DENVER, May 01, 2017 (GLOBE NEWSWIRE) — Sundance Energy Australia Limited (ASX:SEA) (NASDAQ:SNDE) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford in South Texas, reported its first quarter 2017 operating results.
During the quarter Sundance resolved the majority of its field related operational issues and is now focused on production optimization from its producing wells in the second quarter. Production for the quarter was approximately 6,700 boe/d, in line with its expectations for the quarter, and capital expenditures for the quarter were $25.8 million.
The Company drilled 5 wells during the quarter, including 3 wells in its McMullen area and 2 wells in Dimmit County. The Company commenced completion on 3 wells during the quarter, including 2 wells in its McMullen area and 1 well in Dimmit County. The Woodward EFS 4HB was production tested during the quarter and will begin production in the second quarter. The Peeler EFS 11HD and Shook EFS 11HU will begin production in the second quarter of 2017.
The frac crew that mobilized in mid-March is scheduled to complete 7 wells in Q2 and 5 wells in Q3. We anticipate 7 total wells will begin production in the second quarter with initial production dates weighted towards the end of the quarter, inclusive of the 3 wells that were completed during the first quarter and will begin production in the second quarter.
Recent initial production rates achieved are as follows:
| Oil Rate |
| Gas Rate |
| Choke |
|Woodward EFS 4H|
|Peeler Ranch 11 HD|
Grace Ford, COO, commented, “Our team continues to work diligently to reduce downtime and has made significant progress in improving day to day production management. Our focus continues to be on improving well performance from producing wells through artificial-lift optimization and a new chemical program. We are very excited about the performance of our new frac design which emphasizes perforation proficiency increasing near-wellbore conductivity with the reservoir.”
Eric McCrady, CEO, commented, “During the quarter, overall Company production declined by approximately 15% compared to the fourth quarter of 2016. This expected decline was driven by initial decline rates from new wells brought online in the second half of 2016 coupled with no production from new wells. In the second quarter, our decline rate slows but we are selling approximately 600 boe/d with our Oklahoma asset sale. As new wells begin producing in the late second and third quarters we anticipate production rates to build in line with our guidance of 7,700-8,500 boe/d for the full year. We are finalizing due diligence on the Oklahoma asset sale towards a scheduled closing in the second quarter of 2017.”
Sundance plans to report first quarter 2017 financial results on Tuesday, May 16, 2017, before market open and will host a conference call to review the results that same day. A separate announcement will provide additional details regarding the conference call.
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. 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 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.
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