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.
Sundance's Ealge Ford Acreage Acquisition
The acquisition adds 4,800 net acres and 50 gross locations to the Sundance's Eagle Ford drilling inventory. The company's existing acreage position in McMullen County, combined with this acquisition, increase Sundance's McMullen County project area in the Eagle Ford to 13,000 net acres and ~160 gross drilling locations. Company officials say the contiguous acreage block, extended by this acquisition, will allow for long reach laterals that enhance recovery and drilling efficiency resulting in improved economics. As of February 2014, Sundance was operating a two-rig horizontal drilling program to develop its McMullen County project.
Sundance Sale of Williston Basin Phoenix Prospect
In the last quarter of 2013, Sundance racked up $35.5 million from Natural Resource Partners for non-operated working interests in the Williston Basin Phoenix Prospect.
Read more: NRP-Sundance Reach $35.5 Million Bakken Deal
The sale is in-line with the company's strategy to divest non-operated assets, and re-invest capital in operated development activity in the Eagle Ford and other U.S. shale plays. Currently the company has 3,640 net acres in it's Phoenix and Goliath Prospects in the Williston Basin, which it considers non-core, and plans on divesting.
Read more at sundanceenergy.com.au