DENVER, June 29, 2015 (GLOBE NEWSWIRE) — Sundance Energy Australia Ltd (ASX:SEA) (Sundance) is pleased to announce it has entered into a Share and Asset Sale Agreement (“SSA”) for the acquisition of New Standard Energy Ltd’s (ASX:NSE) (New Standard) U.S. and Cooper Basin assets. The SSA is subject to approval by NSE’s shareholders and other customary conditions precedent, including due diligence.
- Key assets to be acquired include:
- ~5,500 net acres in Atascosa County, Texas inclusive of 7 producing wells with ~175 boepd of net current production and 2 wells that have been drilled but not completed;
- Hedges covering approximately 23,000 barrels of oil at an average floor price of $78.00 per barrel;
- A 17.5% working interest in PEL570 in the Cooper Basin, and
- 122 million shares of Elixir Petroleum Ltd (ASX:EXR)
- Consideration for the acquisition includes:
- Repayment of NSE’s note with Credit Suisse upon closing of the transaction at face value of US$14.6 million with no prepayment penalties. The acquisition is conditional upon Credit Suisse assigning its 2.5% overriding royalty on NSE’s Eagle Ford assets to Sundance upon payoff of the note;
- Issuance to NSE of 6 million new fully paid ordinary SEA shares;
- Assumption of a net working capital deficit of ~US$0.9 million;
- Payment of ~A$250,000 upon signing of the SSA in relation to the acquisition of the 122 million EXR shares.
- Upon closing of the SSA, Sundance expects to sell 25% of the assets acquired from New Standard, and ~400 net acres (25%) of Sundance’s Charlotte Ranch lease in Atascosa County, Texas to Quintanilla Management Company (“QMC”).
Following completion of the acquisition, and net of the sale to QMC, Sundance will have the following key characteristics:
- ~37,000 net acres in the Eagle Ford;
- Pro forma Q1 2015 production of ~9,800 boepd;
- Pro forma proved reserves of ~29.6 mmboe, 2P reserves of 59.0 mmboe, and 3P reserves of 164.2 mmboe. SEA’s reserves are as of December, 31 2014 based on $91.48 per barrel WTI pricing and NSE’s reserves are as of September 30, 2014 based on $87.00 per barrel WTI pricing. Both SEA’s and NSE’s reserves were evaluated by Netherland Sewell and Associates; and
- A 17.5% working interest in PEL570 in the highly prospective Patchawarra Trough in the Cooper Basin.
About Sundance Energy Australia Limited
Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA. The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford and Greater Anadarko Basins. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net.
The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov.
Forward Looking Statements
This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.
These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with our the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: For more information, please contact: United States Eric McCrady, Managing Director Tel: +1 (303) 543 5703 Australia Mike Hannell, Chairman Tel: +61 8 8363 0388