Sundance Energy Begins Equipping & Tie-in of Central Alberta Alexander Light Oil Well
Calgary, Alberta Canada – June 6, 2012 - Sundance Energy Corporation (“Sundance” or the “Corporation”) (“SNY” TSX-V) (“SNYXF” OTCQX) is pleased to announce that it has begun the equipping and tie-in of the well drilled on its jointly held (50% working interest) Alexander First Nations Permit in Central Alberta (the “Alexander Permit”), which is comprised of 17,280 gross contiguous acres (27 sections). Sundance is the operator of the Alexander Permit.
As reported on April 2, 2012, the Sundance ALEX 16-11-56-27 W4M well (“16-11 well”) was drilled vertically to a depth of 1,306 meters and encountered sweet, light oil in both the Alexander and Detrital sands within the Lower Mannville Group. Both zones were individually stimulated and swabbed and the majority of the load fluid was recovered prior to production testing. The Alexander sand swabbed 7.6 bbl/hr of oil and the Detrital sand swabbed 2.7 bbl/hour of oil for 10 hours. The final swab rates for the combined zones totaled 10.3 bbl/hr of oil (247 barrels of oil per day). Although initial productive test rates may not be indicative of long-term performance and ultimate reserve recovery, Sundance is very excited to confirm light oil production from both of the targeted formations that produce oil commercially on adjacent lands.
Sundance anticipates that the 16-11 well will be on production within 21 days and initial production information will be reported shortly thereafter.
In addition, Sundance and its partner have now completed a 9 square mile 3-D seismic program covering the north-east portion of the Alexander Permit. The seismic work has been reprocessed and additional seismic data is being acquired and integrated with the data from the recent seismic program. Upon completion of the integration of the newly obtained seismic data Sundance and its partner will commence a multi-well step-out drilling program on the Alexander Permit, which is expected to commence later this summer and to consist of at least 4 initial step-out drilling locations from the 16-11 well.
Lashburn Farm-Out Update
Sundance is also pleased to announce that the first well has been spud on its Lashburn lease in Saskatchewan. As was announced on January 19, 2012, Sundance has farmed out its interest in the Lashburn lease to a private oil and gas operator that is currently active in the Lashburn area. The Lashburn lease lies within the boundaries of the Lashburn West Sparky Oilfield located in Western Saskatchewan.
Under the terms of the Farmin Agreement Sundance’s farmin partner will drill four development wells on Sundance’s Lashburn lease. Sundance’s farmin partner will pay 100% to earn 60% on the four development wells. Sundance will be carried at no cost through the drilling, testing, completion and equipping, including the tanks, in all four development wells, and will retain a 40% interest in these wells. Sundance’s farmin partner is required to drill all four development wells prior to August 31, 2012. If Sundance’s farmin partner does not meet its drilling commitments then all rights to the Lashburn lease revert back to Sundance.
Upon Sundance’s farmin partner meeting its drilling commitments Sundance will retain a 50% participation interest in the balance of the Lashburn lease that may see as many as four additional wells drilled prior to the end of 2012.
Sundance Energy Corporation is a junior publicly traded oil and gas company whose primary focus is exploring First Nation Lands in Western Canada. Sundance trades in Canada on the TSX Venture Exchange under the trading symbol “SNY” and on the OTCQX in the U.S.A. under the trading symbol “SNYXF”.
For further information:
Jeffrey Standen, President / CEO