https://www.engineeringnews.co.za

Sundance Energy to buy NSE’s US and Australia assets

29th June 2015

By: Ilan Solomons

Creamer Media Staff Writer

  

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX-listed energy explorer Sundance Energy announced on Monday that it had entered into an agreement to buy A$24-million worth of assets from oil and gas explorer New Standard Energy (NSE) in the US and South Australia.

The agreement was subject to approval by NSE’s shareholders and other customary conditions precedent including due diligence.

Sundance would directly acquire NSE’s Colorado county and its Atacosa oil and gas projects in the US, as well as an interest in the Cooper basin shale gas project, in South Australia, through the purchase of NSE’s relevant subsidiaries.

The 5 500 acre Atacosa project included seven producing wells, with net production of about 175 bbl/d of oil equivalent and two wells that have been drilled, but not completed.

The 2 400 km2 Cooper basin PEL 570 licence permit consisted of five parts; two in the core of the Patchawarra trough and three located north of the Patchawarra trough.

NSE said it would seek shareholder approval for the transaction at a meeting to be held in late July this year. The company’s board members have agreed to vote their shareholdings in favour of the transaction.

Agreement has also been reached with Switzerland-based multinational financial services company Credit Suisse to continue funding the company, to the extent required, through to the completion of the transaction.

NSE chairperson Arthur Dixon said the company’s growth plans and focus on the US had “clearly” been impacted by the speed and intensity of the collapse in global oil prices.

“The board recognised the significance of the changed commercial environment and late in 2014 initiated an extensive and intense process to seek and evaluate corporate transactions, joint ventures and asset sales or swaps for all NSE assets,” he stated.

Dixon added that concurrently, NSE “slashed” its corporate costs and sought out corporate and asset opportunities. This he said would enable the company to completely “unwind” its debt position and future liabilities, while providing some capital to sustain NSE and retain its remaining asset portfolio.

“This transaction with Sundance best meets those objectives,” said Nixon.

He further stated that upon completion of the transaction, NSE intended to continue its ongoing discussions with “other parties” to seek funding and a suitable partner for the company in its strategy to unlock the potential value in the onshore Canning and Carnarvon basins, through its Southern Canning, Laurel and Merlinleigh projects.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Magazine video image
Magazine round up | 29 March 2024
Updated 5 hours ago

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.068 0.113s - 156pq - 2rq
Subscribe Now