Sundance Energy Australia Limited (ASX: SEA) May 2014 Execute Deliver Grow
Agenda Sale of DJ Basin Interests Asset summary and strategic rationale Transaction summary Capital redeployment plan & track record Eagle Ford acquisition Asset summary Transaction summary Modelling details Activity…
Sale of DJ Basin Interests Key Points Divestiture of non-core asset for 116 million focuses portfolio in two core basins* Crystalise 104% internal rate of return over project life cycle Opportunity to re-invest capital in the Eagle…
Sale of DJ Basin Interests Transaction Summary Sale price is 116 million in cash, subject to confirmatory due diligence Sundance had a mix of operated and non-operated assets Binding and conditional PSA executed on 26 May 2014 Normal…
Sale of DJ Basin Interests Use of Funds Proceeds from sale expected to be 115.9 million (net of approx. 100,000 in transaction costs) Majority of tax gain expected to be deferred Intangible drilling credits Like-kind exchange The…
Sale of DJ Basin Interests Strong track record of value accretive transactions Transaction Prospect Basin Date Value IRR Comments (US) Ashland Prospect Late Entire interest sold following Oklahoma 46.4m 78% (Woodford Shale) 2007…
Eagle Ford Acquisition Acquisition builds Eagle Ford position to 19,500 net acres Acquisition of 5,500 net acres for US33 million Contiguous block of acreage in volatile oil window Upside with 5,500 net acres in Maverick County…
Eagle Ford Acquisition Transaction Summary Purchase price of 33 million cash plus 4 commitment wells 1 rig from McMullen Area project will be moved to Dimmit in early Q2 2014 Option to acquire additional 3,700 net Eagle Ford acres for…
Eagle Ford Project Increased to 19,500 Net Acres Georgetown Acreage: 5,500 net acres Eagle Ford Acreage: 5,500 net acres McMullen Eagle Ford Acreage: 14,000 net acres 12
Dimmit County Acquisition of 5,500 Net Acres Dimmit 4 74 4' Well Economics County 8 43 3' 7600' Gross (Net) Locations 115 (69) 4 74 Spacing assumption (acres) 40 60 4' 6042' 5 10 6' Well cost (MM)…
McMullen Area Project Increased to 14,000 Net Acres 14
2013 Eagle Ford Results vs. Internal Type Curves 16
McMullen Area - Eagle Ford Economics Rate of Return Sensitivities 8.2 MM Well - 5,500ft lateral 60 50 40 IRR (%) 30 Eagleford Type Curve 1,000 20 10 0 75 85 95 105 Nymex Price/Bbl (LLS x 103%) Boe/d 4.25/Mcf flat;…
Activity Pipeline Non-Core Asset Sales (TBD) Continued Growth in Eagle Ford Acreage/ Drilling Inventory 2014 New Mississippian & Woodford well results Q314 Additional results from new Eagle Ford completion designs…
Appendices 19
Experienced Board Board of Directors Mike Hannell, Chairman 45 years experience in upstream and downstream petroleum industry. Previously held senior positions with Santos Ltd and Mobil Oil. Eric McCrady, Managing Director & CEO…
Definitions Sundance oil prices are based on a West Texas Intermediate posted price of 93.42 per barrel and are adjusted by area for quality, transportation fees, and regional price differentials. Sundance gas prices are based on a…
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