Senex Energy : Monthly Drilling Report - March 2017

Senex progressed its FY17 Cooper Basin drilling campaign during March, spudding the Silver Star-1 gas exploration well and completing testing and appraisal activities for the Hoplite-1 oil exploration well.

Silver Star-1 is a high impact gas exploration well located in the northern Cooper Basin targeting basin centred gas in the Patchawarra Trough. The well spudded on 17 March and had reached a depth of 2,800 metres in early April, with a total depth of 3,780 metres expected by mid-April. A potential lateral section of up to 1,500 metres may be drilled following assessment of the vertical drilling results.

The well is the first drilling location in the northern area of Senex's joint venture with Origin Energy, a staged program targeting material volumes of basin centred and stratigraphic gas in the Patchawarra and Allunga Troughs. Senex is free carried by Origin under the Senex-Origin farm-in arrangement.

The Hoplite-1 oil exploration well was designed to target the Namur Sandstone with the Birkhead Formation as a secondary target. After reaching total depth of 2,200 metres in February, the well encountered gross pay of 17 metres in the Birkhead Formation and elevated gas readings across the same interval. Free oil was recovered during the drill stem test across this interval in March, however the flow rate was not considered commercial.

Following the result of Hoplite-1, a side track well was drilled to further test and appraise the Birkhead Formation. The well encountered hydrocarbon shows but non-commercial reservoir qualities, and both Hoplite-1 and the side track well were subsequently plugged and abandoned.

The results of Hoplite-1 and Hoplite-1 DW1 are highly encouraging for current and future Birkhead play fairway activity, with the well location approximately 25 kilometres northeast of the Senex operated Snatcher field, currently the most north-eastern field producing from the Birkhead Formation. Senex expects to drill a third exploration target in PEL 182 during the fourth quarter of FY17, following further assessment of results from the first two wells.

The map on page 3 shows the location of the above wells and drilling locations.

SXY - Senex Energy Limited (ASX:SXY) BPT - Beach Energy Limited (ASX:BPT) ORG - Origin Energy (ASX:ORG)

PGS - Planet Gas Limited (ASX:PGS)

Senex drilling activity for March 2017

FURTHER INFORMATION

ABOUT SENEX ENERGY

Senex is a growth focused exploration and production company based in Brisbane. With a 30-year operating history, Senex holds extensive onshore oil and gas acreage in the Cooper and Surat Basins. Senex operates the majority of its assets, produces around one million barrels of oil annually, and is successfully developing a gas business including the Western Surat Gas Project in Queensland.