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Sundance Energy to boost oil, gas production in Australia

Sundance Energy to boost oil, gas production in Australia

CANBERRA: Sundance Energy Australia (ASX:SEA) has completed the acquisition of New Standard Energy’s (ASX:NSE) U.S. and Cooper Basin assets, which include producing oil and gas wells.

Consideration includes $15 million, the issue of 6 million SEA shares and the assumption of a net working capital deficit of about $0.9 million.

The Eagle Ford assets acquired include approximately 5,500 net acres in Atascosa County, Texas, that host seven gross producing wells with approximately 175 barrels of oil equivalent per day of current production and two wells that have been drilled but not yet completed.

This acquisition increases Sundance’s Eagle Ford position to approximately 37,000 net acres.

Sundance plans to sell 25% of the assets acquired from New Standard Energy plus approximately 400 net acres (25%) of Sundance’s Charlotte Ranch lease in Atascosa County, Texas to Quintanilla Management Company. This is expected to close within the next several weeks.

Sundance produced 8,556 barrels of oil equivalent per day during the first half of 2015. The company had $3.5 million in cash as at 30th June 2015.