EIG supports Australia’s Senex
EIG Global Energy Partners has invested in Senex Energy and will partner with the Australian oil and gas producer on several of its projects.
According to a release, Senex will issue about 173 million new shares to EIG and other unnamed institutional investors for A$0.315 each, raising A$55 million ($42 million) in all. EIG will take 146 million shares in two tranches: 96 million at first, followed by another 50 million shares conditional on regulatory approval. The new shares represent a 15% stake in Senex, with EIG taking a 12.6% stake.
Senex will use the new funds to support its Western Surat gas project in Queensland, to develop new oil and gas resources on the company’s current land holdings, and to seek new gas markets on Australia’s east coast. EIG plans to commit up to $300 million in loans to the Western Surat development, and will work with the company to develop funding plans for its other projects, in which EIG will also invest.
“EIG has been an early investor in coal seam gas in Queensland since the late 1990s, and we believe now is the opportune time to develop these assets as fundamentals are supportive. Senex has the right people to develop the project and in long-term partnership with EIG we believe the Company will build a tier-one asset,” said Blair Thomas, CEO at EIG.
Senex was founded in 1984 as Victoria Petroleum, changing its name in 2011 at the time of its merger with Stuart Petroleum. The company is focused on bringing the Western Surat project online, hoping to offset lost revenue from its declining Cooper Basin fields.
According to its most recent annual report, Senex recorded revenue of A$69 million for the year ended June 2016, down from A$116 million the previous year. Over the same period the company’s net loss dropped from A$81 million to A$33 million.
EIG invests in energy and energy-related infrastructure projects on a global basis and had $14.3 billion of assets under management as of September 2016. The GP closed its latest global energy fund at the $6 billion hard cap in 2013.
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