Acquisition and Capital Raising

Source Press Release
Company Sundance Energy Inc.ALFA, S.A.B. de C.VPioneer Natural Resources CompanyReliance Industries Limited 
Tags Equity Financing, Financing, Asset Deals, Deals, Shale Oil, Shale Gas, Eagle Ford, Unconventional Resources, Upstream Activities
Date March 15, 2018

Acquisition and Capital Raising

  • Sundance announced that it has entered into an agreement to acquire 21,900 net acres and 1,800 boe/d in the Eagle Ford Shale for approximately US$221.5 million
  • The acreage to be acquired is primarily in the volatile oil window of the Eagle Ford, proximal to the Company’s existing operations in McMullen, Live Oak, Atascosa and La Salle counties in Texas
  • In connection with the transaction, Sundance has entered into new long-termmidstream contracts providing firm capacity to move oil and natural gas to market at market rates
  • Sundance is raising $260 million of new equity comprised of US$202 million of commitments that have been received for the two-tranche placement plus a fully underwritten Entitlement Offer to raise $58 million. In addition, the Company will refinance its debt facilities with a US$250 million syndicated second lien term loan and a syndicated revolver with initial availability expected to be US$87.5 million. The capital raise and refinancing will fund the acquisition and provide approximately US$136 million of liquidity to develop the assets.
  • Pro forma for the acquisition, Sundance will be a leading Eagle Ford operator with 57,000 net acres and pro forma production of 10,300 boe/d (estimated average fourth quarter 2017 production)

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