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Sundance Energy raises A$80m for US exploration

26th February 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Energy explorer Sundance Energy has successfully completed an A$80-million share placement to accelerate the development of its Eagle Ford and Mississippian/Woodford acreage, in the US.

The funds raised would also be used for lease purchases and exploration.

Sundance said on Wednesday that the placement was priced at A$0.95 a share, representing a 5.9% discount to the closing price on February 20, and an 8.7% discount to the volume-weighted average for the five trading days up to and including February 20.

The company said that the placement, which was heavily oversubscribed as a result of strong investor demand, was undertaken after Sundance chose not to proceed with its US initial public offering, as it did not meet the goals and objectives of the proposed issue.

The placement shares would be issued in two tranches to professional and sophisticated investors in Australia.

During the first tranche 63.7-million shares would be issued under the company’s 15% placement capacity, with tranche 2 consisting of 20.5-million shares subject to shareholder approval at an extraordinary general meeting expected to be held in early April.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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