DENVER, Jul. 31, 2017 (Korea Bizwire) — Sundance Energy Australia Limited (ASX:SEA) (NASDAQ:SNDE) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford in South Texas, reported its second quarter 2017 operating results.
Sundance produced approximately 6,600 boe/d during the quarter and has averaged 6,700 boe/d during 2017, ahead of its expectations for the quarter due to better than expected well results on its 2017 drilling program and improved productivity from legacy wells. In July 2017, Sundance brought six wells online in McMullen County which has brought total Company production in late July to over 10,500 net boe/d. While the Company does not expect to maintain these production levels consistently for the remainder of the year due to normal declines and planned shut-ins for future completions, it is an important milestone for the Company’s total production base.
Subsequent to quarter end the Company entered into a US$30,000,000 revenue advance facility with Vitol, Inc., part of The Vitol Group which is one of the largest independent energy trading groups in the world. Oil is priced at market plus or minus any gain or loss on hedging. The revenue advance is repaid through the delivery of oil production at the rate of $20 per gross barrel in Q4 2017 and $25 per gross barrel in Q1 of 2018. The facility may be extended by mutual agreement of the parties.
During the quarter the Company completed its 13 well 2017 drilling program. The Company completed 6 wells during the quarter and had 3 completions in progress at the end of the quarter. Three wells began production during the quarter and six wells, the three well Teal-Hoskins pad and the three well Libersat pad with total completed lateral length of 48,279’, began production in July 2017.
As of the date of this report, the Company has four drilled but uncompleted wells awaiting completion in McMullen and Atascosa County that are scheduled for completion in early Q4 2017 and will complete the Company’s 14 well 2017 completion program.
|Well Name||County||SEA Working Interest||SEA Net Revenue Interest||Completed Lateral Length||% Oil**||Peak 24-Hour (boe/d)||30-Day (boe/d)||60-Day (boe/d)||90-Day (boe/d)|
|Peeler EFS 11HD||Atascosa||100||%||75||%||9050′||92||%||1,059||764||760||734|
|Woodward EFS 4HB||McMullen||100||%||85||%*||7630′||55||%||1,348||954||1,092||n/a|
|Red Ranch EFS 32HC||Dimmit||100||%||75||%||7340′||75||%||1,131||822||902||n/a|
|Shook EFS 11HU||Dimmit||100||%||70||%||7400′||74||%||742||610||545||n/a|
|Teal Hoskins A EFS 2HU||McMullen||100||%||75||%||8842′||90||%||1,607||n/a||n/a||n/a|
|Teal Hoskins EFS 1H||McMullen||100||%||75||%||9245′||91||%||1,864||n/a||n/a||n/a|
|Teal Hoskins B EFS 4H||McMullen||100||%||75||%||9366′||91||%||1,505||n/a||n/a||n/a|
|*85% until payout and then 80%|
|**Based on the longest IP period|
Grace Ford, COO, commented “our team has made good strides in understanding our Dimmit County asset as shown by the results of our two recent completions which produced oil almost 30 days sooner and achieved 30-day IP rates 350% higher than previous wells. In our McMullen area, we recently saw 24-hour results from our Teal-Hoskins pad average almost 1,400 barrels of oil and 1.1 million cubic feet of wet gas, matching some of our best wells to date. Importantly, initial results from the Teal-Hoskins 2HU, drilled in the upper-lower Eagle Ford, are outperforming our type curve and we will be closely monitoring its production profile over the coming months as we have 132 remaining locations targeting this zone.”
Eric McCrady, CEO, commented “our operations team’s focus on improving well performance has resulted in some of our best wells to date across our acreage position. The strong initial production results from the Teal-Hoskins and Liberstat pad, which began producing in early and late July respectively, have taken net production over 10,500 boe/d which is an important milestone for the Company. With four more wells drilled but not completed, our development program is on track with our expectations in 2017. Finalization of the Vitol agreement provides more than adequate liquidity to execute this year’s business plan and establishes a relationship with one of the leading international energy traders on favorable terms.”
Sundance plans to report second quarter 2017 financial results in connection with its half-yearly 2017 results in mid-September. A separate announcement will provide additional details on the release date and a conference call to review the results.
About Sundance Energy Australia Limited
Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA.
The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net
The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov.
Forward Looking Statements
This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.
These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Eric McCrady, Managing Director
Tel: +1 (303) 543 5703
Mike Hannell, Chairman
Tel: +61 8 8363 0388
Source: Sundance Energy Australia Limited via GLOBE NEWSWIRE