Sundance Acquiring More Eagle Ford Assets
Australia’s Sundance Energy is gobbling up more of the Eagle Ford as a major focus of its growth strategy.
Related: Japanese Company Buys Eagle Ford Assets
Sundance Energy Australia Limited announced today that it has entered into an agreement to acquire approximately 5,050 net acres targeting the Eagle Ford in McMullen County, Texas.
The $16.0 million deal is the third venture for Sundance in the Eagle Ford. The company also operates Choke Canyon Reservoir located in McMullen, Live Oak and Atascosa Counties and the Redemption Project located in Dimmit County. Before the announcement of this purchase, Sundance reported on their website that they held ~40,000 net acres in the Eagle Ford.
“This prolonged period of depressed commodity prices has tested the resilience of the oil and gas industry. However, the Board and Management of Sundance Energy has not wavered from their overall strategy of building a sustainable growth business and delivering superior shareholder returns in the medium to longer term. A major focus of this strategy is to expand and develop our valuable portfolio of Eagle Ford assets.”
The acquisition should be complete by late July and includes the following:
- 27 gross (9.6 net) wells
- Total proved reserves of approximately 3.0 mmboe, 1.4 mmboe of which are attributed to producing wells
- Expected 2016 fourth quarter production of 8,600 – 9,500 boepd
On Tuesday, Tokyo Gas Co. announced that they have closed on their acquisition of ~25% interest in Eagle Ford shale gas assets from the VirTex group. The 34,000 acre assets are located in the Webb and La Salle counties of south Texas.