Quarterly Activities and Cashflow Report

Microsoft Word - QAR - 31 Dec 2014 v6 1 29 15 FINAL

Sundance Energy Australia Limited

32 Beulah Road, Norwood. South Australia. 5067 ACN 112 202 883

Telephone: +61 8 8363 0388 Facsimile: +61 8 8132 0766 www.sundanceenergy.com.au

Activities Report for the Quarter Ended 31 December 2014

Highlights

Operating Results	Achieved exit rate production of 9,434 boe/d, above the high range of 2014 guidance of 8,000 - 9,000 boe/d. Production for the quarter increased to 8,932 Boe/d, net of royalties, an increase of 1,897 Boe/d (27 percent) compared to the immediately preceding quarter. Adjusted EBITDAX and Adjusted EBITDAX Margin increased to $36.1 million, or 82.4 percent of revenue, respectively, for the quarter ended 31 December 2014 and $122.2 million, or 76.5 percent of revenue, for the year ended 31 December 2014, a 132.4 percent increase compared to $52.6 million, or 61.6 percent of revenue for the same period in 2013. Proved PV10 increased to $531.7 million, up $272.9 million or 105 percent, and Proved Reserves increased to 26.0 mmboe, up 11.3 mmboe or 77 percent as compared to Company reserves as at 1 January 2014(1). The PV10 of 2P Reserves increased to $765.5 million, up $395.7 million or 107 percent, and 2P Reserves increased to 54.1 mmboe, up 28.7 mmboe or 113 percent as compared to Company reserves as at 1 January 2014(1). The PV10 of 3P Reserves increased to $1.5 billion, up $864.2 million or 139%, and 3P Reserves increased to 147.7 mmboe, up 79.2 mmboe or 116% as compared to Company reserves as at 1 January 2014(1).
Exploration & Development	Sundance brought 25 gross (15.0 net) horizontal wells into production during the quarter. An additional 24 gross (13.7 net) horizontal wells were in progress at quarter end, of which 11 gross (9.6 net) were Sundance-operated.
Liquidity	As at 31 December 2014, the Company had $69 million of cash on hand, with $15 million of undrawn borrowing capacity on its credit facilities. The Company has no long‐term service contracts and only 6.0 net commitment wells required in 2015, of which 2 were drilled in Q4 14, to preserve its 20,000+ net acre leasehold in Eagle Ford The Company's 2015 capital program is expected to be entirely funded by its operating cash flow. As at 31 December 2014, hedges covering 246,000 bbls in 2015 and 60,000 bbls in 2016 had a value of $9.5 million. As at 28 January 2015, the value had increased to $11.7 million.
(1) 1 January 2014 Reserves excludes 6.1 mmboe of 1P, 3.1 mmboe of probable and 15.1 mmboe of possible that were primarily attributable to acreage sold during 2014. See additional information under Notes on page 7 regarding Reserve Estimates.

All amounts shown in this report are unaudited.

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