Senex to Divest Stakes in AU Cooper Basin

Senex announced the farm-out of southern Cooper Basin conventional oil exploration licenses to Ambassador Exploration Pty Limited (Ambassador).

Senex is farming out a 60% interest in PEL 516 Mudlalee Block, a 60 %interest in PEL 516 Rowley Block and a 50% interest in PEL 113 Zulu Block to Ambassador. Notwithstanding the farm-outs, Senex retains 100% of the rights to "unconventional hydrocarbon production" within the Zulu Block and to any petroleum recovered from the Mudlalee and Rowley Blocks from beneath the Poolowanna horizon. Senex will retain Operatorship of each of these licenses.

The Farm-out Agreements have been executed and are subject to specific Conditions Precedent which are in the process of being completed. Details of the farm-out terms follow:

South Australian Cooper Basin License PEL 113 Zulu Block

Ambassador to pay 100% of the drilling cost of one well within the license area and 100% of the cost of acquiring, processing and interpreting 100 square kilometers of 3D seismic over the license area subject to agreed cost limits. On completion of the program, Senex will retain a 50% interest and Ambassador will have earned a 50% interest in Zulu Block production other than unconventional hydrocarbon production from the shale and coal deposits in the Permian sequence. Senex retains the rights to 100% of any unconventional hydrocarbon production from the Permian sequence.

South Australian Cooper Basin License PEL 516 Mudlalee Block

Ambassador to pay 100% of the drilling cost of one well within the license area subject to an agreed cost limit. On completion of the program, Senex will retain a 40% interest and Ambassador will have earned a 60% interest in the Mudlalee Block other than production from deposits that extend beneath the Poolowanna horizon. Senex retains the rights to 100% of any petroleum recovered from deposits beneath the Poolowanna horizon, being the unconventional hydrocarbon zones.

South Australian Cooper Basin License PEL 516 Rowley Block

Ambassador to pay 100% of the drilling cost of one well within the license area subject to an agreed cost limit. On completion of the program, Senex will retain a 40% interest and Ambassador will have earned a 60% interest in the Rowley Block other than production from deposits that extend beneath the Poolowanna horizon. Senex retains the rights to 100% of any petroleum recovered from beneath the Poolowanna horizon, being the unconventional hydrocarbon zones.

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