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Senex executes H1 FY17 hedging program Release Date: 9 March 2016


Senex Energy Limited (Senex, ASX: SXY) has responded quickly to the sharp increase in the Brent oil price, securing a series of put options for the first half of the 2017 financial year.

The put options provide revenue protection over 400,000 barrels of oil, without limiting Senex's exposure to the upside from higher oil prices. These put options guarantee a Brent oil floor price of US$45 per barrel (~A$62 equivalent) over the six month period, and Senex will fully participate in any rise in Brent oil prices above this level. The details of the hedging program are below.

Senex Managing Director Ian Davies said the implementation of the program provides downside risk protection and allows the Company to cover its operating and corporate cash costs as well as lock in a margin on its oil sales.

"We are committed to remaining agile in this volatile environment and have taken decisive steps to ensure the Company remains cash-flow positive before capital expenditure in H1 FY17.

"Coupled with our recent success in reducing our cost base in support of profit margins at lower prices, our ability to lock these hedges away quickly demonstrates the Company's resilience in a low oil price environment," he said.


Details of hedging program:

Type of option

Put options over ICE Brent

Strike price

US$45/bbl

Volume

400,000 bbls

Tenor

H1 FY17 (1 July 2016 - 31 December 2016)

Premium

US$2.4 million

Upside to oil price preserved

Yes



FURTHER INFORMATION


Investor Enquiries: Ian Davies Managing Director

Senex Energy Limited Phone: (07) 3335 9000


Tess Palmer

Investor Relations Manager Senex Energy Limited Phone: (07) 3335 9719

Media Enquiries: Karen Cottier

Corporate Communications Manager

Senex Energy Limited Phone: (07) 3335 9859


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 over one million barrels of oil annually, and is successfully developing a gas business including the Western Surat Gas Project in Queensland.



Senex Energy Limited ABN 50 008 942 827 ASX : SXY


Head Office

Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane, Qld, Australia 4001


Phone +61 7 3335 9000

Facsimile +61 7 3335 9999

Web www.senexenergy.com.au


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Senex Energy Limited issued this content on 14 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 March 2016 21:58:18 UTC

Original Document: http://www.senexenergy.com.au/investor-centre/files/senex-executes-h1-fy17-hedging-program/