Sundance Seeks More Eagle Ford Acreage – Sept. 2014

Bloomberg: Company Plans to Add 10,000 - 20,000 Net Acres Within 12-Months
Sundance Energy's Eagle Ford Acreage

Sundance Energy’s Eagle Ford Acreage

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.

Read more: Sundance Energy Acquires 11,000 Net Eagle Ford Acres for $33-Million

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.

Read more: Encana Purchases Eagle Ford Assets from Freeport-McMoran – $3.1 Billion

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

Sundance Energy Acquires 11,000 Net Eagle Ford Acres for $33-Million

Deal Includes 11,000 Net Acres in Dimmit and Maverick Counties
Sundance Energy's Eagle Ford Acreage

Sundance Energy’s Eagle Ford Acreage

In late May of 2014, Australian-based Sundance Energy announced the acquisition of 11,000 net acres in Dimmit and Maverick counties for $33-million and a four gross Eagle Ford well drilling commitment to the seller. The deal adds 115 gross (69 net) locations to the company’s Eagle Ford drilling inventory and approximately 200 boe/d in  production. Sundance now has approximately 19,500 net Eagle Ford acres covering 295 gross (196 net) drilling locations.

This acquisition is the company’s second strategic move to add Eagle Ford acreage to its portfolio in just over a month’s time. In late April 2014, the company announced the completion of a lease acquisition and development agreement for Eagle Ford acreage in McMullen County. That deal added 4,800 net acres and 50 gross locations to the Sundance’s Eagle Ford drilling inventory.

Read moreSundance Energy Completes Ealge Ford Lease Acquisition and Development Agreement

Sundance Building a Core Eagle Ford Operating Area

In late May of 2014, Sundance also announced the sale of its acreage in the DJ Basin in Colorado for $116-million. The company is shifting its assets to build a core operating area in the Eagle Ford, and a portion of the funds from this sale will be re-allocated to the play.

Sundance’s Managing Dir., Eric McCrady said, “this sale of a non-core project allows the company to not only crystalise an attractive return on its DJ Basin investment, but provides a significant opportunity to reinvest capital into accelerating growth in our core projects in the Eagle Ford and Mississippian/Woodford.”

Sundance’s most recent acquisition in Dimmit County is for a 60% working interest, and a 30% working interest in the Maverick County acreage. Dimmit County wells are prospective for the Eagle Ford formation, while the Maverick County wells are targeting the Georgetown formation.

“We are very excited to add a second core Eagle Ford area to our development inventory. Dimmit County has seen significant activity and strong results from some of the leading Eagle Ford operators such as Anadarko,” added McCrady.

In the purchase and sale agreement, Sundance secured an option to buy the remaining 40% interest in the Dimmit County acreage, and an additional 20% interest in the Maverick County acreage. Sundance did not disclose any information about the seller. Closing is expected in late June or early July of 2014.

Read more at sundanceenergy.com.au

Sundance Energy Completes Eagle Ford Lease Acquisition and Development Agreement

Deal Includes 4800 Net Acres and 50 Gross Drilling Locations
Sundance's Eagle Ford Acreage Position

Sundance’s Eagle Ford Acreage Position | Click to Enlarge

Australian-based Sundance Energy completed its’ lease acquisition and development agreement for Eagle Ford acreage in McMullen County in early April 2014.

The deal includes a $10-million up-front payment and two separate earn-out payments of $7.7 million, which are due upon commencement of drilling and payout of the first six wells.

[Read more…]

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