The placement of 47 million fully paid ordinary shares at 30c each was made to institutional and high net worth investors to primarily fund new drilling programs in North Dakota and Indiana.
Euroz Securities acted as lead manager for the placement, which takes to 151 million Sundance’s fully paid ordinary shares on issue.
The fresh capital raising comes less than a month after Sundance Energy added its first oil production in the United States to its current gas output there, through a $US1.2 million ($A1.6 million) acquisition of 100% interest in the Calf Woman-1 well and adjacent acreage in North Dakota.
The company is in production from 10 gas wells in Oklahoma. It has other gas and oil exploration projects in Montana, North Dakota, Indiana and in Australia’s Cooper/Eromanga Basin.
The Adelaide-headquartered explorer says it is expecting to rapidly add to its oil production profile with the current drilling of a trilateral horizontal oil well in the Goliath Prospect.
In August, Sundance secured a $50 million credit facility with Macquarie Bank.
Funds raised in Friday’s placement will be used to advance the drilling program in the Goliath and Phoenix Prospects in the Williston Basin, North Dakota.
It will also fund an upcoming drilling program for the Buffalo Creek, Whiskey Run and Chrisney Prospects in the Indiana shale gas acreage.
Bridging finance incurred in relation to the Goliath Prospect will also be retired. Additional acreage will be acquired and funds applied for additional working capital.
