afr street talk

Street Talk
Senex Energy on marketing drive
PUBLISHED: 0 hour 52 MINUTE AGO | UPDATE: 0 hour 52 MINUTE AGO

Edited by Sarah Thompson and Anthony Macdonald

Senex Energy management has been marketing the company to potential investors this week, seeking to capitalise on interest in unconventional gas.

In meetings with fund managers, Senex’s pitch included that it has a lot of land in the Cooper Basin at a time when the world’s oil and gas majors are looking at getting their hands on unconventional gas exposure.

Investors left with the impression that Senex could be seeking a farm-in partner, similar to Drillsearch Energy. Drillsearch has entered a shale gas joint venture in the Cooper Basin with BG Group.

Senex’s marketing also comes as former Merrill Lynch energy don Mario Traviati has been in the market talking up the possibility of a corporate play for Beach Energy .

Beach recently announced significant new unconventional gas discoveries in the Cooper basin.

Traviati, who consults to Melbourne stockbroker Evans & Partners, touted Beach as a front-runner in Australian shale gas commercialisation.

Senex shares have disappointed investors since it announced a $77 million equity raising in June. The company raised the equity at 74¢ a share, but have since closed as low as 60¢.