UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934
October 31, 2014
Commission File Number 000-55246
Sundance Energy Australia Limited
(Translation of registrants name into English)
633 17th Street, Suite 1950
Denver, CO 80202
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Sundance Energy Australia Limited |
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Date: November 5, 2014 |
By: |
/s/ Cathy L. Anderson |
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Name: |
Cathy L. Anderson |
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Title: |
Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
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Number |
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Description |
99.1 |
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Announcement, dated October 31, 2014, to Australian Securities Exchange: |
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Operations Update |
99.2 |
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Announcement, dated October 31, 2014, to Australian Securities Exchange: |
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Quarterly Activities and Cash Flow Reports |
99.3 |
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Announcement, dated October 31, 2014, to Australian Securities Exchange: |
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Quarterly Earnings Call - Presentation |
2
Exhibit 99.1
ASX Announcement |
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31 October 2014 |
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ASX Code: SEA
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32 Beulah Road, Norwood, South Australia 5067ACN112 202 883
Telephone: +61 8 8363 0388 Facsimile: +61 8 8132 0766 www.sundanceenergy.com.au
Sundance Energy Australia Limited ABN 76 112 202 883
FOR IMMEDIATE RELEASE
General Manager
The Company Announcements Office
Australian Securities Exchange
Not for release in the United States.
Operations Update
HIGHLIGHTS
· Increased average daily production for the quarter to 7,035 boepd, net of royalties, a 1,237 boepd increase (21%) compared to the 2nd quarter of 2014. The Company re-affirms its 2014 production guidance of 6,700-7,500 boepd and exit rate of 8,000-9,000 boepd;
· Production from the Companys Eagle Ford and Mississippian/Woodford (excluding the DJ Basin and Williston Basin assets sold early in the third quarter) increased 1,878 boepd, or 39%, compared to the 2nd quarter of 2014.
EAGLE FORD
· During the quarter the Company brought 14 gross (10.5 net) wells into production and had 17 gross (13.9 net) wells that were waiting on completion or had completions in progress at quarter end;
· The Companys dedicated frac crew continued operations throughout the quarter and the Company brought in a second frac crew in September. We anticipate new initial production from 10-13 gross wells in the fourth quarter of 2014;
· The 14 gross wells brought in to production during the quarter had average 24-hour initial production rates of 1,067 boe; 13 gross new wells with 30-days of production had average 30-day IPs of 621 boepd; and 9 gross new wells with 60-days of production had average 60-day IPs of 525 boepd.
· Subsequent to quarter end, the Company finished completing its first 4 gross (2.4 net) wells on the recently acquired Dimmit County Eagle Ford asset and anticipates initial production from the wells in the fourth quarter of 2014;
· Construction was completed on a gas sales line in early September 2014 and the Company has hooked up all of its well on the southern portion of its McMullen County Eagle Ford project to gas sales. |
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1
EAGLE FORD
The Company has increased its Eagle Ford acreage position to approximately 20,000 net acres. The Company anticipates it will continue to add acreage through direct leasing in and around its core projects in the Eagle Ford.
During the quarter the Company produced 5,124 boepd, net of royalties, from its Eagle Ford assets. The Company estimates lost production from downtime of approximately 1,000 boepd during the quarter, primarily as a result of shutting in wells to accommodate simultaneous operations on existing pads.
Table 1 below details initial production rates from the Companys 2014 development program. All wells were brought in to production with 14/64 chokes for production testing and then restricted to a 10/64 choke once producing into permanent production facilities.
Table 1: 2014 Eagle Ford initial production rates
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Working |
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Lateral |
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Interest |
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Well Name |
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Length |
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(Net Wells) |
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24-Hour |
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30-Day |
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60-Day |
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90-Day |
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180-Day |
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Teal Ranch EFS 3H |
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5,915 |
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100 |
% |
863 |
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650 |
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593 |
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534 |
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Quintanilla SMEF 4H |
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5,322 |
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50 |
% |
1,019 |
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653 |
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552 |
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Quintanilla SMEF 5H |
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5,527 |
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50 |
% |
1,021 |
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674 |
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576 |
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Quintanilla SMEF 6H |
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5,480 |
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50 |
% |
1,354 |
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705 |
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631 |
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Quintanilla SMEF 7H |
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5,577 |
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50 |
% |
1,092 |
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605 |
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517 |
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Hoskins EFS 7H (1) |
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4,492 |
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100 |
% |
1,328 |
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627 |
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598 |
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Hoskins EFS 8H |
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5,250 |
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100 |
% |
929 |
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416 |
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379 |
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Hoskins EFS 9H |
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5,320 |
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100 |
% |
871 |
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480 |
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412 |
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Hoskins EFS 10H |
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5,545 |
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100 |
% |
776 |
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463 |
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467 |
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Me/You EFS 1H |
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6,190 |
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50 |
% |
739 |
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397 |
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Q-Kiel EFS 1H |
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5,281 |
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50 |
% |
970 |
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499 |
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Shannon EFS 4H |
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7,294 |
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86 |
% |
1,428 |
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895 |
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Shannon EFS 5H |
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7,339 |
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85 |
% |
1,439 |
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1,004 |
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Tyler Ranch EFS 5H |
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4,543 |
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83 |
% |
1,111 |
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Q3 Average Well |
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5,648 |
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10.5 |
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1,067 |
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621 |
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525 |
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534 |
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Shannon EFS 2H |
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6,838 |
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85 |
% |
1,481 |
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1,049 |
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998 |
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985 |
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791 |
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Shannon EFS 3H |
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7,840 |
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85 |
% |
1,663 |
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1,095 |
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1,029 |
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995 |
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832 |
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Q Ballard EFS 2H |
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5,401 |
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50 |
% |
1,086 |
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577 |
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542 |
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501 |
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429 |
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Q Ballard EFS 3H |
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5,212 |
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50 |
% |
909 |
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602 |
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576 |
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536 |
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460 |
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Q Kiel EFS 3H |
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6,729 |
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50 |
% |
740 |
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490 |
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514 |
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500 |
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Quintanilla CCR EFS 2H |
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4,406 |
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100 |
% |
686 |
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362 |
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378 |
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Wheeler EFS 2H |
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4,385 |
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100 |
% |
375 |
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233 |
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213 |
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Q1/Q2 Average Well |
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5,830 |
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3.5 |
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991 |
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630 |
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607 |
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703 |
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628 |
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2014 Development Program |
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5,709 |
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14.03 |
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1,042 |
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624 |
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561 |
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675 |
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628 |
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(1) The Hoskins EFS 7H has 54 days of production included as its 60-day IP. The rate will be updated in future releases.
2
MISSISSIPPIAN/WOODFORD
The Company has completed delineation of the Mississippian formation on its ~32,000 acre position and has identified approximately 100 gross (~80 net) operated well locations and 330 gross (60 net) non-operated well locations. Future development will be optimized through pad development and zipper fraccing which serves to reduce cost per well and improve productivity per well (Figure 1).
Figure 1: Zipper fracced well results in Logan County
The Companys focus on cost control has resulted in a 46% decrease in lease operating expense over the past 6 months (Figure 2). Key factors include:
· Six strategically placed company operated SWDs provides cost effective development of leasehold pods;
· Electric in-place at 85% of our production facilities reducing the use of generators lowering costs;
· Aggressive switch from ESPs to rod pumps reducing downtime and costs associated with generators;
· Completion changes have allowed Sundance to eliminate jet pumps again reducing costs and downtime.
3
Figure 2: Lease operating cost per boe (trailing 3 month average)
The Company has drilled and completed 6 Woodford appraisal wells in 2014 that are producing commercial quantities of hydrocarbons. Table 2 shows initial production rates from those drilled and completed in 2014.
Table 2: Woodford appraisal well production results
Well Name |
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24-Hour |
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30-Day |
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60-Day |
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90-Day |
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180-Day |
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Waldridge 17-4-4-1HW |
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459 |
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171 |
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134 |
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111 |
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74 |
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Frick 16-4-13-1HW |
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334 |
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202 |
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165 |
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140 |
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90 |
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Graff 19-3-30-1HW |
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371 |
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212 |
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162 |
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134 |
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Cimarron River 16-4-12-1HW |
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714 |
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304 |
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261 |
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222 |
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Kay Rother 16-4-14-1HW |
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123 |
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84 |
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72 |
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Davis Partners 16-3-15-1HW |
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266 |
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168 |
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Woodford Average |
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378 |
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190 |
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159 |
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152 |
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82 |
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For more information, please contact:
Eric McCrady, Managing Director Tel: +1 (303) 543 5703 |
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Mike Hannell, Chairman Tel: +61 8 8363 0388 |
4
About Sundance Energy Australia Limited
Sundance Energy Australia Limited (ASX: SEA) is an Adelaide-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, Williston, Denver-Julesburg and Anadarko Basins.
A comprehensive overview of the Company can be found on Sundances website at www.sundanceenergy.net.
Disclaimer
This announcement is for publication in Australia and not for release in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other country. Any securities described in this announcement have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act and applicable US state securities laws.
Reserves
This presentation contains information on Sundance Energys reserves and resources which has been reviewed by David Ramsden-Wood, Professional Engineer, who is licensed in Alberta Canada and is qualified in accordance with ASX Listing Rule 5.11. Mr. Ramsden-Wood, VP of Reservoir Engineering and Business Development, has consented to the inclusion of this information in the form and context in which it appears.
5
Exhibit 99.2
Sundance Energy Australia Limited
32 Beulah Road, Norwood. South Australia. 5067 ACN 112 202 883
Telephone: +61 8 8363 0388 Facsimile: +61 8 8132 0766 www.sundanceenergy.com.au
Activities Report for the Quarter Ended 30 September 2014
Highlights
Operating Results |
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· Production for the quarter increased to 7,035 Boe/d, net of royalties, an increase of 1,237 Boe/d (21 percent) compared to the immediately preceding quarter.
· Excluding the sale of DJ and Goliath, production for our Eagle Ford and Anadarko Basins increased 1,878 Boe/d (39 percent) compared to the immediately preceding quarter.
· Revenue increased to $46.5 million bringing 30 September 2014 year-to-date revenue to $115.9 million, a 110.1 percent increase compared to $55.2 million for the same nine month period in 2013.
· Adjusted EBITDAX and Adjusted EBITDAX Margin increased to $36.0 million, or 77.6 percent of revenue, respectively, for the quarter ended 30 September 2014 and $86.1 million, or 74.3 percent of revenue, for the nine months ended 30 September 2014, a 168.3 percent increase compared to $32.1 million, or 58.2 percent of revenue for the same nine month period in 2013. |
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Exploration & Development |
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· In July, Sundance completed the acquisition of approximately 5,700 net Eagle Ford acres plus an additional 5,400 net Georgetown acres in South Texas for approximately $35 million.
· In July, Sundance divested its remaining Denver-Julesburg and Bakken assets for approximately $113.4 million and $14.0 million in net proceeds, respectively.
· Sundance brought 26 gross (17.2 net) wells into production during the quarter, in addition to 18 gross (7.2 net) producing wells that were acquired in July.
· An additional 29 gross (19.1 net) Sundance-operated wells were in progress at quarter end.
· The Company anticipates 10-13 gross in progress wells in the Eagle Ford Basin to begin production in the fourth quarter of 2014.
· The Company hooked up 9 gross wells to its gas gathering system which is expected to reduce flared gas volumes. |
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Liquidity |
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· As at 30 September 2014, the Company had $50.9 million of cash on hand, with $65 million of undrawn borrowing capacity on its credit facilities. A redetermination of the Companys borrowing base is underway with its bank syndicate, which is expected to increase availability under the facility. |
All amounts shown in this report are unaudited.
1
Operating Results
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Three Months Ended |
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Nine Months Ended |
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30 September |
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30 September |
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Unaudited |
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Units |
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2014 |
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2013 |
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2014 |
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2013 |
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Production Summary, net of Royalties |
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Oil Production |
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Bbls |
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456,813 |
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264,792 |
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1,093,198 |
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522,313 |
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Natural Gas Production, excluding flare |
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Mcf |
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466,564 |
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240,916 |
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1,271,915 |
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658,553 |
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NGL Production |
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Bbls |
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77,878 |
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26,913 |
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183,743 |
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40,679 |
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Total Production, excluding flare |
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Boe |
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612,452 |
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331,858 |
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1,488,927 |
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672,749.95 |
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Average Daily Production, excluding flare |
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Boe/d |
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6,657 |
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3,607 |
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5,454 |
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2,464 |
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Flared Gas (1) |
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Boe/d |
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378 |
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407 |
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Average Daily Production, including flare |
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Boe/d |
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7,035 |
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3,607 |
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5,861 |
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2,464 |
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Sales Revenue, net of Royalties |
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Oil Sales |
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US$000s |
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42,520 |
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27,531 |
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104,240 |
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51,792 |
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Natural Gas Sales |
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US$000s |
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1,527 |
|
435 |
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5,360 |
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2,147 |
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NGL Sales |
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US$000s |
|
2,426 |
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740 |
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6,285 |
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1,224 |
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Total Sales Revenue |
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US$000s |
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46,474 |
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28,706 |
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115,886 |
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55,163 |
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Realised Product Pricing |
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Oil |
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US$/Bbl |
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93.08 |
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103.97 |
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95.35 |
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99.16 |
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Effect of Hedging |
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US$/Bbl |
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(0.15 |
) |
0.19 |
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(0.50 |
) |
(0.13 |
) |
Net Oil |
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US$/Bbl |
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92.93 |
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104.16 |
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94.86 |
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99.03 |
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Natural Gas |
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US$/Mcf |
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3.27 |
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1.80 |
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4.21 |
|
3.26 |
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Effect of Hedging |
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US$/Mcf |
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0.09 |
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(0.01 |
) |
(0.06 |
) |
0.01 |
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Net Natural Gas |
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US$/Mcf |
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3.36 |
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1.79 |
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4.16 |
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3.27 |
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NGL |
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US$/Bbl |
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31.16 |
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27.48 |
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34.21 |
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30.09 |
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NOTE: Production & Revenue figures are presented net of royalties.
(1) Prior to the fourth quarter of 2013, the Company did not report flared gas.
Revenue for the quarter increased $17.8 million, or 61.9 percent, to $46.5 million compared to the same period in prior year. Increased production of 3,050 Boe/d from the Companys successful multi-rig drilling program contributed $21.8 million and improved natural gas and NGL pricing contributed $1.0 million to the increase in revenue. Offsetting these increases in revenue was a $10.89 per barrel decrease in oil price which negatively impacted revenue by $5.0 million.
For the current quarter, the Company realised $93.08 per Bbl (10.5 percent decrease compared to the same quarter in 2013) of oil and $3.27 per Mcf (81.7 percent increase compared to the same quarter in 2013) of natural gas, net of transportation and marketing fees.
For the quarter ended 30 September 2014, the Company produced an average of 7,035 Boe/d, which includes 378 Boe/d of flared gas. Gas pipeline construction for the Companys Q-Ballard, Q-Kiel, Dusek and Lange wells in the Eagle Ford was completed in September 2014 and the Company hooked up 9 gross wells to the gas gathering system, which is expected to significantly decrease flared gas volumes.
All amounts shown in this report are unaudited.
2
Excluding flared gas, Sundance produced an average of 6,657 Boe/d during the quarter, up 84.6 percent from 3,607 Boe/d in the same period in prior year.
For the nine months ended 30 September 2014, Sundance produced an average of 5,861 Boe/d, which includes 407 Boe/d of flared gas, up 137.9 percent from 2,464 Boe/d in the same period in prior year. Excluding flared gas, Sundance produced an average of 5,454 Boe/d for the nine months ended 30 September 2014, up 121.3 percent from 2,464 Boe/d in the same period in prior year.
During the nine-months ended 30 September 2014, the Companys oil, natural gas and NGL sales revenue increased $60.7 million (110.1 percent) to $115.9 million from $55.2 million in the comparable period in the prior year. Increased production of 2,990 Boe/d contributed $62.9 million and improved natural gas and NGL pricing contributed $2.0 million to the increase in revenue. Offsetting these increases in revenue was a $3.81 per barrel decrease in oil price which negatively impacted revenue by $4.2 million.
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Three Months Ended |
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Nine Months Ended |
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30 September |
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30 September |
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Unaudited (US$000s) |
|
2014 |
|
2013 |
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2014 |
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2013 |
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Operating Activity |
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Sales Revenue, net of Royalties |
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$ |
46,474 |
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$ |
28,706 |
|
$ |
115,886 |
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$ |
55,163 |
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Lease Operating Expenses (LOE) |
|
(3,648 |
) |
(4,240 |
) |
(10,126 |
) |
(7,004 |
) |
Production Taxes |
|
(2,650 |
) |
(2,317 |
) |
(6,659 |
) |
(4,298 |
) |
General and Administrative |
|
(4,309 |
) |
(4,319 |
) |
(13,579 |
) |
(12,785 |
) |
LOE/Boe: |
|
$ |
5.96 |
|
$ |
12.78 |
|
$ |
6.80 |
|
$ |
10.41 |
|
Production taxes as a % of revenue |
|
5.7 |
% |
8.1 |
% |
5.7 |
% |
7.8 |
% |
G&A/Boe: |
|
$ |
7.04 |
|
$ |
13.02 |
|
$ |
9.12 |
|
$ |
19.00 |
|
Adjusted EBITDAX |
|
$ |
36,049 |
|
$ |
17,740 |
|
$ |
86,144 |
|
$ |
32,104 |
|
Adjusted EBITDAX Margin |
|
77.6 |
% |
61.8 |
% |
74.3 |
% |
58.2 |
% |
Lease operating expenses (LOE)
In early 2014, the Company implemented several changes in its field operations that have resulted in a reduction of $6.82, or 53.4 percent, to $5.96 LOE per Boe for the quarter ended 30 September 2014 compared to the same period in 2013. For the nine-months ended 30 September 2014, LOE per Boe decreased by $3.61, or 34.7 percent, to $6.80 as compared to $10.41 for the same period in 2013.
Production tax expense
As a result of the Companys continued production shift out of North Dakota and Colorado (higher production tax rate jurisdictions) and into Texas and Oklahoma (lower production tax rate jurisdictions), its average production tax expense as a percentage of revenue has decreased 2.4 percentage points (29.4 relative percent) from 8.1 percent in 2013, to 5.7 percent for the quarter ended 30 September 2014. For the nine-months ended 30 September 2014, production tax expenses as a percentage of revenue has decreased 2.1 percentage points (26.2 relative percent) from 7.8 percent in 2013 to 5.7 percent in 2014.
All amounts shown in this report are unaudited.
3
General and administrative costs (G&A)
G&A per Boe decreased 45.9 percent to $7.04 per Boe for the quarter ended 30 September 2014 compared to the same period in 2013 as the Company captured economies of scale in its fixed overhead cost structure from increased production levels. For the nine-months ended 30 September 2014, G&A per Boe decreased to $9.12, or 52.0 percent, as compared to the same period in 2013.
Adjusted EBITDAX
Adjusted EBITDAX is defined as earnings before interest expense, income taxes, depreciation, depletion and amortisation, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share-based compensation and gains and losses on commodity hedging, net of settlements of commodity hedging.
The Companys topline revenue growth and reduced operating expenses on a per unit basis translated to growth in Adjusted EBITDAX, with the Company generating $36.0 million in Adjusted EBITDAX, or 77.6 percent of revenue, for the quarter ended 30 September 2014 compared to $17.7 million, or 61.8 percent of revenue, for the same period in 2013. For the nine-months ended 30 September 2014, Adjusted EBITDAX was $86.1 million, or 74.3 percent of revenue, compared to $32.1 million, or 58.2 percent of revenue, from the same period in 2013.
The Companys Adjusted EBITDAX growth relative to its revenue growth for the three months ended 30 September 2014 was 103.0 percent compared to the same period in 2013. Meaning, for every $1.00 that revenue increased for the period, the Companys Adjusted EBITDAX increased $1.03 due to operating cost control measures. For the nine months ended 30 September 2014, Adjusted EBITDAX growth relative to its revenue growth was 89.0 percent compared to the same period in 2013 (for every $1.00 that revenue increased, Adjusted EBITDAX increased $0.89).
All amounts shown in this report are unaudited.
4
The Company utilises derivative contracts to manage and protect against commodity price risk. As at 30 September 2014, the following derivative contracts were in place:
|
|
Oil Derivative Contracts |
|
Gas Derivative Contracts |
|
|
|
Weighted Average |
|
Weighted Average |
|
Year |
|
Units (Bbls) |
|
Floor |
|
Ceiling |
|
Units (Mcf) |
|
Floor |
|
Ceiling |
|
Q4 2014 |
|
91,500 |
|
$ |
94.30 |
|
$ |
100.61 |
|
150,000 |
|
$ |
4.25 |
|
$ |
4.42 |
|
2015 |
|
246,000 |
|
$ |
89.93 |
|
$ |
97.19 |
|
240,000 |
|
$ |
4.14 |
|
$ |
4.14 |
|
2016 |
|
60,000 |
|
$ |
94.10 |
|
$ |
94.10 |
|
|
|
$ |
|
|
$ |
|
|
Total |
|
397,500 |
|
$ |
92.78 |
|
$ |
97.30 |
|
390,000 |
|
$ |
4.19 |
|
$ |
4.28 |
|
Exploration & Development
The Companys exploration and development activities are focused in the Eagle Ford formation (Texas) and the Mississippian/Woodford formations in the Greater Anadarko Basin (Oklahoma). Costs incurred for exploration, development and production expenditures in the quarter ended 30 September 2014 totaled $84.5 million. This investment resulted in the addition of 26 gross (17.2 net) producing wells with an additional 29 gross (19.1 net) wells in progress as at 30 September 2014. Excluding capitalised overhead, interest and asset reclamation obligations of $6.3 million, year-to-date development and production costs through 30 September 2014 were $234.2 million. We anticipate fourth quarter development capital expenditures of $65 to $70 million, bringing full year development capital expenditures of $299 to $304 million, which is $9 to $14 million (approximately 3.1 percent) higher than the high-end of the $270 to $290 million range previous guidance due to faster than expected drilling.
In late 2013, the Company shifted to pad drilling in the Eagle Ford. All wells on the pads are planned to be drilled and completed prior to commencing production. The Company added a dedicated frac crew for completion operations in the Eagle Ford in the second quarter. During the third quarter of 2014, the Company completed 14 gross (10.5 net) wells in the Eagle Ford with all of those wells beginning production. The Company expects initial production from 10-13 gross Sundance operated Eagle Ford wells in the fourth quarter of 2014.
The Companys development activities for the quarter ended 30 September 2014 are summarised below:
All amounts shown in this report are unaudited.
5
|
|
PRODUCING |
|
IN PROGRESS |
|
GROSS WELLS |
|
30-Jun-14 |
|
New |
|
Acquired |
|
Sold |
|
30-Sep-14 |
|
Drilling |
|
Waiting on Frac |
|
Fraccing/ Production Testing |
|
Total |
|
Eagle Ford |
|
30 |
|
14 |
|
18 |
|
|
|
62 |
|
3 |
|
6 |
|
8 |
|
17 |
|
Anadarko Basin |
|
43 |
|
12 |
|
|
|
|
|
55 |
|
3 |
|
8 |
|
1 |
|
12 |
|
DJ Basin (1) |
|
104 |
|
|
|
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
Williston Basin (2) |
|
71 |
|
|
|
|
|
(71 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
248 |
|
26 |
|
18 |
|
(175 |
) |
117 |
|
6 |
|
14 |
|
9 |
|
29 |
|
|
|
PRODUCING |
|
IN PROGRESS |
|
NET WELLS |
|
30-Jun-14 |
|
New |
|
Acquired |
|
Sold |
|
30-Sep-14 |
|
Drilling |
|
Waiting on Frac |
|
Fraccing/ Production Testing |
|
Total |
|
Eagle Ford |
|
25.0 |
|
10.5 |
|
7.2 |
|
|
|
42.7 |
|
2.5 |
|
5.0 |
|
6.4 |
|
13.9 |
|
Anadarko Basin |
|
17.3 |
|
6.7 |
|
|
|
|
|
24.0 |
|
1.1 |
|
3.1 |
|
1.0 |
|
5.2 |
|
DJ Basin (1) |
|
72.2 |
|
|
|
|
|
(72.2 |
) |
|
|
|
|
|
|
|
|
|
|
Williston Basin (2) |
|
1.9 |
|
|
|
|
|
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
Total |
|
116.4 |
|
17.2 |
|
7.2 |
|
(74.1 |
) |
66.7 |
|
3.6 |
|
8.1 |
|
7.4 |
|
19.1 |
|
(1) DJ Basin assets were disposed in July
(2) Williston assets were disposed in July
All amounts shown in this report are unaudited.
6
The Companys capital expenditures for the quarter ended 30 September 2014 are summarised below:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
30 September |
|
30 September |
|
Unaudited (US$000s) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
Capital Expenditures |
|
|
|
|
|
|
|
|
|
Exploration & evaluation |
|
$ |
7,086 |
|
$ |
5,872 |
|
$ |
26,426 |
|
$ |
10,812 |
|
Development & production |
|
77,429 |
|
70,746 |
|
240,451 |
|
128,162 |
|
Total capital expenditures (1) |
|
$ |
84,515 |
|
$ |
76,618 |
|
$ |
266,877 |
|
$ |
138,974 |
|
(1) Represents total costs incurred, not cash paid, for capital expenditures during the quarter. Amounts exclude $35 million of costs incurred from acquisitions during 2014.
Eagle Ford
During the quarter, 14 gross (10.5 net) Eagle Ford wells began production. As at 30 September 2014, the Company had 17 gross (13.9 net) wells drilling, waiting on completion, fraccing or production testing. Eagle Ford contributed 5,124 Boe/d (72.8 percent) of total production during the quarter compared to 1,859 Boe/d (51.5 percent) of total Boe/d produced during the same period of 2013. The Company operated 98.6 percent of its Eagle Ford production for the quarter.
In July, Sundance completed the acquisition of approximately 5,700 net Eagle Ford acres plus an additional 5,400 net Georgetown acres in Dimmit County, South Texas, for approximately $35 million. Sundance also has the option, at its sole discretion, to acquire the Sellers remaining working interests for an additional $45 million.
Greater Anadarko Basin
During the quarter, 12 gross (6.7 net) Mississippian and Woodford wells had initial production; of which 7 gross (5.8 net) were Sundance-operated. As at 30 September 2014, Sundance had 12 gross (5.2 net) wells drilling, waiting on completion, fraccing or production testing. Anadarko contributed 1,574 Boe/d (22.4 percent) of total production during the quarter compared to 541 Boe/d (15.0 percent) of total Boe/d produced during the same period of 2013. The Company operated 77.5 percent of its Anadarko production for the quarter.
Denver-Julesburg Basin
In July, Sundance divested of its Denver-Julesburg Basin assets for approximately $113.4 million.
Williston Basin
The Companys only remaining Bakken asset was sold in July 2014 for approximately $14 million, which included $10 million in cash and approximately $4 million in settlement of a net liability due to the buyer.
All amounts shown in this report are unaudited.
7
As at 30 September 2014, the Company had approximately $50.9 million of cash and cash equivalents and $65.0 million of undrawn borrowing capacity under its reserve based lending facility. A redetermination of the Companys borrowing base is underway with its bank syndicate, which is expected to increase availability under the facility.
Yours sincerely,
Sundance Energy Australia Limited
Eric McCrady
Managing Director and Chief Executive Officer
For further advice on this release, please contact:
United States |
|
Australia |
Eric McCrady |
|
Mike Hannell |
Managing Director and CEO |
|
Chairman |
Tel: 303-543-5703 |
|
Tel: +61 8 8363 0388 |
About Sundance Energy Australia Limited
Sundance Energy Australia Ltd (ASX: SEA) is an Adelaide-based, independent energy exploration Company, with a wholly owned US subsidiary, Sundance Energy, Inc., located in Colorado, USA. The Company is developing projects in the US where it is primarily focused on large, repeatable resource plays where it develops and produces oil and natural gas reserves from unconventional formations.
A comprehensive overview of the Company can be found on the Companys website at www.sundanceenergy.com.au.
All amounts shown in this report are unaudited.
8
Appendix 5B
Mining exploration entity quarterly report
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Sundance Energy Australia Limited
ABN |
|
Quarter ended (current quarter) |
|
76 112 202 883 |
|
30 September 2014 |
|
Consolidated statement of cash flows
|
|
Current quarter US$000 |
|
Year to date (9 months) US$000 |
|
Cash flows related to operating activities |
|
|
|
|
|
1.1 |
Receipts from product sales and related debtors |
|
40,024 |
|
110,673 |
|
|
|
|
|
|
|
1.2 |
Payments |
(a) exploration & evaluation |
|
(5,807 |
) |
(25,340 |
) |
|
(b) development |
|
(98,539 |
) |
(287,321 |
) |
|
(c) production |
|
(5,246 |
) |
(18,261 |
) |
|
(d) administration |
|
(2,838 |
) |
(11,972 |
) |
|
|
|
|
|
|
1.3 |
Dividends received |
|
|
|
|
|
1.4 |
Interest and other items of a similar nature received |
|
57 |
|
163 |
|
1.5 |
Interest and other costs of finance paid |
|
(1,125 |
) |
(2,569 |
) |
1.6 |
Income taxes paid |
|
|
|
(14,171 |
) |
1.7 |
Other (derivatives) |
|
(53 |
) |
(640 |
) |
|
|
|
|
|
|
|
|
Net Operating Cash Flows |
|
(73,527 |
) |
(249,438 |
) |
|
|
|
|
|
|
|
|
Cash flows related to investing activities |
|
|
|
|
|
1.8 |
Payment for purchases of: (a) prospects |
|
(31,565 |
) |
(34,865 |
) |
|
(b) equity investments |
|
|
|
|
|
|
(c) other fixed assets |
|
(107 |
) |
(616 |
) |
1.9 |
Proceeds from sale of: (a) prospects (1) |
|
123,426 |
|
119,159 |
|
|
(b) equity investments |
|
|
|
|
|
|
(c) other fixed assets |
|
|
|
107 |
|
1.10 |
Loans to other entities |
|
|
|
|
|
1.11 |
Loans repaid by other entities |
|
|
|
|
|
1.12 |
Other (changes in escrow) |
|
|
|
(101 |
) |
|
|
|
|
|
|
|
|
Net investing cash flows |
|
91,754 |
|
83,684 |
|
1.13 |
Total operating and investing cash flows (carried forward) |
|
18,227 |
|
(165,754 |
) |
1.13 |
Total operating and investing cash flows (brought forward) |
|
18,227 |
|
(165,754 |
) |
|
|
|
|
|
|
|
Cash flows related to financing activities |
|
|
|
|
|
1.14 |
Proceeds from issues of shares, options, etc. |
|
|
|
68,502 |
|
1.15 |
Proceeds from sale of forfeited shares |
|
|
|
|
|
1.16 |
Proceeds from borrowings |
|
35,000 |
|
115,000 |
|
1.17 |
Repayment of borrowings |
|
(35,000 |
) |
(65,000 |
) |
1.18 |
Dividends paid |
|
|
|
|
|
1.19 |
Other |
|
|
|
(35 |
) |
|
|
|
|
|
|
|
Net financing cash flows |
|
|
|
118,467 |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash held |
|
18,227 |
|
(47,287 |
) |
|
|
|
|
|
|
1.20 |
Cash at beginning of quarter/year to date |
|
32,597 |
|
96,871 |
|
1.21 |
Exchange rate adjustments to item 1.20 |
|
74 |
|
1,314 |
|
|
|
|
|
|
|
1.22 |
Cash at end of quarter |
|
50,898 |
|
50,898 |
|
+ See chapter 19 for defined terms.
17/12/2010
9
(1) During the second quarter of 2014, the Company paid approximately $4.3 million related to the post-closing settlement of the Phoenix disposition.
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
|
|
Current quarter US$000 |
|
1.23 |
Aggregate amount of payments to the parties included in item 1.2 |
|
222 |
|
1.24 |
Aggregate amount of loans to the parties included in item 1.10 |
|
NIL |
|
1.25 |
Explanation necessary for an understanding of the transactions |
|
|
|
|
|
|
|
|
|
Item 1.23 includes cash payments for salaries and fees paid to directors during the quarter. |
|
|
|
Non-cash financing and investing activities
2.1 |
|
Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
|
|
|
|
|
Included as part of the settlement for the disposition of our remaining Williston assets was the relief of a net payable due to the buyer of $4.0 million ($17.1 payable and $13.1 receivable). |
10
2.2 |
|
Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
Financing facilities available
Add notes as necessary for an understanding of the position.
|
|
|
|
Amount available US$000 |
|
Amount used US$000 |
|
3.1 |
|
Loan facilities (Senior and Junior Credit Facility) |
|
145,000 |
|
80,000 |
|
3.2 |
|
Credit standby arrangements |
|
NIL |
|
NIL |
|
Estimated cash outflows for next quarter
|
|
|
|
US$000 |
|
4.1 |
|
Exploration and evaluation |
|
(9,500 |
) |
4.2 |
|
Development |
|
(65,000 |
) |
4.3 |
|
Production |
|
(7,900 |
) |
4.4 |
|
Administration |
|
(4,500 |
) |
|
|
Total |
|
(82,850 |
) |
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
|
|
|
|
Current quarter US$000 |
|
Previous quarter US$000 |
|
5.1 |
|
Cash on hand and at bank |
|
50,898 |
|
32,596 |
|
5.2 |
|
Deposits at call |
|
|
|
|
|
5.3 |
|
Bank overdraft |
|
|
|
|
|
5.4 |
|
Other |
|
|
|
|
|
|
|
Total: cash at end of quarter (item 1.22) |
|
50,898 |
|
32,596 |
|
11
Changes in interests in mining tenements
|
|
|
|
Tenement reference |
|
Nature of interest (note (2)) |
|
Interest at beginning of quarter |
|
Interest at end of quarter |
6.1 |
|
Interests in mining tenements relinquished, reduced or lapsed |
|
Denver-Julesburg Basin |
|
Sold approximately 9,887 net acres |
|
9,887 |
|
|
|
|
|
|
Williston Basin |
|
Sold approximately 3,166 net acres |
|
3,166 |
|
|
6.2 |
|
Interests in mining tenements acquired or increased |
|
Eagle Ford Formation |
|
Purchase of approximately 5,924 net acres |
|
13,955 |
|
19,879 |
|
|
|
|
Georgetown Formation |
|
Purchase of approximately 5,418 net acres |
|
|
|
5,418 |
|
|
|
|
Anadarko Basin |
|
Purchase of approximately 330 net acres |
|
45,832 |
|
46,162 |
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
|
|
|
|
Total number |
|
Number quoted |
|
Issue price per security (see note 3) (cents) |
|
Amount paid up per security (see note 3) (cents) |
7.1 |
|
Preference +securities (description) |
|
|
|
|
|
|
|
|
7.2 |
|
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs, redemptions |
|
|
|
|
|
|
|
|
7.3 |
|
+Ordinary securities |
|
548,854,663 |
|
548,854,663 |
|
|
|
|
12
7.4 |
|
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs |
|
140,000
Ordinary shares issued through exercise of stock options |
|
140,000
Ordinary shares issued through exercise of stock options |
|
|
|
|
7.5 |
|
+Convertible debt securities (description) |
|
|
|
|
|
|
|
|
7.6 |
|
Changes during quarter
(a) Increases through issues
(b) Decreases through securities matured, converted |
|
|
|
|
|
|
|
|
7.7 |
|
Options (description and conversion factor) |
|
2,730,000
options
3,409,326
RSUs* |
|
|
|
Weighted Average Option Exercise Price -
A$0.90 |
|
Weighted Average Remaining Option Term 3.7 years |
7.8 |
|
Issued during quarter |
|
Nil
Options
Nil
RSUs* |
|
|
|
|
|
|
7.9 |
|
Options exercised and RSUs* converted to ordinary shares during quarter |
|
140,000
options
Nil
RSUs* |
|
|
|
Weighted Average Option Exercise Price -
A$1.15 |
|
|
7.10 |
|
Expired during quarter |
|
560,000 options
85,012
RSUs* |
|
|
|
Weighted Average Option Exercise Price -
A$1.15 |
|
|
7.11 |
|
Debentures (totals only) |
|
|
|
|
|
|
|
|
7.12 |
|
Unsecured notes (totals only) |
|
|
|
|
|
|
|
|
* RSUs - Restricted share units
13
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: |
|
Date: 31 October 2014 |
|
|
|
|
Managing Director and Chief Executive Officer |
|
Print name: |
Eric McCrady |
|
Notes
1 The quarterly report provides a basis for informing the market how the entitys activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
14
Exhibit
99.3
|
Sundance Energy
Australia Limited (ASX: SEA) Execute Deliver Grow October 2014
|
|
This
presentation has been prepared by Sundance Energy Australia Limited (ABN 76
112 202 883). Summary information The following disclaimer applies to this
document and any information contained in it (the Information). The
Information in this presentation is of general background and does not
purport to be complete. It should be read in conjunction with Sundances
other periodic and continuous disclosure announcements lodged with ASX
Limited, which are available at www.asx.com.au. You are advised to read this
disclaimer carefully before reading or making any other use of this document
or any information contained in this document. In accepting this document, you
agree to be bound by the following terms and conditions including any
modifications to them. Not financial or product advice This presentation is
for information purposes only and is not a prospectus, product disclosure
statement or other offer document under Australian law or the law of any
other jurisdiction. This presentation is not financial product or investment
advice or a recommendation to acquire Sundance shares, legal or tax adv ice.
This presentation has been prepared by Sundance without taking into account
the objectives, financial situation or needs of individuals. You are solely
responsible for forming your own opinions and conclusions on such matters and
the market and f or making your own independent assessment of the
Information. You are solely responsible for seeking independent professional
adv ice in relation to the Information and any action taken on the basis of
the Information. Before making an investment decision prospective investors
should consider the appropriateness of the information having regard to their
own objectives, financial and tax situation and needs and seek legal and
taxation advice appropriate to their jurisdiction. Sundance is not licensed
to provide financial product advice in respect of Sundance shares. Cooling
off rights do not apply to the acquisition of Sundance shares. Financial data
All share price information is in Australian dollars (A$) and all other
dollar values are in United States dollars (US$) unless stated otherwise.
Sundances results are reported under Australian International Financial
Reporting Standards. Past performance Past performance information given in
this presentation is given for illustrative purposes only and should not be
relied upon as (and is not) an indication of the Company s views on its
future financial performance or condition. Investors should note that past
performance, including past share price performance, of Sundance cannot be
relied upon as an indicator of (and provides no guidance as to) future
Sundance performance including future share price performance. Investment
risk An investment in Sundance shares is subject to investment and other
known and unknown risks, some of which are beyond the control of Sundance.
Sundance does not guarantee any particular rate of return or the performance
of Sundance, nor does it guarantee the repayment of capital from Sundance or
any particular tax treatment. Persons should have regard to the risks
outlined in the Information. Disclaimers Disclaimers 2
|
|
Not an offer
The Information does not constitute an offer, invitation, solicitation or
recommendation in relation to the subscription, purchase or sale of
securities in any jurisdiction. Neither this presentation nor anything in it
shall form any part of any contract for the acquisition of Sundance shares.
The distribution of this presentation in jurisdictions outside Australia may
be restricted by law and you should observe any such restrictions. In
particular, this presentation does not constitute an offer to sell, or a
solicitation of an offer to buy, securities in the United States. Any
securities described in this presentation have not been, and will not be,
registered under the US Securities Act of 1933 and may not be offered or sold
in the United States except in transactions exempt from, or not subject to,
registration under the US Securities Act and applicable US state securities
laws. No securities described in this presentation will be offered in the
United States. Disclaimer Except as required by law, no representation or warranty
(express or implied) is made as the fairness, accuracy, completeness,
reliability or correctness of the Information, opinions and conclusions, or
as to the reasonableness of any assumption contained in this document. By
receiving this document and to the extent permitted by law, you release Sundance
and its officers, employees, agents and associates from any liability
(including, without limitation, in respect of direct, indirect or
consequential loss or damage or loss or damage arising by negligence) arising
as a result of the reliance by you or any other person on anything contained
in or omitted from this document. Forward Looking Statements This
presentation includes forward-looking statements. These statements relate to
Sundances 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. The forward-looking statements reflect the Company s views
and assumptions with respect to future events as of the date of this presentation
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 f actors, many of which are
beyond our ability to control or predict. Given these uncertainties, no one
should place undue reliance on any forwardlooking statements attributable to
Sundance, or any of its affiliates or persons acting on its behalf. Although
every effort has been made to ensure this presentation 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. Reserves This presentation contains information on Sundance
Energys reserves and resources which has been reviewed by David
Ramsden-Wood, Professional Engineer, who is licensed in Alberta Canada and is
qualified in accordance with ASX Listing Rule 5.11. Mr. Ramsden-Wood, VP of
Reservoir Engineering and Business Development, has consented to the
inclusion of this information in the form and context in which it appears.
Disclaimers (continued) Disclaimers (continued) 3
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Assets in
Leading US Liquids Basins Assets in Leading US Liquids Basins 4 Ticker: SEA
(ASX Listed) Share count: 549.2 million Market capitalization: A$643 million
Enterprise value: $596 million Note: Above based on Company filings, press
release s and January 1, 2014 NSAI reserve s report. Market capitalization
and enterprise value shown a s of 27 October 2014, based on debt of $80mm and
cash of $51mm; Production numbers represent 3Q14 average daily production (1)
Based on analysts consensus estimates (2) Excludes evaluation of the
majority of t he Companys potential Woodford location s (3) Pro forma for DJ
Basin asset divestiture (1P reserve s of 4.7 mmboe) and Williston Basin divestiture
(1P reserves of 1.4 mmboe), both of which closed in July 2014. (4) 2014 exit
rate of Company guidance. 2014 Consensus EBITDAX: $142 million(1) Proved
reserves: 14.7 mmboe (64% oil)(3) 3P reserves: 78.9 mmboe (52% EGFD)(3) 3Q14
daily production: 7,035 boed (71% oil) 2014 Exit Rate: 8,000 9,000 boed(4)
Net acres: ~20,000 1P reserves: 10.3 mmboe Production: 5,124 boed South Texas
Eagle Ford Net acres: ~32,000 1P reserves: 4.4 mmboe(2) Production: 1,574
boed Greater Anadarko Mississippian / Woodford
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Monetized DJ and Williston Basin positions
freeing up ~$128 million to invest in growing the business Average production
of 7,035 boepd (net of royalties) in the third quarter of 2014 An overall
increase of 21% from Q2 2014 despite the sale of the Companys DJ &
Bakken assets Generated third quarter 2014 revenue of $46.5MM and Adjusted
EBITDAX of $36.0MM 78% Adjusted EBITDAX margin in lower price environment
Increased the Companys Eagle Ford position to ~20,000 net mineral acres
~11,900 acreage increase that will be included in the Companys year-end
reserve evaluation Production highlights include: 14 gross (10.5 net) Eagle
Ford wells brought into production in the third quarter of 2014 A total of 21
gross (15.7 net) Eagle Ford wells brought into production YTD The Company
expects to complete an additional 10-13 gross Eagle Ford wells in the fourth
quarter of 2014 Quarterly Overview Quarterly Overview 5
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Production and
Revenue Trend Production and Revenue Trend 6 Increased production by ~1,237
boepd (21%) compared to Q2 2014 Excluding DJ and Bakken, production increased
1,878 boepd (39%) from Q2 2014 Production in line with Company expectations
of achieving full year guidance of: Ave. rate of 6,700 - 7,500 boepd Exit
rate of 8,000 - 9,000 boepd Generated $46MM in revenue Realized oil price of
$93.08/bbl and natural gas price of $3.27/mcf
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Adjusted
EBITDAX Trend Adjusted EBITDAX Trend 7 EBITDAX margin increased to 78% from
62% in Q3 2013 Lease operating costs declined to $5.96/boe from $12.78/boe in
Q3 2013 Decline driven primarily through efficiencies generated from
restructuring our Eagle Ford field operations G&A costs declined to
$7.04/boe from $13.02/boe in Q3 2013 as fixed overhead costs have been
diluted by a higher production base Reduced production taxes as a percent of
revenue to 5.7% from 8.1% in Q3 2013 Reduction due to the Companys
production shift to lower production tax rate jurisdictions Adjusted EBITDAX
earnings before interest expense, income taxes, depreciation, depletion, amortisation,
property impairments, gain/(loss) on sale of non-current assets, exploration
expense, share-based compensation and gains/(losses) on commodity hedging,
net of settlements on commodity hedging. Adjusted EBITDAX Margin Adjusted
EBITDAX as a percentage of revenue.
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Liquidity and
Capital Expenditures Liquidity and Capital Expenditures 8 Liquidity and cash
flow Development capital expenditures (million $) (million $) Cash 50.9 YTD
30 September 2014 development cap ex 234 Net non-cash working capital (23.7)
Estimated Q4 2014 development cap ex 65 Net working capital 27.2 2014 cap ex
guidance (2) 299 Undrawn borrowing capacity (1) 65.0 Total Balance Sheeet
Liquidity 92.2 (2) Compared to previous guidance of $290 million
(approximately $9 million (3%) higher); the Company is drilling faster than
expected (1) Borrowing base redetermination underway
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Eagle Ford
Project Increased to ~20,000 Net Acres Eagle Ford Project Increased to
~20,000 Net Acres 9
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2014 Eagle Ford
IPs 2014 Eagle Ford IPs 10 Well Name Lateral Length Working Interest (Net
Wells) 24-Hour 30-Day 60-Day 90-Day 180-Day Teal Ranch EFS 3H 5,915 100% 863
650 593 534 - Quintanilla SMEF 4H 5,322 50% 1,019 653 552 - - Quintanilla
SMEF 5H 5,527 50% 1,021 674 576 - - Quintanilla SMEF 6H 5,480 50% 1,354 705
631 - - Quintanilla SMEF 7H 5,577 50% 1,092 605 517 - - Hoskins EFS 7H (1)
4,492 100% 1,328 627 598 - - Hoskins EFS 8H 5,250 100% 929 416 379 - -
Hoskins EFS 9H 5,320 100% 871 480 412 - - Hoskins EFS 10H 5,545 100% 776 463
467 - - Me/You EFS 1H 6,190 50% 739 397 - - - Q-Kiel EFS 1H 5,281 50% 970 499
- - - Shannon EFS 4H 7,294 86% 1,428 895 - - - Shannon EFS 5H 7,339 85% 1,439
1,004 - - - Tyler Ranch EFS 5H 4,543 83% 1,111 - - - - Q3 Average Well 5,648
10.5 1,067 621 525 534 - Shannon EFS 2H 6,838 85% 1,481 1,049 998 985 791
Shannon EFS 3H 7,840 85% 1,663 1,095 1,029 995 832 Q Ballard EFS 2H 5,401 50%
1,086 577 542 501 429 Q Ballard EFS 3H 5,212 50% 909 602 576 536 460 Q Kiel
EFS 3H 6,729 50% 740 490 514 500 - Quintanilla CCR EFS 2H 4,406 100% 686 362
378 - - Wheeler EFS 2H 4,385 100% 375 233 213 - - Q1/Q2 Average Well 5,830
3.5 991 630 607 703 628 2014 Development Program 5,709 14.03 1,042 624 561
675 628 (1) The Hoskins EFS 7H has 54 days of production included as its
60-day IP. The rate will be updated in future releases.
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2014 Wells
Outperform 2013 Wells by 30% per Foot 2014 Wells Outperform 2013 Wells by 30%
per Foot 11
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McMullen
Project Overview McMullen Project Overview 12 Well Economics McMullen Gross
(net) locations ~180 (~127.5) Spacing assumptions 40 80 acres Well cost
$7.5 - $9.5 million EUR (mboe) 375 - 525 Estimated oil 65% - 80% LOE per boe
$5.00 - $7.00 Estimated NPV per well $3.1 - $7.1 million(2) Well economics
(1) McMullen Area Eagle Ford well control LEGEND SEA Acreage Cabot Eagle Ford
Wells Chesapeake Eagle Ford Wells EOG Eagle Ford Wells Marathon Eagle Ford
Wells Conoco Eagle Ford Wells SEA Eagle Ford Wells Swift Eagle Ford Wells St.
Mary Eagle Ford Wells Talisman Eagle Ford Wells Murphy Eagle Ford Wells Pioneer
Eagle Ford Wells Source: Company filings and press releases (1) Based on
internal Sundance estimates (2) $90 Flat Oil (x103% LLS); $4.25 Flat Gas;
NGLs at 40% of WTI
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Dimmit County
Overview Dimmit County Overview 13 Source: Company filings and press releases
(1) Based on internal Sundance estimates (2) $90 Flat Oil: $4.25 Flat Gas,
$3.5MM capex N 10 miles Dimmit Eagle Ford well control Well Economics Dimmit
Gross (net) locations ~115 (~69) Spacing assumptions 40 80 acres Well cost
$5.5 - $7.5 million EUR (mboe) 350 - 500 Estimated oil 55% -60% LOE per boe
$5.00 - $7.00 Estimated NPV per well $1.9 - $5.5 million(2) Well economics
(1) LEGEND SEA Acreage Anadarko Eagle Ford Wells Chesapeake Eagle Ford Wells
Newfield Eagle Ford Wells Talisman Eagle Ford Wells Murphy Eagle Ford Wells
SEA Eagle Ford Wells Swift Eagle Ford Wells St. Mary Eagle Ford Wells
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Mississippian/Woodford
Overview Mississippian/Woodford Overview 14
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Initial production rates increased by ~19%
in the Mississippian Increase efficiency with potential to drive well cost to
~$3.0-$3.3 million Mississippian Zipper Fracs Mississippian Zipper Fracs 15
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Strategically located salt water disposal
wells Electric lines on 85% of production facilities Aggressive use of rod
pumps vs. higher cost electric submersible pumps Completion design eliminates
need for jet pumps Mississippian LOE Reduction (3 month trailing average)
Mississippian LOE Reduction (3 month trailing average) 16
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Logan County
Logan County Mississippian Lime Economics Mississippian Lime Economics 17 1
Based on internal management estimates. 2 $90 Flat Oil: $4.25 Flat Gas,
$3.5MM capex. 0 10 20 30 40 50 60 70 80 90 100 75 85 95 105 IRR (%) Nymex
Price/Bbl 3% Discount to WTI; $4.25/Mcf flat; no NGL's Rate of Return
Sensitivities $3.5 MM Well with 65% Oil 200 MBoe 250 MBoe (2) Well Economics
(1) Gross (Net) Locations 100 150 Spacing assumption (acres) 160 210
Average well cost ($MM) $3.5 EUR (MBoe) 200 - 250 Estimated Oil (%) 50 70
LOE per Boe $8 - $12 Estimated NPV per well ($MM) $0.5 - $2.7(2) 30 day IP ()
Boe/d 125 - 350 6 mi N Osage Exploration Slawson Sundance Energy Devon Energy
LEGEND Horizontals by Operator SE A creage Development Pods SE SWD wells X
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Woodford
Results Woodford Results 18 Well Name 24-Hour 30-Day 60-Day 90-Day 180-Day
Waldridge 17-4-4-1HW 459 171 134 111 74 Frick 16-4-13-1HW 334 202 165 140 90
Graff 19-3-30-1HW 371 212 162 134 - Cimarron River 16-4-12-1HW 714 304 261
222 - Kay Rother 16-4-14-1HW 123 84 72 - - Davis Partners 16-3-15-1HW 266 168
- - - Woodford Average 378 190 159 152 82
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Activity
Pipeline Activity Pipeline 19 Borrowing base upgrade Q414 New Mississippian
well results Q115 Additional results from new Eagle Ford completion designs
Q115 Continued Growth in Eagle Ford Acreage/ Drilling Inventory (currently
~20,000 net acres) Reserve upgrade Q115
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Appendix
Appendix 20
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Board of
Directors Mike Hannell, Chairman 45 years experience in upstream and
downstream petroleum industry. Previously held senior positions with Santos
Ltd and Mobil Oil. Eric McCrady, Managing Director & CEO Previously CFO
of Sundance Energy. More than 15 years entrepreneurial experience with an
extensive track record in M&A, JVs, IPOs, privatization transactions, and
senior and mezzanine debt transactions. Damien Hannes, Non-Executive Director
More than 25 years finance experience; most recently, 15 years with Credit
Suisse in Asia Pacific region. Weldon Holcombe, Non-Executive Director More
than 30 years technical, operational and managerial experience in leading US
unconventional resource plays. Most recently Executive VP, Mid-Continent
Region for Petrohawk Energy Corporation. Neville Martin, Non-Executive
Director Former partner and current consultant at Minter Ellison in Adelaide.
40 years experience in corporate law and mining and gas law. Former state
president of the Australian Mining & Petroleum Law Association.
Experienced Board and Management Experienced Board and Management 21
Management Eric McCrady, Managing Director & CEO Previously CFO of
Sundance Energy. More than 15 years entrepreneurial experience with an
extensive track record in M&A, JVs, IPOs, privyatization transactions,
and senior and mezzanine debt transactions. Cathy Anderson, Chief Financial
Officer Certified Public Accountant with over 25 years experience with
companies including Key Production (predecessor of Cimarex), OptiGas and
Arthur Andersen. Grace Ford, Vice President, Exploration & Development
More than 15 years geologic experience in exploration, development, resource
play evaluation, well design/ development/completion and reservoir
characterization with companies including EOG Resources, Baytex Energy USA
and Marathon. Mike Wolfe, Vice President, Land More than 30 years senior
land experience in the oil and gas industry with companies such as Cimarex
and Texaco. Experience encompasses field leasing, title, lease records and
management of multi-rig drilling programs. David Ramsden-Wood, VP, Reservoir
Engineering & Business Dev. Professional Engineer licensed in Canada with
more than 15 years engineering experience across all engineering disciplines
with a focus on reservoir engineering, strategic & financial planning and
production engineering with companies including Enerplus, Anadarko and
Canadian Hunter. John Whittington, Vice President, Operations More than 20
years experience focused on the development and optimization of onshore US
resource plays with a particular focus on completion optimization and
production operations with companies including Triangle Petroleum, EOG,
Schlumberger, and Apex Petroleum Engineering.
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