Sundance Energy Gains McMullen County Assets

Company Continues its Eagle Ford Growth Initiative
Sundance Energy Gains McMullen County Assets

Sundance Energy Gains McMullen County Assets

Sundance Energy continues its expansion into the Eagle Ford with the purchase of more assets in McMullen County.

Related: Sundance Closes on McMullen County Property

Australia-based Sundance Energy is pressing hard into the Eagle Ford, announcing its latest acquisition just days before Christmas. The $7.1 million deal gained working interests in 23 gross (1.5 net) producing wells and 1,449 gross (130 net) acres in McMullen County. The wells averaged approximately 300 boepd at time of sale and Sundance operates 12 of the acquired wells.

In July Sundance Energy closed on another deal, gaining 5050 Acres in McMullen County.  The $15.5 million transaction included 27 gross (9.6 net) wells with expected production of 600 barrels of oil equivalent per day (boe/d) to 700 boe/d for the remainder of 2016

“In a separate transaction, the Company divested an acreage block containing 3,336 gross (2,709 net) acres located in Atascosa County, Texas. The Eagle Ford acreage was undeveloped and outside the Company’s core development project area. Sundance received cash proceeds of $7.1 million for the acreage.”

Sundance Highlights:

  • The company operates on 46,000 net acres in McMullen, Live Oak, Atascosa and Dimmit Counties
  • 430 gross (353 net) total undrilled locations
  • Q3 2016 total cash costs(1) of $16.64/boe compared to Q2 2016 of $19.69/boe
  • Q3 2016 total cash operating costs of $11.40/boe compared to Q2 2016 of $12.32/boe
  • Q4 2016 estimated production of 9,300 – 9,900 boepd
  • Current McMullen Eagle Ford well cost of ~$5.7 million(2) for wells with avg lateral length of 7,100’

Read more at sundanceenergy.com

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Elizabeth Alford

Elizabeth Alford

Elizabeth Alford writes on significant news developments in the Eagle Ford oil and gas play taking place across South TX. She is a freelance writer with an extensive communications, PR, and staff writing background.
Elizabeth Alford

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