PERTH (miningweekly.com) – Energy explorer Sundance Energy has completed a A$48.1-million share placement to professional and sophisticated investors to accelerate development of its Eagle Ford and Mississippian/Woodford acreage.
Sundance said on Friday that the placement was priced at 86c per share, representing an 11.8% discount to the closing price on May 28, and an 8.7% discount to the five-day volume-weighted average price of Sundance shares.
“This is an exciting time for our shareholders. The proceeds from this capital raising will allow us to accelerate our pace of activity, driven by faster-than-expected drilling times in the highly economic Eagle Ford,” said Sundance MD Eric McCrady.
“This acceleration will bring forward both production growth and reserve value,” he added.
After settlement of the placement, Sundance would offer its shareholders in Australia and New Zealand an opportunity to participate in the capital raising through a share purchase plan, which would be capped at A$15-million.
The placement would also be set at 86c a share, with shareholders allowed to subscribe for up to A$15 000 in new shares.
Sundance Energy is focused on the development of its oil and natural gas projects in North America, which include activities in the Eagle Ford, Williston, Denver-Julesburg and Anadarko basins.