PERTH (miningweekly.com) – ASX-listed Sundance Energy has increased its senior secured borrowing base from $87.5-million to $122.5-million.
MD and CEO Eric McCrady said on Wednesday that the company’s pre-existing available liquidity was sufficient to support its development programmes through the second half of 2019, when Sundance anticipated to be free cash flow positive.
“This significant borrowing base increase will provide us with an additional liquidity cushion to run our business and is a vote of confidence from our lenders in recognition of the recent outstanding results of our development programme.”
Sundance in March this year undertook a $221.5-million acquisition and a $260-million capital raise.
The company acquired 21 900 acres and 1 800 bbl/d of oil equivalent in the Eagle Ford Shale, which included varying working interest in 132 wells. With the completion of the acquisition, the company has a pro-forma net reserve totalling 87.8-million barrels of oil equivalent 1P and 149.3-million barrels of oil equivalent 2P.