Sundance Energy Provides January 2019 Operational Update
DENVER, Jan. 31, 2019 (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 is pleased to announce that it exceeded its production guidance for full year 2018 and met its production guidance for fourth quarter 2018. The Company’s full year 2018 net production averaged approximately 10,000 Boe/d including flared volumes, at the top end of full year net production guidance of 9,000 to 10,000 Boe/d. During the fourth quarter of 2018, the Company produced approximately 14,000 Boe/d including flared volumes, meeting fourth quarter production guidance of 14,000 to 15,000 Boe/d.
The Company’s cumulative net production for the fourth quarter was approximately 1,300,000 Boe. Net production comprised approximately 900,000 barrels of oil, 150,000 barrels of natural gas liquids and 1,700,000 thousand cubic feet of natural gas. Production for the period was ~68% oil by volume.
The Company’s cumulative net production for full year 2018 was approximately 3,700,000 Boe. Net production comprised approximately 2,300,000 barrels of oil, 490,000 barrels of natural gas liquids and 5,700,000 thousand cubic feet of natural gas. Production for the year was ~61% oil by volume.
Due to better than expected well performance, the Company’s higher production volumes have resulted in increased line pressure and capacity constraints at a third-party gas processing facility earlier than planned. The Company expects the issue to be resolved in the first half of the year through a facility expansion. In the meantime, the Company has been appropriately managing production volumes and flaring additional gas volumes.
Development Activities
Sundance brought 11 gross (11 net) wells onto production during the fourth quarter, bringing the total number of gross wells brought online in 2018 to 23 (23 net).
During the fourth quarter, Sundance brought onto production 9 gross (9 net) wells on the acreage acquired from Pioneer in Live Oak County. Initial production results from all wells were significantly above the Company’s well performance expectations, and all wells continue to perform above type curve. Sundance additionally brought online two gross (two net) wells on its legacy acreage in McMullen County.
Additionally, during the fourth quarter the Company completed drilling (“SPUD to TD”) on two additional gross (two net) wells in Dimmit County with a subsequently released spot rig and at quarter’s end was in the process of drilling the Roy Esse 15H, 16H, 17H and 18H four well pad in Live Oak County.
As of the date of this report, the Company has finished drilling the Roy Esse pad and is in the process of drilling the Bracken 23H and 24H two well pad in McMullen County. During January the Company fracked the Red Ranch 18H and 19H two well pad in Dimmit County and has initiated flow back on the pad.
The Company delayed picking up a second rig in the fourth quarter of 2018 in response to weaker commodity prices, and has additionally elected to scale back first quarter 2019 development plans. During the first quarter 2019 the Company intends to drill 6 wells and complete four wells.
Financial Disclosures
Upon conclusion of its annual audit in March 2019, the Company will provide full fourth quarter financial results as well as audited financial statements for the 2018 fiscal year including a Statement of Operations, Consolidated Balance Sheet, and Statement of Cash Flows. The Company will also provide an Adjusted EBITDA reconciliation at that time.
Exhibit A: Fourth Quarter Initial Well Results
Well Name
County
IP Date
Completed Lat Length
30-Day IP (boepd)
30-Day / 1,000' ft
60-Day IP (boepd)
60-Day / 1,000' ft
% Oil
Idylwood 04H
Live Oak
16-Oct
6,445
1,021
158
1,079
167
83
%
Idylwood 05H
Live Oak
16-Oct
5,487
1,171
213
1,152
210
81
%
James Keith Esse 06H
Live Oak
13-Nov
5,175
1,212
234
1,222
236
74
%
James Keith Esse 07H
Live Oak
13-Nov
5,178
923
178
966
187
75
%
James Keith Esse 08H
Live Oak
13-Nov
5,180
1,119
216
1,148
222
75
%
James Keith Esse 09H
Live Oak
13-Nov
5,164
1,333
258
1,291
250
73
%
Hoskins 20H
McMullen
2-Dec
7,266
561
77
-
-
86
%
Hoskins 21H
McMullen
2-Dec
7,116
909
128
-
-
82
%
Harlan Bethune 22H
Live Oak
15-Dec
5,301
-
-
-
-
-
Harlan Bethune 23H
Live Oak
15-Dec
5,621
1,330
237
-
-
79
%
Harlan Bethune 24H
Live Oak
15-Dec
5,737
-
-
-
-
-
Exhibit B: Full Year 2018 Activities Overview
Well Name
County
Spud Date
Frac Start Date
IP Date
Lateral Length
30-Day IP (boe/d)
60-Day IP (boe/d)
90-Day IP (boe/d)
Paloma Ranch 7H
McMullen
18-Jan-18
17-May-18
2-Jun-18
7,690'
1,345
1,017
811
Peeler Ranch 8HC
Atascosa
1-Mar-18
28-May-18
26-Jun-18
5,642'
484
404
367
Peeler Ranch 9HC
Atascosa
24-Mar-18
28-May-18
26-Jun-18
5,820'
446
371
314
Allen MCM 1HA
McMullen
21-Apr-18
6-Jul-18
17-Aug-18
8,015'
1,291
1,100
942
Allen MCM 2HA
McMullen
13-May-18
6-Jul-18
17-Aug-18
8,234'
1,132
969
843
Harlan Bethune 25H
Live Oak
7-May-18
24-Jul-18
15-Aug-18
4,779'
1,102
1,091
974
Harlan Bethune 26H
Live Oak
11-May-18
22-Jul-18
15-Aug-18
4,073'
1,234
1,066
920
Harlan Bethune 27H
Live Oak
13-May-18
22-Jul-18
15-Aug-18
3,314'
1,183
901
750
Justin Tom 05H
Atascosa
17-Jun-18
12-Aug-18
3-Sep-18
6,258'
1,296
1,146
1,003
Justin Tom 06H
Atascosa
14-Jun-18
12-Aug-18
3-Sep-18
6,299'
1,042
826
834
Harlan Bethune 34H
Live Oak
25-Jun-18
3-Aug-18
19-Aug-18
3,528'
1,691
1,588
1,344
Harlan Bethune 35H
Live Oak
22-Jun-18
3-Aug-18
19-Aug-18
3,702'
1,738
1,579
1,321
James Keith Esse 06H
Live Oak
26-Jul-18
12-Oct-18
13-Nov-18
5,175'
1,212
1,222
-
James Keith Esse 07H
Live Oak
22-Jul-18
12-Oct-18
13-Nov-18
5,178'
923
966
-
James Keith Esse 08H
Live Oak
24-Jul-18
12-Oct-18
13-Nov-18
5,180'
1,119
1,148
-
James Keith Esse 09H
Live Oak
20-Jul-18
12-Oct-18
13-Nov-18
5,164'
1,333
1,291
-
Idylwood 04H
Live Oak
3-Aug-18
28-Sep-18
16-Oct-18
6,445'
1,021
1,079
-
Idylwood 05H
Live Oak
3-Aug-18
28-Sep-18
16-Oct-18
5,487'
1,171
1,152
-
Harlan Bethune 22H
Live Oak
17-Sep-18
27-Nov-18
15-Dec-18
5,301'
-
-
-
Harlan Bethune 23H
Live Oak
21-Sep-18
27-Nov-18
15-Dec-18
5,621'
1,330
-
-
Harlan Bethune 24H
Live Oak
25-Sep-18
27-Nov-18
15-Dec-18
5,737'
-
-
-
Hoskins 20H
McMullen
25-Sep-18
9-Nov-18
2-Dec-18
7,266'
561
-
-
Hoskins 21H
McMullen
27-Sep-18
9-Nov-18
2-Dec-18
7,116'
909
-
-
Roy Esse 15H
Live Oak
1-Dec-18
-
-
-
-
-
-
Roy Esse 16H
Live Oak
28-Nov-18
-
-
-
-
-
-
Roy Esse 17H
Live Oak
26-Nov-18
-
-
-
-
-
-
Roy Esse 18H
Live Oak
24-Nov-18
-
-
-
-
-
-
Red Ranch 18H
Dimmit
20-Nov-18
8-Jan-19
-
-
-
-
-
Red Ranch 19H
Dimmit
19-Nov-18
8-Jan-19
-
-
-
-
-
For more information, please contact: United States: John Roberts VP Finance & Investor Relations Tel: +1 (720) 638-2400
Eric McCrady CEO and Managing Director Tel: +1 (303) 543-5703
Australia: Mike Hannell Chairman Tel: +61 8 8363 0388
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
Summary Information 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.
