Senex Energy : AGM addresses by Chairman and MD

AGM addresses by the Chairman and Managing Director

Release Date: 15 November 2018

Senex Energy Ltd (Senex, ASX: SXY) releases the addresses to be presented by the Chairman and Managing Director at the Company's Annual General Meeting today at the Stamford Plaza Hotel, Brisbane from 9.30am (AEST).

FURTHER INFORMATION

Investor and media enquiries:

Ian Davies	Derek Piper	Paul Larter
Managing Director and CEO	Head of Investor Relations and Treasury	Communications Manager
Senex Energy Ltd	Senex Energy Ltd	Senex Energy Ltd
Phone: [phone]	Phone: [phone]	Phone: [phone]
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 energy 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 Ltd	Head Office	Phone [phone]
ABN 50 008 942 827	Level 31, 180 Ann St, Brisbane Qld 4000	Facsimile [phone]
ASX: SXY	GPO Box 2233, Brisbane, Qld, Australia 4001	Webwww.senexenergy.com.au

Chairman's Address

Chairman's Address to the Annual General Meeting 2018

Good morning ladies and gentlemen. It is a real pleasure to be with you today.

This is an exciting time for your company. The hard work of the last few years in pursuing our strategy is laying the groundwork for Senex to thrive for years to come.

Last month your company announced that it had closed its $150 million debt facility and that Final Investment Decisions had been taken for Roma North, which is part of the Western Surat Gas Project, and Project Atlas in the Surat Basin. The Board also sanctioned multi-year work programs for those developments. We have already begun to see our plans becoming reality, with construction commencing at the Roma North processing facility earlier this week. These projects will establish Senex as a material supplier of natural gas on the east coast.

After the challenging years of sub-$50 Brent oil, we have been back on a growth path over the past year. This has delivered increased reserves, production, revenue and operating cashflow. While market conditions have been more favourable for your company in 2018, we have made the most of the oil price recovery with a continued focus on capital management. A good example is the transaction we agreed with Beach Energy to transfer up to $43 million of free carry for them to fund our drilling activity in the prolific western flank of the Cooper Basin this financial year. This program has already delivered success, with two commercial oil discoveries to date, and is progressing this year.

In operations, we continue to deliver successful outcomes, leveraging our capability and our strategically located acreage. The Cooper is Senex's traditional business where the company is an established low-cost oil producer. This basin is also firmly part of our future.

At this point I would like to talk briefly about our most important priority - safety. This is an area of increasing attention for our leadership team and our people, especially with the level of operational activity about to ramp up as we progress our major gas projects. We are also working with our industry partners to share learnings.

Senex remains active in Queensland's Safer Together group, a gas industry safety forum established in 2014 with more than 100 member companies. Our continued participation in the group reinforces our commitment to consistent and continuous improvement of safety standards across the industry. To be absolutely clear, our goal for our staff, contractors and communities is zero incidents and zero injuries.

Your company takes a similarly prudent approach to capital management. The Board and executive team take our responsibility as stewards of your capital very seriously. This has always been a hallmark of Senex and will continue to be as we move into a phase of investing for growth.

As mentioned in my earlier remarks, Senex has closed the $150 million corporate and development debt facility with ANZ to fund construction of the Surat Basin gas projects. This followed an extensive assessment of bank and non-bank debt financing alternatives to secure the best option

Senex Energy Ltd	Head Office	Phone [phone]
ABN 50 008 942 827	Level 31, 180 Ann St, Brisbane Qld 4000	Facsimile [phone]
ASX: SXY	GPO Box 2233, Brisbane, Qld, Australia 4001	Webwww.senexenergy.com.au

Chairman's Address

for this stage of our development. As shareholders, we should all be pleased with the favourable terms on which this debt facility has been closed.

Casting our view outside the company, the availability of affordable, reliable and sustainable energy has continued to be the focus of public policy debate this year. The Federal Government, as part of its planned solution to ensuring sufficient gas supply for future energy needs, continues to monitor the market for the year ahead through the Australian Domestic Gas Security Mechanism, introduced in 2017. Gas producers have responded for the second year by ensuring sufficient gas is available for domestic needs. In this context, neither the gas industry nor governments can afford to be complacent about the importance of new gas supply.

It is equally apparent that developing Australia's abundant gas resources will be critical to address tightness in the east coast market. Increasing the amount of gas available for sale by creating new sources of supply and competition will enhance security of supply and reduce pressure on prices. Let's not forget that gas, with low emissions compared to coal, is a fuel that supports the transition towards a lower carbon future. While some choose to disregard the facts to suit their ideological views, it is obvious that not all renewable energy options yet have the characteristics required for secure reliable energy. There will be a mix of solutions and gas will play a significant role.

Having taken Final Investment Decisions on our Surat Basin gas development projects, Senex is playing its part in helping to meet the broader public policy challenge. Project Atlas is the natural gas permit in Queensland's Surat Basin that was awarded to your company in September 2017. This gas will be developed and produced by Senex solely for domestic customers. Senex strongly supports the Queensland Government's policy to increase gas supply to the domestic market. We are delighted to be developing this high-quality acreage.

Gas producers need regulatory stability to invest in unlocking these resources. The demise of the National Energy Guarantee, which Senex supported, was a disappointing development. However, there is hope that at the COAG meeting of energy ministers in December the Commonwealth, states and territories will agree a reliability obligation similar to that which was originally proposed in the National Energy Guarantee. Agreement would be in the national interest as a positive step towards ensuring reliable, secure and affordable energy needed by industry and consumers. Again, we applaud the Queensland Government for its innovative approach.

Let me now discuss one of today's agenda items. I acknowledge the concerns of some shareholders, but more particularly governance advisers, who have questioned the proposed grant of Strategic Business Milestone rights to our Managing Director and CEO, Ian Davies - the subject of Resolution 5. The Board considers it important that the current leadership of Mr Davies continue during the critical Surat Basin project delivery period. We are proposing the one-off grant of these rights as a way of ensuring leadership continuity and securing value to shareholders. At the end of the milestone delivery period, the Board will assess the delivery of the two projects against our pre-established development plans with a focus on budget and schedule. The grant of these rights is also subject to there being a positive total shareholder return over the milestone delivery period. I am confident this is the right decision for our business.

At this point I would like to acknowledge changes to the Board since last year's Annual General Meeting.

Senex Energy Ltd	Head Office	Phone [phone]
ABN 50 008 942 827	Level 31, 180 Ann St, Brisbane Qld 4000	Facsimile [phone]
ASX : SXY	GPO Box 2233, Brisbane, Qld, Australia 4001	Webwww.senexenergy.com.au

Chairman's Address

Yanina Barila resigned from the Board in December 2017 following the sale of Sentient's stake in Senex. Yanina and Sentient made important contributions to Senex's growth and, on behalf of the Board, I thank them for their efforts. In January 2018 EIG Global Energy Partners Managing Director Andy Zhmurovsky joined the Board. Andy, it's good to have you - literally - on Board. Andy contributes valuable insights from his wealth of experience of more than 20 years managing investments in energy projects in Australia and internationally. The company is fortunate to have very experienced and competent directors and I would like to thank them for the support and guidance they have given me over the past 12 months.

Our efforts as Directors are only as good as the ability of the executive team and staff to put strategy into action. On behalf of the Board, I would like to applaud Ian, his executives and employees for a year of strong performance.

Our sincere thanks also go to the wide range of external stakeholders without which our business could not operate: our landholders; the communities in which we operate; our community partners; contractors; suppliers; and government stakeholders at all levels.

Ladies and gentlemen, thank you for your continued support of Senex and for your attendance today. Let me finish by reflecting on our positive prospects.

By returning to growth over the past 12 months, Senex has consolidated its position of strength and is embarking on an exciting new chapter in our story. More broadly, as shareholders you can be proud that your company is making an important contribution to the Australian energy market, the economy and broader society.

In conclusion, and on behalf of the Board, I'm certainly looking forward to a tremendous year for Senex - one that will deliver on our strategy, which firmly remains:

• • Realising the near-term potential in the Australian east coast gas market;

• • Focusing our material exploration and production position in Cooper Basin oil; and

• • Pursuing potential opportunities in new markets and new ventures that align with our core skills.

This is a remarkable way to begin celebrations for the 35th year of Senex as a public company in 2019.

Thank you.

Trevor Bourne

15 November 2018

Senex Energy Ltd	Head Office	Phone [phone]
ABN 50 008 942 827	Level 31, 180 Ann St, Brisbane Qld 4000	Facsimile [phone]
ASX : SXY	GPO Box 2233, Brisbane, Qld, Australia 4001	Webwww.senexenergy.com.au

Managing Director's Address

Managing Director's Address to the Annual General Meeting 2018

Good morning ladies and gentlemen. It's an absolute pleasure to have this opportunity to talk with you all. As you know, I love talking about your company.

We are finishing the calendar year with a lot of momentum. Trevor has outlined our advances over the past year and I'm going to colour in some of that big picture. Nothing could better describe 2018 than your company's new purpose statement. That is, "a growing and independent company, providing oil and gas to improve lives and support the energy needs of Australia and the world". This is something all of us at Senex truly believe in.

Firstly, to growth. Let me start by addressing the Roma North development, which is part of the Western Surat Gas Project, and Project Atlas. It's been a big few weeks for both developments, with the start of construction at Roma North on Monday just two weeks after Final Investment Decision.

I'll give you three examples of what these developments collectively involve:

• • Firstly, developing and producing gas volumes in the region of 90 million barrels of oil equivalent over their lifetime. This is roughly the equivalent of supplying the entire world's oil demand for a day.

• • Secondly, construction of processing facilities with a total capacity of 56 terrajoules per day. When operating at this rate, they would provide enough energy to power 150,000 family homes each and every day - or a city about the size of Toowoomba.

• • And thirdly, creation of 150 jobs during construction, not to mention the indirect economic benefits to surrounding communities. These are long-life projects that will produce benefits for at least 30 years.

Atlas and Roma North are truly transformational for Senex and will result in a step-change in production, earnings and cash flow. And they are an example of how we are leveraging the success of our Cooper Basin operations into the Surat Basin. Without the Cooper Basin, Senex simply could not have funded these new developments.

Significantly, our gas projects represent the biggest single investment in growth in Senex's history, with between $220 million and $250 million invested over the next three years. Let's just pause for a moment to consider that number - that's up to a quarter of a billion dollars of capital. On top of this, Jemena, major infrastructure owner and operator, has committed $140 million. With this capital they will build the Project Atlas gas processing facility and a 60km pipeline, with Senex paying a toll to Jemena over the life of the project. All up, the investment in your company's growth over the next three years is close to $400 million - and all on material, low risk, long-life gas assets.

Senex Energy Ltd	Head Office	Phone [phone]
ABN 50 008 942 827	Level 31, 180 Ann St, Brisbane Qld 4000	Facsimile [phone]
ASX: SXY	GPO Box 2233, Brisbane, Qld, Australia 4001	Webwww.senexenergy.com.au