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Sundance Energy enters trading halt ahead of capital raising

Funds raised will likely primarily be used to fund an acquisition and to pay down debt.
ASX electronic board showing stock prices
Shares in the company last traded at $0.072 before entering the trading halt

Sundance Energy Australia Ltd (ASX:SEA) was granted a trading halt by the ASX this morning as it launches a capital raising.

Industry sources suggest the company is raising up to $331 million through a two-tranche placement and fully underwritten 1:1 rights issue priced at $0.059.

Proceeds are said to be funding an acquisition and recapitalising the company.

US shale assets being acquired

Last month Sundance confirmed it was in discussions with various parties in connection with a material acquisition of US shale assets and associated funding.

Sources suggest Sundance is acquiring 21,900 net acres, and 1,700 barrels of oil equivalent per day of current production for US$221 million.

An independent energy explorer focused in Eagle Ford

Sundance Energy is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary located in the US state of Colorado.

The company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America.

Current activities are focused in the Eagle Ford region of Texas.

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