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Sundance Energy sells Colorado assets

Sundance Energy sells Colorado assets

Photo by Bloomberg

26th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed energy explorer Sundance Energy has sold its remaining assets in the Denver-Julesburg (DJ) basin, in Colorado, in a deal worth $116-million.

The DJ basin assets included about 5 100 acres in the Wattenberg field, as well as the remaining northern Niobrara projects - Twister, Bull Canyon and Silo. The assets produced about 567 bbl of oil a day during the first quarter of 2014.

The company told shareholders on Monday that the sale price included a capital expenditure reimbursement on eight non-operated horizon wells.

“This sale of noncore projects allows the company to not only crystalise an attractive return on its DJ basin investment, but also provides a significant opportunity to reinvest capital into accelerating growth in our core projects in the Eagle Ford and Mississippian/Woodford,” said Sundance Energy MD Eric McCrady.

He noted that the cash consideration from the sale significantly bolstered Sundance Energy’s funding capacity to accelerate value creation in its existing projects, and to pursue new value accretive project acquisition opportunities.

“In line with our stated strategy, the sale of the DJ basin assets accelerates our shift towards reinvesting capital into our core company-operated projects. This strategy will enable Sundance to focus its growth in the Eagle Ford and Mississippian/Woodford - two of the highest return onshore US resource plays," McCrady said.

Edited by Creamer Media Reporter

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