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Sundance Energy Provides January 2019 Operational Update

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by February 1, 2019 PRESS RELEASES

DENVER, Jan. 31, 2019 (GLOBE NEWSWIRE) — Sundance Energy Australia Limited (ASX: SEA) (NASDAQ: SNDE) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford in South Texas is pleased to announce that it exceeded its production guidance for full year 2018 and met its production guidance for fourth quarter 2018. The Company’s full year 2018 net production averaged approximately 10,000 Boe/d including flared volumes, at the top end of full year net production guidance of 9,000 to 10,000 Boe/d. During the fourth quarter of 2018, the Company produced approximately 14,000 Boe/d including flared volumes, meeting fourth quarter production guidance of 14,000 to 15,000 Boe/d.

The Company’s cumulative net production for the fourth quarter was approximately 1,300,000 Boe. Net production comprised approximately 900,000 barrels of oil, 150,000 barrels of natural gas liquids and 1,700,000 thousand cubic feet of natural gas. Production for the period was ~68% oil by volume.

The Company’s cumulative net production for full year 2018 was approximately 3,700,000 Boe. Net production comprised approximately 2,300,000 barrels of oil, 490,000 barrels of natural gas liquids and 5,700,000 thousand cubic feet of natural gas. Production for the year was ~61% oil by volume.

Due to better than expected well performance, the Company’s higher production volumes have resulted in increased line pressure and capacity constraints at a third-party gas processing facility earlier than planned. The Company expects the issue to be resolved in the first half of the year through a facility expansion. In the meantime, the Company has been appropriately managing production volumes and flaring additional gas volumes.

Development Activities

Sundance brought 11 gross (11 net) wells onto production during the fourth quarter, bringing the total number of gross wells brought online in 2018 to 23 (23 net).

During the fourth quarter, Sundance brought onto production 9 gross (9 net) wells on the acreage acquired from Pioneer in Live Oak County. Initial production results from all wells were significantly above the Company’s well performance expectations, and all wells continue to perform above type curve. Sundance additionally brought online two gross (two net) wells on its legacy acreage in McMullen County.

Additionally, during the fourth quarter the Company completed drilling (“SPUD to TD”) on two additional gross (two net) wells in Dimmit County with a subsequently released spot rig and at quarter’s end was in the process of drilling the Roy Esse 15H, 16H, 17H and 18H four well pad in Live Oak County.

As of the date of this report, the Company has finished drilling the Roy Esse pad and is in the process of drilling the Bracken 23H and 24H two well pad in McMullen County. During January the Company fracked the Red Ranch 18H and 19H two well pad in Dimmit County and has initiated flow back on the pad.

The Company delayed picking up a second rig in the fourth quarter of 2018 in response to weaker commodity prices, and has additionally elected to scale back first quarter 2019 development plans. During the first quarter 2019 the Company intends to drill 6 wells and complete four wells.

Financial Disclosures

Upon conclusion of its annual audit in March 2019, the Company will provide full fourth quarter financial results as well as audited financial statements for the 2018 fiscal year including a Statement of Operations, Consolidated Balance Sheet, and Statement of Cash Flows. The Company will also provide an Adjusted EBITDA reconciliation at that time.

Exhibit A: Fourth Quarter Initial Well Results

Well NameCountyIP DateCompleted
Lat Length
30-Day IP
(boepd)
30-Day /
1,000′ ft
60-Day IP
(boepd)
60-Day /
1,000′ ft
% Oil
Idylwood 04HLive Oak16-Oct6,445  1,021  158  1,079  16783%
Idylwood 05HLive Oak16-Oct5,487  1,171  213  1,152  21081%
James Keith Esse 06HLive Oak13-Nov5,175  1,212  234  1,222  23674%
James Keith Esse 07HLive Oak13-Nov5,178  923  178  966  18775%
James Keith Esse 08HLive Oak13-Nov5,180  1,119  216  1,148  22275%
James Keith Esse 09HLive Oak13-Nov5,164  1,333  258  1,291  25073%
Hoskins 20HMcMullen2-Dec7,266  561  77 – –86%
Hoskins 21HMcMullen2-Dec7,116  909  128 – –82%
Harlan Bethune 22HLive Oak15-Dec5,301 – – – –
Harlan Bethune 23HLive Oak15-Dec5,621  1,330  237 – –79%
Harlan Bethune 24HLive Oak15-Dec5,737 – – – –

 Exhibit B: Full Year 2018 Activities Overview 

Well NameCountySpud
Date
Frac Start
Date
IP
Date
Lateral
Length
30-Day IP (boe/d)60-Day IP (boe/d)90-Day IP (boe/d)
Paloma Ranch 7HMcMullen18-Jan-1817-May-182-Jun-187,690′  1,3451,017  811
Peeler Ranch 8HCAtascosa1-Mar-1828-May-1826-Jun-185,642′  484404  367
Peeler Ranch 9HCAtascosa24-Mar-1828-May-1826-Jun-185,820′  446371  314
Allen MCM 1HAMcMullen21-Apr-186-Jul-1817-Aug-188,015′  1,2911,100  942
Allen MCM 2HAMcMullen13-May-186-Jul-1817-Aug-188,234′  1,132969  843
Harlan Bethune 25HLive Oak7-May-1824-Jul-1815-Aug-184,779′  1,1021,091  974
Harlan Bethune 26HLive Oak11-May-1822-Jul-1815-Aug-184,073′  1,2341,066  920
Harlan Bethune 27HLive Oak13-May-1822-Jul-1815-Aug-183,314′  1,183901  750
Justin Tom 05HAtascosa17-Jun-1812-Aug-183-Sep-186,258′  1,2961,1461,003
Justin Tom 06HAtascosa14-Jun-1812-Aug-183-Sep-186,299′  1,042826834
Harlan Bethune 34HLive Oak25-Jun-183-Aug-1819-Aug-183,528′  1,6911,588  1,344
Harlan Bethune 35HLive Oak22-Jun-183-Aug-1819-Aug-183,702′  1,7381,579  1,321
James Keith Esse 06HLive Oak26-Jul-1812-Oct-1813-Nov-185,175′1,2121,222
James Keith Esse 07HLive Oak22-Jul-1812-Oct-1813-Nov-185,178′923966
James Keith Esse 08HLive Oak24-Jul-1812-Oct-1813-Nov-185,180′1,1191,148
James Keith Esse 09HLive Oak20-Jul-1812-Oct-1813-Nov-185,164′1,3331,291
Idylwood 04HLive Oak3-Aug-1828-Sep-1816-Oct-186,445′  1,021  1,079
Idylwood 05HLive Oak3-Aug-1828-Sep-1816-Oct-185,487′  1,171  1,152
Harlan Bethune 22HLive Oak17-Sep-1827-Nov-1815-Dec-185,301′
Harlan Bethune 23HLive Oak21-Sep-1827-Nov-1815-Dec-185,621′1,330
Harlan Bethune 24HLive Oak25-Sep-1827-Nov-1815-Dec-185,737′
Hoskins 20HMcMullen25-Sep-189-Nov-182-Dec-187,266′561
Hoskins 21HMcMullen27-Sep-189-Nov-182-Dec-187,116′  909
Roy Esse 15HLive Oak1-Dec-18
Roy Esse 16HLive Oak28-Nov-18
Roy Esse 17HLive Oak26-Nov-18
Roy Esse 18HLive Oak24-Nov-18
Red Ranch 18HDimmit20-Nov-188-Jan-19
Red Ranch 19HDimmit19-Nov-188-Jan-19

 

For more information, please contact:
United States:
John Roberts
VP Finance & Investor Relations
Tel: +1 (720) 638-2400
Eric McCrady
CEO and Managing Director
Tel: +1 (303) 543-5703
Australia:
Mike Hannell
Chairman
Tel: +61 8 8363 0388

About Sundance Energy Australia Limited
Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA. The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford.  A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net

Summary Information
The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov.  

Forward Looking Statements
This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.

These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf.  Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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