ABN 76 112 202 883
CONTENTS PageDIRECTORS' REPORT 1
AUDITOR'S INDEPENDENCE DECLARATION 6
CONDENSED CONSOLIDATED STATEMENT OF LOSS AND OTHER COMPREHENSIVE LOSS 7
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 8
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 9
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 10
SELECTED EXPLANATORY NOTES TO THE FINANCIAL
STATEMENTS 11
DIRECTORS' DECLARATION 21
INDEPENDENT AUDITOR'S REVIEW REPORT 22
CORPORATE DIRECTORY 24
Your Directors submit the financial report of Sundance Energy Australia Limited (the "Company" or "the consolidated group") for the half‐year ended 30 June 2017.
Directors
The names of each person who has been a Director during the half‐year and to the date of this report are: Michael D. Hannell - Non‐Executive Chairman
Eric P. McCrady - Managing Director and CEO Damien A. Hannes - Non‐Executive Director Neville W. Martin - Non-Executive Director Weldon Holcombe - Non‐Executive Director
Company Secretary
Damien Connor has been the Company Secretary during the half‐year and to the date of this report.
Review of Operations
Revenues and Production. The following table provides the components of our revenues for the six months ended 30 June 2017 and 2016, as well as each period's respective sales volumes: Six months ended30 June | Change | Change |
2017 2016 | in $ | as % |
Oil sales…………………………………………………………………..……… | $37,505 | $21,021 $ 16,484 | 78.4 |
Natural gas sales………………………………………………………….. | 4,152 | 1,427 2,725 | 191.0 |
Natural gas liquids (NGL) sales……………………………………. | 2,803 | 1,768 1,035 | 58.5 |
Product revenue…….………………………………………………………. | $44,460 | $24,216 $ 20,244 | 83.6 |
30 June Change in Change
Net sales volumes: 2017 2016 Volume as %
Oil (Bbls)….…………………………………………………………..………….. | 772,381 601,222 171,159 | 28.5 |
Natural gas (Mcf)…………………………………………………………. | 1,661,993 1,102,870 559,123 | 50.7 |
NGL (Bbls)………………………………………………………………….……. | 151,288 156,501 (5,213) | (3.3) |
Oil equivalent (Boe)……………………………………………………… | 1,200,668 941,534 259,134 | 27.5 |
Financial Report
Half-year ended 30 June 2017
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The Eagle Ford contributed 6,203 Boe/d (93.5%) of total sales volume during the six months ended 30 June 2017 compared to 4,467 Boe/d (86.4%) during the same period in prior year (a 38.9% increase). Mississippian/Woodford contributed 431 Boe/d (6.5%) of total sales volume during the six months ended 30 June 2017 compared to 706 Boe/d (13.6%) during the same period in prior year (a 40.0% decrease). The Company closed on its sale of its Mississippian/Woodford assets on 7 May 2017.
Our sales volume is oil‐weighted, with oil representing 64% of total sales volume for the six‐months ended 30 June 2017 and 2016.
Oil sales. Oil sales increased by $16.5 million (78.4%) to $37.5 million for the six‐months ended 30 June 2017 from $21.0. million for the same period in prior year. The increase in oil revenues was the result of higher oil production volumes ($8.3 million), combined with higher product pricing ($8.2 million). Oil production volumes increased 171,159 Bbls (28.5%) to 772,381 Bbls for the six months ended 30 June 2017 compared to 601,222 Bbls for the same period in prior year. The average realised price on the sale of oil increased by 38.9% to $48.56 per Bbl for the six months ended 30 June 2017 from $34.96 per Bbl for the same period in prior year. Natural gas sales. Natural gas sales increased by $2.7 million (191%) to $4.2 million for the six months ended 30 June 2017 from $1.4 million for the same period in prior year. The increase in natural gas revenues was the result of increased production volumes ($1.4 million) as well as higher product pricing ($1.3 million). Natural gas production volumes increased 559,123 Mcf (50.7%) to 1,661,993 Mcf for the six months ended 30 June 2017 compared to 1,102,870 Mcf for the same period in prior year. The average realised price on the sale of natural gas increased by 93.1% to $2.50 per Mcf for the six months ended 30 June 2017 from $1.29 per Mcf for the same period in prior year. NGL sales. NGL sales increased by $1.0 million (58.5%) to $2.8 million for the six months ended 30 June 2017 from $1.8 million for the same period in prior year. The increase in NGL revenues was the result of higher product pricing ($1.1 million), partially offset by lower production volumes ($0.1 million). NGL production volumes decreased 5,213 Bbls (3.3%) to 151,288 Bbls for the six months ended 30 June 2017 compared to 156,501 Bbls for the same period in prior year. The average realised price on the sale of NGL increased by 64.0% to $18.52 per Bbl for the six months ended 30 June 2017 from $11.30 per Bbl for the same period in prior year.Six months ended 30 June
Selected per Boe metrics | 2017 | 2016 | Change | Percent |
Total oil, natural gas and NGL revenue (Boe)................... | $ 37.03 | $ 25.72 | $ 11.31 | 44.0 |
Lease operating expense ("LOE") (1).................................. | (6.27) | (5.35) | (0.92) | (17.2) |
Workover expense (1)..………………………………………………….. | (2.42) | (0.35) | (2.07) | (591.4) |
Production tax expense ................................................... | (2.37) | (1.83) | (0.54) | (29.5) |
Depreciation and amortisation expense .......................... | (23.67) | (20.02) | (3.65) | (18.2) |
General and administrative expense ("G&A").................. | (7.51) | (6.07) | (1.44) | (23.7) |
Total operating costs ....................................................... | $ (42.24) | $ (33.62) | $ (8.62) | (25.6) |
Net operating revenue (costs) ......................................... | $ (5.21) | $ (7.90) | $ 2.69 | 34.1 |
(1) Lease operating expense and workover expense are included together in lease operating expense on the condensed consolidated statement of loss and other comprehensive loss.
Lease operating expenses. LOE increased by $2.5 million (49.4%) to $7.5 million for the six‐months ended 30 June 2017 from $5.0 million for the same period in prior year and increased $0.92 per Boe (17.2%) to $6.27 per Boe from $5.35 per Boe. The increase in LOE was primarily driven by changes to certain field operational practices designed to maximize production. Workover expense. Workover expenses increased by $2.6 million (780.0%) to $2.9 million for the six months ended 30 June 2017 from $0.3 million for the same period in prior year. Workover expense in 2017 was primarily related to pump replacements and tubing repairs to maximize production.Financial Report
Half-year ended 30 June 2017
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Sundance Energy Australia Limited published this content on 12 September 2017 and is solely responsible for the information contained herein.
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