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late-life non-western flank oil fields in the
Cooper Basin, with a lack of oil transportation
infrastructure and materially lower near-term oil
price assumptions disproportionately affecting
these fields’ carrying values, notwithstanding
their cashflow positive operations. The balance
of the expected non-cash impairment charge
largely relates to capitalised Cooper Basin
exploration and obsolete oil field inventory.
In addition, following a comprehensive
organisational review as a result of the
COVID-19 pandemic and the changed
economic outlook, Senex expects to book a
restructuring cost provision of approximately
$2.6 million in its FY20 full year results.
The restructure is expected to be completed
during Q1 FY21 and deliver material and
ongoing cost savings and efficiencies across
the business.
Lytton refinery to restart proceedings arising from the termination of SENEX, August 12, 2020
the PSC by the ANPM in 2015 and settle all
during September claims and counterclaims between the parties. State Gas updates on Reid’s
The execution of the Deed sees an amicable
Ampol advises that it intends to restart its conclusion to the arbitration proceedings, as Dome project
Lytton refinery at the conclusion of its extended announced in October 2018, where Oilex and its
outage period. Ampol has made this decision joint venture partners in the PSC were subject to State Gas refers to its recent announcements1
based on its assessment that refining will deliver a penalty claim of US$17 million (plus interest) in relation to its operations at the Reid’s Dome
better integrated supply chain and earnings on a joint and several basis. Oilex is the Operator Gas Project (PL 231) and provides this update
alternatives than its product imports. of the PSC on behalf of the joint venture. of the production testing of the Nyanda-4 and
As previously advised, this extended Under the terms of the Deed, Oilex has Serocold-1 coal seam gas wells and volumetric
outage has been taken to conduct the planned committed to a settlement of US$800,000 estimation of the Reid’s Dome Gas field.
Turnaround and Inspection (T&I) maintenance payable in the 2021 and 2022 financial years. The In the south of PL 231, Nyanda-4 is currently
activities and to manage the operational and settlement was fully provided in the Company’s flowing gas at rates exceeding 60 mscf/day, less
financial impacts of COVID-19 on the refinery’s annual financial statements to 30 June 2019. than four weeks after initiating pumping. Water
operations. In addition, the Company has entered into an production is again very low, which augurs well
The maintenance activities are due to be unsecured loan facility agreement with two of its for development economics. The Company is
completed as planned at the end of August, with joint venture partners which further provides the preparing for production logging to determine
the phased restart of the refinery units expected Company with the option, at its sole discretion, the contribution of the various coal intervals in
throughout September. Ampol expects the to extend the settlement payments into the 2023- the well, once the gas flow rates have stabilised
refinery to be able to produce at full production 24 financial year. Please see below for further at a satisfactory level. This data will inform
by the beginning of October and will continue detail on the facility. assessments of the Reserves and Resources in the
to evaluate make versus buy decisions based on OILEX, August 7, 2020 permit to be undertaken by Netherland Sewell &
prevailing market conditions. Associates. It will also assist future well drilling
Ampol believes that market conditions for Senex writes down Cooper and completions as the field moves to early
refining continue to be highly uncertain and development.
Ampol will continue to review its refining Basin oil assets Located 6.2km north of Nyanda-4 within
operations and provide routine updates of PL 231, Serocold-1 achieved constant gas flow
its refining performance once operations Senex Energy today announced it expects to within one week of being placed on pump, a
recommence. recognise a non-cash impairment charge of remarkably early production of gas from the
AMPOL, August 11, 2020 approximately $52 million1 in its FY20 full accessible coal seams. This well will be produced
year results to be released on 24 August 2020. to determine the potential from the upper 54%
Oilex terminates JPDA respect of Senex’s Cooper Basin oil assets and of the coals in this well. The remaining coal
The non-cash impairment charge is in
seams are situated below the level of the pump
arbitration proceedings is due to a material downward revision in oil due to obstructions in the well. Those remaining
price assumptions resulting from the effects of
46% of seams below the level of the pump are
Oilex Ltd, in its capacity as Operator, on the COVID-19 pandemic on energy market therefore unlikely to provide any benefit to gas
behalf of the Joint Venture Participants in fundamentals. Senex has reduced its long-term flow rates during the current testing as the water
Joint Petroleum Development Area (JPDA) Brent oil price assumption to US$62.50/bbl is drawn down to only the level of the pump
06-103 Production Sharing Contract in East from FY25 (real 1 July 2020) and is forecasting a in Serocold-1. Future well completion will be
Timor is pleased to announce it has executed slower recovery to these levels over the short to designed to avoid such issues. As with Nyanda-4,
a Deed of Settlement and Release with the medium-term (see table below). water production is very low providing further
Autoridade Nacional Do Petroleo E Minerais Approximately two thirds of the expected positive signs for economics.
(ANPM) to terminate the ongoing arbitration non-cash impairment charge relate to small, STATE GAS, August 12, 2020

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