US onshore oil and gas producer, Sundance Energy Australia Limited (ASX: SEA) has released its quarterly activities and cash flow report today (i.e., 1 February 2019). In the report, the company announced that it has exceeded its production guidance for FY 2018. The company has also met its production guidance for the 2018 December quarter. The Company’s full-year 2018 net production averaged around 10k Barrels of oil equivalent per day including flared volumes, at the top end of full-year net production guidance of 9k to 10k Barrels of oil equivalent per day.
During Q4 2018, the Company produced around 14k barrels of oil equivalent per day which include flared volumes, meeting fourth quarter production guidance of 14k to 15k Barrels of oil equivalent per day. As per the announcement, the cumulative net production of the company during the fourth quarter was around 1.3 million barrels of oil equivalent which included around 900k barrels of oil, 150k barrels of natural gas liquids and 1.7 million thousand cubic feet of natural gas.
In the full year 2018, the company has reported a cumulative net production of around 3.7 million barrels of oil equivalent which included around 2.3 million barrels of oil, 490k barrels of natural gas liquids and 5.7 million thousand cubic feet of natural gas.
The company’s third-party gas processing facility is experiencing increased line pressure and capacity constraints due to the higher production volumes; however, Sundance is expecting that this issue will be resolved in the first half of the year through a facility expansion.
While providing an update on the development activities of the company, the company informed that it has brought 11 gross (11 net) wells onto production during the December quarter. In full-year 2018, the company brought 23 wells online. As per the company’s announcement, the initial production results from all wells were significantly higher than the expectations.
During the December quarter, the company brought nine gross (9 net) wells to production on the acreage acquired from Pioneer and it additionally brought online two gross (two net) wells on its legacy acreage in McMullen County. During the December quarter, the company completed the drilling of two additional gross wells in Dimmit Count, and it has also finished drilling the Roy Esse pad.
For the December quarter, the company reported the net cash used in operating activities of US$45,710k, the net cash used in investing activities of US$124k and net cash from financing activities of US$44,791k. The Cash and cash equivalents for the 12 months ended 31 December 2018 was US$1,580k.
Meanwhile, in the past six months, the share price of the company decreased by 35.14 percent as on 31 January 2019. SEA’s shares traded at $0.430 (-10.417% intraday) with a market capitalization of circa $330.95 million as on 1 February 2019. It has 52 weeks high of $1.050 and 52 weeks low of $0.290.
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