DENVER, Nov 2 (Bernama-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, reported its third quarter 2017 operating results.

Sundance produced approximately 9,292 Boe/d (net) during the third quarter 2017 and has averaged 7,635 Boe/d (net) year-to-date.  Production for the quarter was impacted by Hurricane Harvey which caused shut downs at substantially all midstream and downstream facilities servicing Sundance’s production.  The hurricane reduced production by approximately 1,000 boe/d during the quarter.  Additionally, the storm delayed the Company’s end of year completions program by approximately 30 days.   

Net production for the third quarter was 854,887 Boe, as compared to net production of 559,808 Boe for the same quarter in 2016, an approximate 53% increase, and net production of 627,805 for the second quarter of 2017, an approximate 36% increase. The average estimated third quarter price received per barrel was $48.19, compared to the average West Texas Intermediate (“WTI”) price of $48.16, and per Boe was $39.34.  During the fourth quarter Louisiana Light Sweet crude (“LLS”)  has traded at approximately a $5-$6 premium to WTI representing approximately a $3 increase in LLS compared to WTI from the third quarter.  Sundance’s oil is priced at LLS less applicable transportation and quality differentials.

During the quarter the Company completed 6 wells in McMullen County and has four drilled but uncompleted (“DUC”) wells in McMullen and Atascosa County that are scheduled for completion in Q4 2017.  Upon completion of the four remaining DUCs, the Company will have finished its 14 well 2017 completion program.  Six wells began production during the quarter; the three well Teal‐Hoskins pad and the three well Libersat pad with total completed lateral length of 48,279’.

The Teal-Hoskins three well pad had an average initial production rate per well of 1,735 Boe/d, at an average of 190 boe/d per 1,000 feet. The wells are currently producing 73% oil and 87% liquids. The Libersat three well pad had an average initial production rate of 1,644 boe/d, per well at an average of 237 boe/d per 1,000 feet. The wells are currently producing 51% oil and 73% liquids. These results represent some of the Company’s best wells drilled to date.

Importantly, the Teal-Hoskins B EFS 4H and the Libersat EFS 3UH, both drilled in the upper lower Eagle Ford, are outperforming the Company’s type curve. The Company believes these initial production results substantially proves up the upper lower Eagle Ford where the Company has 147 gross remaining locations.

In Dimmit County the Red Ranch EFS 32HC and the Shook EFS 11HU continue to perform materially above expectations.  The Red Ranch EFS 32HC has averaged approximately 670 boe/d for the first 170 days of production and the Shook EFS 11HU has averaged approximately 415 boe/d for the first 170 days of production.  

Grace Ford, COO, commented, “We are very pleased with the well results being generated from our current completion designs in both McMullen and Dimmit Counties.  In McMullen County we are seeing strong production profiles and, to date, no interference between the lower lower and upper lower Eagle Ford.  In Dimmit County the scientific data collected in 2015 and 2016 has resulted in a step change in well performance.  In particular, the Red Ranch well is performing economically in line with our McMullen assets opening up additional highly economic drilling inventory.”

Eric McCrady, CEO, commented, “Our operations team’s focus on improving well performance continues to show results and has resulted in some of our best wells to date across our acreage position.  To date, our development program is on track with our expectations in 2017 although initial production from the four drilled but uncompleted wells has been pushed back approximately 30 days due to Hurricane Harvey.  Finalization of the Vitol agreement, in addition to the recent increase in LLS pricing, has improved oil price realizations compared to WTI and provided more than adequate liquidity to execute this year’s business plan.”

Sundance plans to report third quarter 2017 financial results in mid‐November. A separate announcement will provide additional details on the release date and a conference call to review the results.