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.
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.
undance'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.
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