• Senex plans to expand Atlas production (including PL 209 and PL 445) to a 30 PJ/year plateau in CY24 (currently expanding to 18 PJ/year), comprising half of the end-FY25 production target of 60 PJe/year1
• PL 209 and PL 445 include a 77 km² development-ready Northern Area, comparable in reservoir quality to the adjacent Atlas field, and a 77 km² Southern Area requiring future appraisal
• Estimated Ultimate Recoverable (EUR) volume of 184 PJ in Northern Area2 , with additional ~600 PJ estimated gas-in-place in Southern Area requiring future appraisal
• No existing gas supply obligations or domestic marketing commitments providing portfolio flexibility
• Initial acquisition cost of $50 million, with a further $30 million payment upon receipt of satisfactory Commonwealth environmental approvals, funded from an acquisition bridge facility and existing cash and debt facilities

Senex Energy has received a further improved non-binding proposal from POSCO International Corporation (“POSCO International”) to acquire 100% of Senex for a cash offer price of A$4.60 (1) per share.

In addition, Senex's current intention is to pay a dividend of up to A$0.05 per share for the half year ending 31 December 2021 in the ordinary course, subject to review by the Board at that time.

The Revised Proposal of A$4.601 per share follows the submission of three prior non-binding proposals on 30 July 2021 (offer price: A$4.00 per share), 27 August 2021 (offer price: A$4.20 per share) and 2 September 2021 (offer price: A$4.40 per share), as announced to the market on 18 October 2021.

Subject to negotiating an acceptable Scheme Implementation Agreement, no superior proposal and an independent expert concluding that the transaction is fair and reasonable and therefore in the best interests of shareholders, the Senex Board intends to unanimously recommend that shareholders vote in favour of the proposed transaction.

Senex has agreed to extend POSCO International’s exclusivity period(2) to 26 November 2021, to provide time to negotiate and enter into a binding Scheme Implementation Agreement and for POSCO International to obtain its internal approvals. POSCO International has confirmed to Senex that it has now completed all of its due diligence enquiries. 

(1) The offer price will be reduced by any dividends declared or paid, other than a dividend of up to A$0.05 per share for the period ending 31 December 2021.
(2) The exclusivity terms include a ‘no shop’ provision, a ‘no talk’ provision (subject to a fiduciary out), a ‘no due diligence’ provision (subject to a fiduciary out), a ‘notification’ obligation (subject to a fiduciary out for the identification of the counter bidder) and a matching right applying during the exclusivity period, each on customary terms.

KeyFacts Energy: Senex Australia country profile