Sundance Energy Australia Limited announce that on 25 February 2014 in the US it signed a Lease Acquisition and Development Agreement (LAA) for the acquisition of approximately 4,800 net mineral acres in McMullen County, Texas.

The purchase price for the acreage includes an upfront payment (US$10.0 million) and two separate earn out payments due upon commencement of drilling (US$7.7 million) and payout of the first six wells drilled on the acreage (US$7.7 million). The term of the LAA is two years and provides a one year extension for $500 per acre extended.

Tags: Sundance Energy Australia Limited