Posco International nearing completion of Senex acquisition

South Korean company Posco International and its Australian JV partner Hancock Energy Corp. have received necessary Australian approvals for the $885 million (Aus.) cash takeover of Senex Energy Ltd., Brisbane (OGJ Online, Dec. 13, 2021). 

Senex shareholders have voted overwhelmingly in favor of the deal and the Australian Federal Court has approved the plan in which Posco will pay $4.60 cash/share (Aus.) to acquire Senex.

Senex shareholders received a dividend of $0.05/share (Aus.) for half year ended Dec. 31, 2021.

The share acquisition entity will be K-A Energy 1, a company owned by Posco and Hancock Energy with 51% and 49% interest respectively.

Senex said Mar. 18 that the scheme of arrangement is legally effective. Senex shares have been suspended from trading on the Australian Stock Exchange.

The scheme, which marks Posco’s entry into Australia’s upstream petroleum industry, is scheduled to be implemented Apr. 1.

Senex has 767 petajoules of proven and probable gas reserves and 1,016 petajoules of 3P reserves within its Surat basin permits in southeast Queensland. Gas production is through the Atlas, Roma North, and Louisiana projects with total annual production of around 19 bcf.

Posco and Hancock plan to harness the gas fields to enter the carbon capture storage (CCS) industry as well as blue and green hydrogen production.