Sundance Energy announced that it has signed a Lease Acquisition and Development Agreement (LAA) to acquire 4,800 net acres in the Eagle Ford shale play for a total purchase price of $25.4 million. The LAA extends for two years, and allows for a one-year extension for a price of $500 per acre extended.
The acquired acreage lies in McMullen County, Texas, and is a contiguous block adjacent to Sundance's current acreage in the county. The company is currently running a two-rig horizontal drilling program in its McMullen County project, where it already holds approximately 8,300 acres. Sundance estimated that the project holds 160 gross possible drilling locations.
2014 Eagle Ford transactions:
- Lonestar Buys Eagle Ford Assets for $71.3 Million
- Baytex Acquires Aurora Oil & Gas for $2.35 Billion
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.