Sundance Energy Australia Limited (ASX: SEA) announced its proved reserves at 31 December 2017. Sundance’s year end reserves do not include the impact of the recently announced acquisition of approximately 21,900 acres in the Eagle Ford.
Due to higher expected returns on the acquired properties compared to the legacy properties included in Sundance’s year end reserves, at closing of the acquisition Sundance will likely shift a portion of its planned capital budget from its legacy assets to the acquired assets. Sundance will release a combined reserve report pro forma for the acquired assets around closing of the transaction.
Sundance’s estimated proved reserves on its legacy assets, based on Nymex strip pricing, were prepared by Ryder Scott Company, L.P.
- Proved reserves at year-end 2017 of 47.1 MMboe represent a 46% (1) increase over year-end 2016 proved reserves. Pre-tax present value of reserves (discounted at 10%) at year-end 2017 was approximately $423.5 million.
- Proved undeveloped reserves increased by 53% to 31.3 MMboe as of 31 December, 2017 reflecting successful co-development tests of the upper lower Eagle Ford in McMullen, lease additions in McMullen, and improved well productivity from 2017 wells in Dimmit County.
- Sundance’s proved reserves were 33.5% proved developed producing by volume and 79% liquids (59% oil).
- Proved reserves revisions, extensions, discoveries and other additions of 8.5 MMboe during the year
- Sundance’s reserve replacement ratio for 2017 was approximately 700%, which includes 11.3 MMboe of acquisitions of proved reserves in-place (primarily direct mineral leases)
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