FY18 guidance on a non-recurring gain and impairmentRelease...

FY18 guidance on a non-recurring gain and impairment
Release Date: 15 August 2018
Senex Energy Limited (Senex, ASX: SXY) expects to recognise the following items in its 2018 full
year accounts to be released on 21 August 2018.
During the second half of FY18 Senex made significant progress to simplify the business in line with its
capital allocation priorities:
1. Successful development of its suite of high quality east coast gas projects, including the Western Surat
Gas Project and Project Atlas;
2. Disciplined exploration, appraisal and development of Cooper Basin western flank oil assets; and
3. Other opportunities that complement Senex’s strategic priorities and do not compromise the above.
In line with this initiative, the Company announced the termination of the Senex-Beach unconventional gas
joint venture with consideration of up to $43 million transferred as a free-carry commitment to the mutually
owned Senex-operated Cooper Basin western flank oil assets. This transaction was completed in the
second half of FY18, resulting in the recognition of a non-recurring gain.
Progress has also been made to rationalise non-core Cooper Basin assets, with certain acreage divested,
farmed-down and relinquished since the beginning of 2018. The remaining non-core exploration acreage in
the portfolio has been impaired to nil value in line with the accounting treatment for the evaluation of
mineral resources1 given Senex has no current plans for substantive expenditure on these assets.
In summary, Senex expects to recognise the following items in FY18:
• Gain of approximately $17 million in the second half of FY18 on the completion of the Beach
Energy transaction, representing the difference between Senex’s firm 60% share of the consideration
and the carrying value of the Senex-Beach unconventional gas permits.
• Additional non-cash impairment charges for the second half of FY18 of approximately
$33 million, bringing the full year total impairment to $113 million, on certain non-core Cooper Basin
exploration assets.
This non-recurring gain and impairment are subject to finalisation of Senex’s full year accounts, which are
expected to be released to the ASX on Tuesday 21 August 2018.
FURTHER INFORMATION