UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934
For the month of January 2018
Commission File Number 000-55246
Sundance Energy Australia Limited
(Translation of registrants name into English)
633 17th Street, Suite 1950
Denver, CO 80202
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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Form 20-F x |
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Form 40-F o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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Yes o |
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No x |
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
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Exhibit |
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Description |
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99.1 |
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ASX Market Release, dated January 31, 2018 Quarterly Activities and Cashflow Report |
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ASX Market Release, dated February 2, 2018 Suspension from Official Quotation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Sundance Energy Australia Limited | |
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By: |
/s/ Cathy L. Anderson |
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Name: |
Cathy L. Anderson |
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Date: February 2, 2018 |
Title: |
Chief Financial Officer |
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ASX Announcement |
31 January 2018 |
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ASX Code: SEA |
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32 Greenhill Road, Wayville, South Australia 5034 ACN112 202 883 Telephone: +61 8 8363 0388 Facsimile: +61 8 8132 0766 www.sundanceenergy.com.au Sundance Energy Australia Limited ABN 76 112 202 883 |
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FOR IMMEDIATE RELEASE |
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General Manager |
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The Company Announcements Office |
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Australian Securities Exchange |
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SUNDANCE ENERGY AUSTRALIA LIMITED |
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QUARTERLY ACTIVITIES REPORT |
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Sundance is pleased to announce that it met its exit, Q4 and full year 2017 production guidance. The Company produced approximately 8,500 Boe/d (net) during the fourth quarter 2017, with an exit rate of approximately 9,000 Boe/d (net). Full year production averaged approximately 7,850 Boe/d (net), a 21% increase compared to 6,470 Boe/d of production in 2016. During the fourth quarter, the Company brought three new wells into production in McMullen County and one new well in Atascosa County. |
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Net production for the fourth quarter increased 4% to 779,298 Boe, as compared to net production of 750,803 Boe for the same quarter in 2016. The average estimated fourth quarter price received per barrel of oil was $52.83 and averaged $39.42 per Boe for all products. |
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During the quarter the Company completed 4 gross (3.8 net) with a total lateral length of 26,697, concluding a successful 14 well 2017 completion program. Recent initial production rates achieved are as follows: |
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Well Name |
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County |
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SEA |
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SEA Net |
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Completed |
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% Oil* |
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Peak |
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30-Day |
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60-Day |
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90-Day |
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Paloma Ranch EFS 1H |
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McMullen |
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97 |
% |
72 |
% |
8,968 |
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62 |
% |
1,299 |
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431 |
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745 |
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783 |
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Peeler Ranch EFS 15H |
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Atascosa |
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100 |
% |
75 |
% |
5,310 |
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81 |
% |
2,158 |
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1,025 |
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955 |
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NA |
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Shannon EFS 6UH |
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McMullen |
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92 |
% |
69 |
% |
6,079 |
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91 |
% |
424 |
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229 |
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211 |
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NA |
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Shannon EFS 7UH |
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McMullen |
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92 |
% |
69 |
% |
6,340 |
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88 |
% |
631 |
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214 |
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243 |
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NA |
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*Based on the longest IP period |
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The Sundance Peeler EFS 15H well has performed at or above Sundance expectations, flowing naturally. This well is expected to continue on production with a managed choke program in place until early April 2018. The Paloma Ranch EFS 1H well came on production on 24 October 2017 and has performed well. The well has produced more than 45,000 bbls to date and nearly 200 mmcf of natural gas. This well continues to perform well under a 34/64 choke.
Initial production results from the Shannon EFS 6UH and 7UH wells have been lower than anticipated. To address this, the Company is evaluating various artificial lift choices to improve ultimate recovery. Technical evaluation indicates sufficient pressure and wellbore refill to warrant the installation of artificial lift.
Also, during the fourth quarter, the borrowing base on the Companys revolving credit facility with Morgan Stanley, was reaffirmed at $67 million. In late 2017, the Company added 297,000 bbls of oil hedges with an average price of $55.97, bringing the Companys total hedged position to 2,227,060 bbls covering 2018 2020, as shown in the table below:
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Oil Derivative Contracts |
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Gas Derivative Contracts |
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Weighted Average |
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Weighted Average |
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Year |
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Units (Bbls) |
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Floor |
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Ceiling |
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Units (Mcf) |
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Floor |
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Ceiling |
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2018 |
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1,291,060 |
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$ |
50.90 |
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$ |
55.35 |
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2,106,000 |
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$ |
2.92 |
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$ |
3.24 |
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2019 |
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828,000 |
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$ |
50.56 |
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$ |
53.49 |
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1,212,000 |
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$ |
2.78 |
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$ |
3.47 |
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2020 |
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108,000 |
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$ |
47.05 |
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$ |
52.50 |
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216,000 |
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$ |
2.54 |
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$ |
2.93 |
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Total |
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2,227,060 |
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$ |
50.59 |
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$ |
54.52 |
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3,534,000 |
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$ |
2.85 |
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$ |
3.30 |
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The Company expects to release its annual Reserve Update in February and its Annual Report in late March.
For more information, please contact:
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United States |
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Australia |
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Eric McCrady, Managing Director |
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Mike Hannell, Chairman |
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Tel: +1 (303) 543 5703 |
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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 Sundances 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 Sundances periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundances 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 Companys 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 Companys 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.
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
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Name of entity |
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Sundance Energy Australia Limited |
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ABN |
Quarter ended (current quarter) |
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76 112 202 883 |
31 December 2017 |
Consolidated statement of cash flows
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Year to date |
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Current quarter |
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(12 months) |
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$US000 |
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$US000 |
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1. |
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Cash flows from operating activities |
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30,125 |
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112,606 |
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1.1 |
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Receipts from customers |
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1.2 |
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Payments for |
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(287 |
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(8,823 |
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(a) exploration & evaluation |
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(b) development |
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(7,878 |
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(95,783 |
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(c) production |
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(6,179 |
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(23,848 |
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(d) staff costs |
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(1,957 |
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(7,746 |
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(e) administration and corporate costs |
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(3,165 |
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(10,835 |
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1.3 |
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Dividends received (see note 3) |
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1.4 |
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Interest received |
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1.5 |
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Interest and other costs of finance paid |
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(1,151 |
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(13,652 |
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1.6 |
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Income taxes refunded, net |
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88 |
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3,999 |
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1.7 |
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Research and development refunds |
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1.8 |
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Other (derivatives) |
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(762 |
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(1,676 |
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1.9 |
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Net cash from / (used in) operating activities |
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8,834 |
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(45,758 |
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(1) The Company made its fourth quarter interest payment on its term loan in January 2018.
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2. |
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Cash flows from investing activities |
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2.1 |
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Payments to acquire: |
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(a) property, plant and equipment |
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(b) tenements (see item 10) |
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(c) investments |
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(d) other non-current assets |
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(84 |
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(657 |
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+ See chapter 19 for defined terms
1 September 2016
Consolidated statement of cash flows
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Year to date |
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Current quarter |
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(12 months) |
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$US000 |
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$US000 |
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2.2 |
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Proceeds from the disposal of: |
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(a) property, plant and equipment |
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(b) tenements (see item 10) |
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929 |
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15,283 |
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(c) investments |
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(d) other non-current assets |
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nil |
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19 |
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2.3 |
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Cash flows from loans to other entities |
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2.4 |
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Dividends received (see note 3) |
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2.5 |
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Other (provide details if material)(2) |
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1,000 |
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1,000 |
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2.6 |
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Net cash from / (used in) investing activities |
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1,845 |
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15,645 |
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(2) Escrow settlement from 2014 disposition.
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3. |
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Cash flows from financing activities |
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3.1 |
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Proceeds from issues of shares |
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3.2 |
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Proceeds from issue of convertible notes |
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3.3 |
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Proceeds from exercise of share options |
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3.4 |
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Transaction costs related to issues of shares, convertible notes or options |
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3.5 |
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Proceeds from borrowings |
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500 |
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250 |
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3.6 |
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Repayment of borrowings |
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3.7 |
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Transaction costs related to loans and borrowings |
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3.8 |
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Dividends paid |
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3.9 |
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Other (provide details if material) (3) |
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(11,806 |
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18,194 |
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3.10 |
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Net cash from / (used in) financing activities |
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(11,306 |
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18,444 |
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(3) The Company entered into a revenue advance agreement with its oil purchaser under which the purchaser advanced the Company $30 million in the third quarter 2017. The Company began repaying the advance in October 2017 at a rate of $20 per gross barrel of oil produced (rate changes to $25 per gross barrel beginning in January 2018 through complete repayment of revenue advance). As at 31 December 2017, the Company had repaid cash of $11.8 million.
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4. |
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Net increase / (decrease) in cash and cash equivalents for the period |
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4.1 |
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Cash and cash equivalents at beginning of period |
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6,377 |
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17,463 |
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4.2 |
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Net cash from / (used in) operating activities (item 1.9 above) |
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8,834 |
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(45,758 |
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4.3 |
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Net cash from / (used in) investing activities (item 2.6 above) |
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1,845 |
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15,645 |
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4.4 |
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Net cash from / (used in) financing activities (item 3.10 above) |
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(11,306 |
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18,444 |
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+ See chapter 19 for defined terms
1 September 2016
Consolidated statement of cash flows
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Year to date |
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Current quarter |
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(12 months) |
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$US000 |
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$US000 |
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4.5 |
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Effect of movement in exchange rates on cash held |
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11 |
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(33 |
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4.6 |
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Cash and cash equivalents at end of period |
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5,761 |
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5,761 |
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Current quarter |
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Previous quarter |
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5. |
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Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts |
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5.1 |
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Bank balances |
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5,761 |
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6,377 |
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5.2 |
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Call deposits |
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5.3 |
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Bank overdrafts |
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5.4 |
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Other (provide details) |
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5.5 |
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Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
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5,761 |
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6,377 |
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Current quarter |
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6. |
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Payments to directors of the entity and their associates |
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6.1 |
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Aggregate amount of payments to these parties included in item 1.2 |
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209 |
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6.2 |
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Aggregate amount of cash flow from loans to these parties included in item 2.3 |
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6.3 |
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Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 |
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6.1 Includes cash payments for salaries and fees paid to directors during the quarter.
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Current quarter |
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7. |
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Payments to related entities of the entity and their associates |
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7.1 |
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Aggregate amount of payments to these parties included in item 1.2 |
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NIL |
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7.2 |
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Aggregate amount of cash flow from loans to these parties included in item 2.3 |
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7.3 |
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Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 |
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+ See chapter 19 for defined terms
1 September 2016
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Total facility amount |
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Amount drawn at |
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8. |
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Financing facilities available Add notes as necessary for an understanding of the position |
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8.1 |
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Loan facilities (1) |
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192,000 |
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192,000 |
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8.2 |
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Credit standby arrangements |
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8.3 |
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Other (please specify) (2) |
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18,194 |
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18,194 |
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8.4 |
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Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. |
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(1) Morgan Stanley credit facility comprised of a $67 million revolving facility ($67 million drawn) and $125 million term loan ($125 million drawn). The interest rate on the credit facility ranged from 4.2%-8.3% for the quarter. The loans are secured by the Companys oil and gas properties. (2) The Company entered into a revenue advance agreement with its oil purchaser, under which the purchaser advanced the Company $30 million in the third quarter 2017. The Company began repaying the advance in October 2017 at a rate of $20 per gross barrel of oil produced ($25 per gross barrel beginning in January 2018 through complete repayment of revenue advance). The advance bears interest at a rate of 10%. |
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$US000 |
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9. |
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Estimated cash outflows for next quarter |
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9.1 |
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Exploration and evaluation |
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9.2 |
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Development |
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2,700 |
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9.3 |
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Production |
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6,200 |
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9.4 |
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Staff costs |
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2,000 |
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9.5 |
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Administration and corporate costs |
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4,400 |
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9.6 |
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Other (provide details if material) (1) |
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18,700 |
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9.7 |
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Total estimated cash outflows |
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34,000 |
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(1) Other includes repayment of the revenue advanced by its oil purchaser of $14.7 million, U.S. federal tax withholding payments of $2.3 million and payments of derivative settlements of $1.7 million.
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Tenement |
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Nature of interest |
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Interest at |
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Interest |
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10. |
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Changes in tenements (items 2.1(b) and 2.2(b) above) |
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10.1 |
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Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced |
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Eagle Ford |
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Non-core expirations and minor true-ups (1) |
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45,369 |
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45,250 |
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10.2 |
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Interests in mining tenements and petroleum tenements acquired or increased |
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(1) Subsequent to quarter end, the Company allowed a non-core acreage block of 9,126 acres to expire.
+ See chapter 19 for defined terms
1 September 2016
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
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Sign here: |
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Date: 31 January 2018 |
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Managing Director and Chief Executive Officer |
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Print name: Eric McCrady
Notes
1. The quarterly report provides a basis for informing the market how the entitys activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
+ See chapter 19 for defined terms
1 September 2016
MARKET RELEASE
2 February 2018
Sundance Energy Australia Limited
SUSPENSION FROM OFFICIAL QUOTATION
The securities of Sundance Energy Australia will be suspended from quotation immediately, at the request of the Company pursuant to listing rule 17.2, pending the release of an announcement regarding an announcement in relation to a potential corporate transaction and associated capital raising.
Security Code: SEA
Belinda Chiu
SENIOR ADVISER, LISTINGS COMPLIANCE
Ground Floor, 28 Greenhill Road, Wayville, South Australia 5034 ACN112 202 883
Telephone: +61 8 8363 0388 Facsimile: +61 8 8132 0766 www.sundanceenergy.com.au
Sundance Energy Australia Limited ABN 76 112 202 883
2 February 2018
Belinda Chiu
Senior Adviser, Listings Compliance
ASX Compliance Pty Ltd
20 Bridge Street
Sydney NSW 2000
Dear Belinda,
VOLUNTARY SUSPENSION FROM OFFICIAL QUOTATION
We refer to the trading halt of securities of Sundance Energy Australia Limited (ASX: SEA) (SEA) dated 30 January 2018. The Directors of Sundance Energy Australia (ASX: SEA) hereby requests a voluntary suspension from quotation pending the release of an announcement in relation to a potential corporate transaction and associated capital raising.
The Company requests that the securities remain suspended until an announcement is made to the market, which is expected no later than before the commencement of trade on Friday, 9 February 2018.
The Company is not aware of any reason why the voluntary suspension should not be granted.
Yours sincerely,
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Mike Hannell |
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Chairman |
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