Sundance Energy (ASX:SEA) have executed another value accretive asset deal

Sundance Energy (ASX:SEA) have executed another value accretive asset deal. Australian listed US Shale oil & gas company Sundance Energy has achieved an excellent asset trade by selling its 5,500 net acres in the Colorado's DJ Basin for US$116M, while paying US$33M for 5,500 net Eagle Ford acres in Texas. Despite selling about 1,000boepd of DJ Basin production, the company's annual guidance of 6,700-7,500boepd has not changed, so the company effectively anticipates a stronger second half. The stronger funding position and an improved focus represent the key positives for us. Additionally Sundance has an option to acquire the remaining 40% of the Eagle Ford asset for $45-55m. Management are very good asset buyers and sellers and history would indicate you would want to back them doing more of the same. The Eagle Ford region is proving to be the most valuable play in the US shale game.


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