasts, targets, outlooks) and other material. Unless expressly stated as guidance, a statement given in this presentation is not guidance. Opinions and forward-looking statements in this presentation involve known and unknown risks, assumptions and uncertainties, many of which are beyond Senex's control. Details on the key underlying assumptions used in this presentation are set out on this page and for a summary of the key risks facing Senex refer to the 2019 Annual Report. As a result, while it is believed that the expectations reflected in the opinions and forward looking statements in this presentation are reasonable they may be affected by a variety of variables and changes in the underlying assumptions on the basis on which they are formed which could cause actual outcomes or results to differ materially from that stated or implied by the opinions or forward-looking statements. Accordingly, Senex cautions against placing undue weight on such opinions or forward-looking statements.

No investment advice

The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial advice or financial product advice. Before making an investment decision, recipients of this presentation should consider their own needs and situation, satisfy themselves as to the accuracy of all information contained herein and, if necessary, seek independent professional advice.

Disclaimer

To the extent permitted by law, Senex, its directors, officers, employees, agents, advisers and any person named in this presentation:

  • give no warranty, representation or guarantee as to the accuracy or likelihood of fulfilment of any assumptions upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this presentation;
  • accept no responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation.

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3

Assumptions

Opinions, projections, forecasts, targets, and outlook statements given in this presentation are not guidance. As explained above, forward looking statements involve uncertainty and are subject to change. Opinions and forward looking statements in this presentation have been formed on the key concepts and

assumptions outlined below. They have not been subject to audit or review Senex's external auditors.

Foundation Asset Base

References throughout this presentation to Foundation Asset Base relate to full year FY22 performance from the following assets:

  • Atlas gas assets; 32 TJ/day nameplate capacity;
  • Roma North gas assets; 16 TJ/day nameplate capacity;
  • Cooper Basin producing oil and gas assets; internal estimates of production.

The Foundation Asset Base does not include additional capital expenditure on exploration, appraisal, development or infrastructure, however does include maintenance capital expenditure for the Cooper Basin, and sustaining capital expenditure to maintain plateau production at Atlas and Roma North.

Financial metrics / assumptions

  • US$65/bbl Brent oil price;
  • A$:US$ exchange rate of 0.67;
  • Atlas uncontracted gas price (ex-Wallumbilla) of $8.50/GJ;
  • Atlas contracted gas price per existing gas sales agreements;
  • Roma North oil-linked gas price per existing gas sales agreement;
  • Unit operating costs are all-in, including field operating costs, tolls, tariffs and royalties;
  • Various other economic and corporate assumptions.

Project-related assumptions

  • Assumptions regarding drilling results;
  • Expected future development, appraisal and exploration projects being delivered in accordance with their current project schedules.

Financial definitions

  • EBITDA = Earnings before interest, tax, depreciation and amortisation
  • FCF = Free cashflow = Operating cashflow less debt financing costs less sustaining capital expenditure
  • FCF breakeven = The average annual oil price whereby cashflows from operating activities before tax equate to cashflows from investing activities less discretionary expenditure
  • ND = Net debt = Total interest bearing liabilities less cash
  • ND:EBITDA = Ratio of Net debt to EBITDA

Senex Energy Investor Briefing

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4

Senex transformation driving shareholder value

Senex Energy Investor Briefing

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5

Value proposition from Senex transformation

Cash generation from high-return portfolio and project execution excellence to drive shareholder returns

Core focus on cash

generation, shareholder

returns and low-risk

high-return growth

Full year production contribution in FY22, targeting1

  • EBITDA $100-110m
  • FCF $70-90m
  • ND:EBITDA <0.5x

Proven best-in-class low

cost project execution

and asset operating

capabilities

Cash generation

supports

  • Debt repayment
  • Shareholder returns
  • Disciplined growth

Strong stable cashflows

from Surat and Cooper

Basins - proven

hydrocarbon Basins

Expansion and

acceleration opportunities

Low-riskhigh-return

opportunities within

existing reserves and

asset base

Resilient cashflows from

low cost operations and

fixed price gas

contracts:

FCF breakeven at

<_us24_30 bbl="" brent="">1

Diversification

and growth

  • Disciplined review of growth opportunities to build portfolio quality and scale

1. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

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6

Senex Purpose, Mission and Values

What guides us

Our Purpose

Our Mission

A growing and independent company, providing oil and gas to improve lives and support the energy needs of Australia and the world.

  • We protect our people and the environment
  • We build quality relationships with our customers, partners and stakeholders
  • We deliver what we promise
  • We attract and retain talented people with drive and energy
  • We create value for our investors

Our Values

Senex Energy Investor Briefing

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7

Committed to people, environment and community

A strong focus on safety and sustainability across our operations and communities

People

Environment

Community

Improved safety outcomes and performance

  • Continued improvement in safety performance
  • Nil Long Term Injury frequency rate in H1 FY20
  • Improving TRIFR of 5.4 in H1 FY20
  • Continued focus on contractor management, incident reporting, behavioural safety and safety leadership

New environmental initiatives implemented

  • Continued excellent environmental performance
  • Establishment of a 168ha environmental
    offset program with local landowners, providing improved habitat for endangered species
  • Funding assistance for the Wild Desert conservation project
  • Water supply to drought affected graziers through the Roma North irrigation scheme

Continuing support for our communities

  • Ongoing commitment to employing local businesses, staff and contractors
  • Supporting initiatives within our communities:
    Wandoan State School's Greener Ovals, Water4All and STEM workshops and Roma's ColourXplosion fun run
  • Continuing 24 hour availability of helicopter medical evacuations in the Cooper Basin

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The Senex transformation

Proven best-in-class low cost execution and operating capabilities in proven hydrocarbon basins

Production growth

Asset and

Product

Diversification

FY17FY20

(Historical)

(Guidance)

0.8

1.8 - 2.0

mmboe

mmboe

19%

35% 44%

65%

100%

37%

100%

FY22

(Target)

3.6+

mmboe1

16%

Cooper Basin

14%

Roma North

56%

Atlas

28%

86%

Oil production

Gas and gas liquids production

EBITDA

($1.4m)

$40m - $50m

$100m - $110m

NB. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

1. Represents Foundation Asset Base, which excludes capital expenditure on exploration, appraisal, development or infrastructure, however does include maintenance capital expenditure for the Cooper Basin, and sustaining capital expenditure to maintain plateau production at Atlas and Roma North

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Senex executive and management

Experienced and dedicated leaders and staff

Executive role

Name

Commenced

Industry experience

Past experience

Managing Director and

Ian Davies

2010

20+ years

BG Group, QGC, Barclays Capital

Chief Executive Officer

Chief Financial Officer

Mark McCabe

2019

25+ years

APLNG, Origin Energy, PwC

Chief Operating Officer

Peter Mills

2018

35+ years

BHP, Hess, Woodside

EGM Commercial

Neil Sutherland

2019

30+ years

Total, BHP

and Corporate Affairs

Executive General Manager

Suzanne Hockey

2016

25+ years

Oil Search, Barrick

People & Performance

Company Secretary and

David Pegg

2013

30+ years

Ergon Energy, Blake Dawson

General Counsel

Surat Basin Business Unit

Darren Stevenson

2012

25+ years

Arrow Energy, AGL, APA

Manager

Senex Energy Investor Briefing

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Senex operating model

Framework for cashflow generation, shareholder returns and disciplined growth

Senex asset lifecycle

Senex asset portfolio discipline

Senex capital allocation discipline

Oil and Gas

Production

Domestic Gas

Marketing

Reserves

Development

Exploration

  • Asset portfolio within proven hydrocarbon basins
  • Portfolio free cashflow breakeven <_us24_30 bbl="" brent="">1
  • Strong balance sheet and low-risk debt profile: target ND:EBITDA <0.5x1
  • Growing domestic customer base with long term fixed price gas contracts
  • Proactive oil hedging program
  • Debt repayment
  • Returns to shareholders
  • Low cost development of existing oil and gas reserves
  • Near-fieldexploration opportunities
  • Disciplined review of growth opportunities to build portfolio quality and scale

1. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

Senex Energy Investor Briefing

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11

Developing Senex's oil and gas reserves

Low-risk,high-return organic growth options within existing asset portfolio

2P reserves (as at 30 June 2019)

Surat Basin 2P gas reserves

26

210

Surat Basin (as at 30 June 2019)

  • Potential for material Atlas reserves growth through current and future work programs

612 PJ

232

144

Roma North developed

Roma North undeveloped

Atlas

Other Western Surat

Senex Energy 2P reserves

7

111 mmboe

104

  • Initial Roma North expansion project entered FEED (16TJ/day to 24TJ/day)
  • Significant Roma North 2P reserves provide strong foundation for current and future expansion projects
  • Favourable economics with long-term gas offtake

Cooper Basin (as at 30 June 2019)

  • 4.3 mmbbl 2P undeveloped reserves with 7.3 mmbbl total 2P reserves (as at 30 June 2019)
  • Low-risk,high-return development projects to bring oil to market over FY21 and FY22

Cooper Basin

Surat Basin

NB. For further information on Senex reserves, refer to ASX announcement dated 20 August 2019; Senex currently

updates its reserves and resources position annually in conjunction with its full year financial results

Senex Energy Investor Briefing

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12

Delivering material and sustainable free cashflow

Targeting $70-90 million of annual free cashflow from FY22 from Foundation Asset Base

$ million

100 - 110

20 - 30

110

90

70 - 90

70

50

40 - 50

30

10

(1.4)

(10)

FY17

FY20 EBITDA

FY22 Target

FY22 Target

FY22 Target

EBITDA

(Guidance)

EBITDA

Sustaining

Free Cashflow

Capex

A highly cash generative Foundation Asset Base

  • Material EBITDA and free cashflow generation from Foundation Asset Base
  • Resilient free cashflow break even at <_us24_30 bbl="" brent="">

References to Foundation Asset Base relate to full year FY22 performance from the following assets:

  • Atlas gas assets; 32 TJ/day nameplate capacity;
  • Roma North gas assets; 16 TJ/day nameplate capacity;
  • Cooper Basin producing oil and gas assets; internal estimates of production.

The Foundation Asset Base does not include additional capital expenditure on exploration, appraisal, development or infrastructure, however does include maintenance capital expenditure for the Cooper Basin, and sustaining capital expenditure to maintain plateau production at Atlas and Roma North

Sensitivities (all relate to full year FY22 analysis):

  • Brent oil price: +/- US$10 Brent oil price = +/- A$13m free cashflow
  • Atlas gas price (ex-Wallumbilla): +/- A$1 gas price = +/- A$6m free cashflow
  • Australian dollar: +/- 1 cent AUD = -/+ A$1.4m free cashflow

NB. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions.

FY22 target key assumptions include: US$65 Brent oil, A$:US$ exchange rates of 0.67, Atlas uncontracted gas price of A$8.50/GJ; Atlas contracted gas price per existing gas sales agreements, Roma North oil linked gas price per existing gas sales agreement; unit operating costs are all-in, including field operating costs, tolls, tariffs and royalties.

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13

Senex east coast gas assets the enabler

FY22 target production to triple vs FY19, with long term gas contracts providing strong, stable cashflows

Natural gas >75% of FY22 target production

mmboe

4.0

+200%

2.0

3.6+

0.0

1.2

FY19 production

FY22 target production

FY22 targeted production mix1

16%

Cooper Basin

Roma North

3.6+

mmboe

56%

Atlas

28%

Strong margin generation through operational excellence and

rigorous cost control

  • Proven ability to find innovative solutions for developing and producing oil and gas resources
  • Low cost oil producer in the Cooper Basin with field operating costs of <_a24_10>
  • Low operating costs in the Surat basin; FY22 full year targets:
    • Unit operating costs <$3/GJ (all-inclusive)2
    • Well availability >95%
    • Well mean time between failure >24 months
    • Maintenance drilling and stay in business capital expenditure of $20-30 million (Surat and Cooper basins)
  1. Represents Foundation Asset Base, which excludes capital expenditure on exploration, appraisal, development or infrastructure, however includes maintenance and sustaining capital expenditure; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions
  2. Unit operating costs are all-in, including field operating costs, tolls, tariffs and royalties; royalties calculated using Foundation Asset Base definition and assumptions

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Disciplined approach to capital allocation

Maintaining financial strength for pursuit of sustainable growth in shareholder value

Balance Sheet and capital

management initiatives

  • Maintain robust balance sheet at all times
  • ND:EBITDA <0.5x1
  • FCF breakeven <_us24_30>1
  • Rapid de-leveraging
  • Committed to commencing capital management initiatives from free cashflow

Expansion and acceleration

Review of diversification and

opportunities

growth opportunities

Roma North expansion up to 50 TJ/day;

Disciplined approach to review

24 TJ/day first phase in FEED

of growth opportunities

Appraisal and development of broader

Farm-ins / joint ventures /

Western Surat acreage

acquisitions

Production acceleration of Atlas

Farm-outs / disposals

2P reserves into market opportunity

Strict focus on capability

Gemba gas field appraisal

alignment and time to cashflow

  • Near field Cooper Basin exploration

1. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

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East coast gas market dynamics

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16

Strategic east coast gas portfolio

Gas acreage and processing facilities linked to key domestic markets

Committed to delivering increased gas supply into the east coast market

Diversified gas acreage in Queensland and South Australia

Opportunities for expansion and growth to meet forecast supply-demand gap from 2024

Infrastructure partnership with Jemena supports expansion and growth

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Gas supply remains tight

Undeveloped gas reserves critical to future supply

Forecast east coast gas supply-demand fundamentals

Outlook tight for the medium term

East coast gas market now linked to global LNG market

Suppressed LNG spot pricing and increased supply from LNG producers to domestic market

Longer term supply fundamentals however remain strong

Rebound in LNG demand expected

Residual uncertainty in indigenous supply

Material investment needed to meet demand - development of undeveloped 2P and 2C resources

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Limited spot price exposure in Senex gas portfolio

Atlas long term fixed price gas contracts signed and more under negotiation

Contract prices reflect term, risk and transportation

Source: ACCC Gas Inquiry 2017 - 2025 Interim Report, January 2020; gas prices offered by producers in Queensland for 2020 supply

Surat Basin gas volumes 95% contracted in calendar year 2020

100%

38%

40%

50%

95%

62%

60%

0%

CY2020

CY2021

CY2022

Surat Basin contracted gas

Surat Basin uncontracted gas

  • Atlas domestic gas sales to CleanCo, CSR and Orora commenced on schedule at fixed prices
  • Atlas portfolio now comprises:
    • Six customers for supply of 32 PJ1 at fixed prices
    • Mix of firm supply and put arrangements
    • Attractive pricing and terms
  • Term contract negotiations for Atlas gas ongoing
  • Working collaboratively to underwrite new developments and projects

1. Refer ASX announcement dated 23 January 2020

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Financial strength and discipline

Senex Energy Investor Briefing

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20

Strong financial position to deliver growth

Financial resilience in a low oil price environment with free cashflows growing rapidly

Peak net debt in

Resilient cashflow

Q1 FY21

breakeven

<$80 million

<_us24_30>

FY20 EBITDA guidance

FY22 EBITDA target

$40-50 million

$100-110 million

Proactive oil hedging

>500,000 bbl at A$90-95/bbl

FY22+ annual free cashflow target

$70-90 million

NB. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

Senex Energy Investor Briefing

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Committed debt facility to deliver base business

Expecting peak net debt below $80 million in Q1 FY21

Senior secured reserves-based lending facility

Debt facility:

$125 million (fully drawn)

Bank guarantee facilities:

$35 million

Total borrowing facility:

$160 million

Strong liquidity as at 31 December 2019

$ million

Cash reserves

Drawn debt

150

100

50

122.7

-

(50)

(125.0)

(100)

(150)

31-Dec-19

  • Surat Basin work programs funded through debt, cash reserves and partnership with Jemena
  • Reserves-baseddebt funding secured, unique for a greenfield gas development
  • Competitive pricing; supportive bank group
  • Fully drawn for remaining Surat activities
  • Standard covenants; no market capitalisation covenants
  • No penalty for early repayment or refinance

Senex Energy Investor Briefing

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Revenue protection during project execution

Proactive hedging has protected cashflows for delivery of Surat Basin gas development projects

H2 FY20 Production Mix

(January - June 2020)

29%

Cooper Basin

38%

Roma North

1.0 - 1.2

mmboe

Atlas

33%

  • >500,000 barrels of oil production hedged at A$90-95/bbl
  • Atlas gas fully contracted at fixed prices for FY20 and 95% contracted at fixed prices for calendar year 2020
  • Cooper Basin gas fully contracted on fixed prices

Oil swaps

H2 FY20

FY21

(Jan-Jun 2020)

Volume (kbbl)

199

318

Weighted average swap price (US$/bbl)

70

67

Weighted average swap price (A$/bbl)

95

90

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Materially reduced oil price volatility in portfolio

Attractive mix of fixed price gas production and oil price exposure

Foundation Asset Base target production

Delivering Senex's Foundation Asset Base by end FY21

in FY221

Cooper Basin

16%

Atlas gas

32 TJ/day

Fixed price

(~2 mmboe/year)

Roma North

Surat Basin

Atlas

3.6+

36%

Roma North gas

16 TJ/day

Oil linked

(~1 mmboe/year)

Oil price exposure

mmboe

56%

64%

28%

Fixed price

Cooper Basin Oil, gas, gas liquids

0.8 - 0.9 mmboe

Fixed price gas

(FY20 guidance)

Oil linked gas liquids

1. Represents Foundation Asset Base, which excludes capital expenditure on exploration, appraisal, development or infrastructure, however does include maintenance and sustaining capital expenditure; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

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Disciplined approach to capital management

Maintaining financial strength for pursuit of sustainable growth in shareholder value

Operating cashflow

Debt funding

Proven

stewardship of

shareholder

capital

Revenue protection

Capital allocation

(hedging / fixed pricing)

framework

Capital allocation framework

Debt repayment

Returns to shareholders

Low cost development of existing oil and

gas reserves

Near-field exploration opportunities

Disciplined review of growth opportunities

to build portfolio quality and scale

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Project delivery and operational excellence

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Operational excellence

Senex delivers best in class execution and cost discipline

  • A strong focus on safety and environment across our operations and communities
  • Ongoing commitment to quality relationships with our customers, partners and stakeholders
  • Optimising production to maximise recovery
  • Strong margin generation through operational excellence and rigorous cost control
  • Delivering value via innovative solutions for developing and producing oil and gas resources
  • Listening and engaging with our people to find better ways to do things

First domestic gas sales at Atlas

Horizontal well section - periscope inversion response

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Surat Basin production continues to outperform

25 less wells required for initial Surat Basin gas production target of 48 TJ/day (~18 PJ/year)

Wells

Gas facilities

Water treatment

Other infrastructure

Roma North

Atlas

50 wells planned,

60 wells planned,

reduced to 35 wells; all

reduced to 50 wells;

wells drilled

23 wells drilled

16 TJ/day processing

32 TJ/day plus 8 TJ/day

redundant processing

capacity constructed and

capacity constructed by

sold to Jemena

Jemena

Low cost irrigation

Senex owned water

treatment infrastructure

solution with landholder

under construction

5 km pipeline to GLNG

60 km pipeline to

infrastructure constructed

Wallumbilla hub

and sold to Jemena

constructed by Jemena

First 23 wells of

Daily Surat Basin gas production (TJ)current Atlas drilling campaign brought on

production

First 10 wells of current

Roma North drilling campaign brought on production

Start of Roma North facility commissioning

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Operational excellence in the Surat Basin

Driving best-in-class operational performance

1. A trusted partner

  • Relationships with >60 landholders and >30 community groups
  • Modest capital investment to transform produced water for landholders
  • Supporting local schools, businesses and groups improve the quality of life in the communities in which we operate

2. Best-in-class drilling and completioncycle times1

Days

7 6.3 days45% reduction on average drill time

6

5.4 days

5

3.4 days

4

2.8 days

3

2

1

-

Well #1 - 10 Well #11 - 33 Well #34 - 51

Best

3. Solid performance to date during ramp-up

Achievable FY22 full year targets:

  • Well availability >95%
  • Mean time between failure >24 months
  • Unit operating costs <$3/GJ (all-inclusive cost, including field operating costs, tolls, tariffs and royalties)

4. Scaleable expansion opportunities - Roma North

1. Drill cycle times measured from spud to spud

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Maintaining Cooper Basin production

Efficient field development and continued cost discipline

1. Continued low cost efficient operations

  • Safe and efficient operations
  • Rigorous cost discipline
  • Excellent project execution
  • Maximising reservoir recoveries

2. Sustaining production through efficient development

  • Growler oil field continues to deliver

ProductionGrowler bbl/day

3000

3

horizontal

wells

2000

1000

0

2014

2015

2016

2017

2018

2019

2020

3. Western flank near field extension

  • Material exploration upside
  • Drill ready prospects
  • High impact potential

Senex Energy Investor Briefing

11 March 2020

30

Wrap-up

Senex Energy Investor Briefing

11 March 2020

31

Key takeaways

A compelling value proposition from Senex transformation

Senex transformation driving a step change in the company

Maximising shareholder returns from existing reserves base

Portfolio free cashflow break even <US$30/bbl1 Brent oil

Robust balance sheet and fully funded to plateau production

Disciplined capital allocation framework from cash generation

  • Production targeted to more than triple from FY19 to FY22
  • Targeting significant growth in free cashflow to $70-90 million in FY22
  • Shareholder returns driven by high quality diversified portfolio and execution excellence
  • Exploit low-risk,high-return opportunities within the existing reserves and asset base
  • Resilient cashflows from high quality, low cost operations, fixed price gas contracts and proactive hedging programs
  • Target Net Debt : EBITDA below 0.5x at plateau production in FY22
  • Forecast strong free cashflow generation to allow rapid de-gearing
  • Transformation to drive capital management initiatives from free cashflow
  • Quality low-risk,high-return expansion and acceleration opportunities from existing portfolio
  • Disciplined review of diversification and growth opportunities

1. Figures represent contribution from Foundation Asset Base from FY22; refer to slide 3 (Compliance Statement) for further detail regarding definitions and assumptions

Senex Energy Investor Briefing

11 March 2020

32

Q&A

Senex Energy Investor Briefing

11 March 2020

33

Investor Enquiries

Ian Davies

Derek Piper

Managing Director and CEO

Senior Advisor - Investor Relations

(07) 3335 9000

(07) 3335 9000

Level 30, 180 Ann Street

info@senexenergy.com.au

Brisbane, Queensland, 4000 Australia

(07) 3335 9000

www.senexenergy.com.au

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Senex Energy Limited published this content on 11 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2020 22:44:06 UTC