Australian Energy company Senex Energy has secured a floor cost for its oil revenues bid to protect them against the recent drop in prices.
The move was carried out through a combination of put options and zero cost collars.
The firm believes these facilities will guarantee an average Brent crude floor price of $68 per barrel for 720,000 barrels of oil sales in the six month period.
The collars establish a ceiling Brent crude price of A$84 for 460,000 barrels of oil sales in that period, with sales in the three months to the end of March 2015 constituting over 70% of the volume subject to the ceiling price.
Ian Davies, managing director, said: “The company remained in a position of financial strength.
“The implementation of this cost effective package of downside risk management measures was prudent in the short-term given current oil price volatility.”
Senex is in the process of reviewing its spend for the remainder of FY15, and has already enacted measures to reduce discretionary expenditure and to high-grade future capital investments.