Australian-based Sundance Energy’s Managing Director Eric McCrady was cited in a Bloomberg report this week saying the company plans to add 10,000 to 20,000 net acres in the Eagle Ford within 12-months.
Sundance’s most recent reported acquisition came in late May of 2014, when the company announced it would purchase 11,000 net acres in Dimmit and Maverick counties for $33-million. The deal added 115 gross (69 net) locations to the company’s Eagle Ford drilling inventory and approximately 200 boe/d in production. Sundance currently has ~19,500 net Eagle Ford acres covering 295 gross (196 net) drilling locations.
The company’s Eagle Ford expansion comes at a time when some Eagle Ford operators will likely need to divest their assets to pay down debt. In June, Freeport McMoran completed at $3.1-billion deal with Encana to sell 45,500 net acres in the play. Freeport McMoran officials said a portion of the proceeds would be used to pay down debt.
Sundance Eagle Ford Operations in Second Half of 2014
In July, Sundance officials said 26 gross (20.6 net) Eagle Ford wells were expected to begin production in the second half of the year, pushing the company’s production up to 8,000 – 9,000 boe/ d by year’s end. According to Bloomberg, McCrady confirmed the company expects to hit that target goal in September and increase output next year.
Read more at Bloomberg.com