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
FOR IMMEDIATE RELEASE
General Manager
The Company Announcements Office
Australian Securities Exchange
2008 Development Campaign Update
US based oil and gas developer Sundance Energy Australia Limited (ASX:
SEA)
is
pleased to provide the following update on its South Antelope, Phoenix, May Jon and North
Washington Prospect development programs. As has been previously set
forth, for the purposes of clarification, the Company??s North Dakota Bakken
project with Helis Oil & Gas Company (??Helis??) will hence forth be referred to as
the South Antelope Prospect, while its internally operated drilling program
immediately adjacent to the Helis AMI will continue to be called the Phoenix
Prospect.
South
Antelope Prospect
The Company??s South Antelope Prospect development campaign is
anticipated to include as many as 10 wells in 2008; and, Sundance now has
initial production from two wells there, the Levang 3-22H and the Jones 4-23H,
has a new fracture stimulation date set for a third, the Jones16-14H, an
initial fracture stimulation date set for its fourth, the Peterson 15-15H, and
is set to spud its fifth well in the prospect, the Levang 4-28H, later this
week. Further details on each are set forth below.
Levang 3-22H
On 26 February, work was completed co-mingling the Levang??s two
laterals, and the well was placed on production flowing up 2 ?? inch tubing. Since then, the Levang has had cumulative production of
30,449 barrels of oil flowing up the tubing. Over the last seven days, the
Levang has produced an average of 166 Bopd. The operator has set a pumping unit
and is preparing to install production rods after which this well will be put
into full production. Sundance owns 3.28% of the Levang.
Jones 4-23H
Since being fracture stimulated on 18 April, the Jones has had
cumulative production of 12,310 barrels of oil and 10,389 Mcf of gas, flowing
up 7 inch
casing. The Jones 4-23H averaged 177 Bopd in the last seven days. As of this
date, 23% of the frac load had been recovered with 14,984 barrels left to
recover.
Jones 4-23H contd.
This well will be produced to a point at which the pressures are drawn
down sufficiently to clean out the sand from the lateral and install production
tubing. The well will then be produced up tubing to lower bottom hole pressure,
after which it will be placed on pump for full production. Sundance owns 45% of
this well.
Jones 16-14H
Helis spudded the South Antelope 2008 program??s second well, the Jones
16-14H, on 4 April, and successfully reached its target of 15,489 feet (4721 metres) total
measured depth on 27 April. On 30 April, 4 ?? inch liner was successfully run
with swell packers and Delta Stim sleeves. The operator attempted to fracture
stimulate this well on 24 and 25 May, but was only able to pump 2,300 barrels
of slick water and cross link gel before determining that it could not
establish the desired frac rate down the 7 inch casing. A workover rig is currently
moving onto the location in order to run a 4 ?? frac string, and the well is
now scheduled to be fracced on 9 June. Even though no sand was pumped during
the initial frac attempt, the Jones 16-14H has made 349 barrels of oil in the 5
days of flowing back since the attempted frac. Sundance owns 47% of the Jones
16-14H.
Peterson 15-15H
This well reached its target depth of 15,780 feet TMD (4,810 metres) on 30
May. On 1 June, 4 ?? inch production liner with swell packers and Delta Stim
sleeves was successfully run. This well is scheduled to be fracture stimulated
on 21 June. The Company owns approximately 7% of the Peterson 15-15H.
Levang 4-28H
The operator has mobilized the rig to the site, and this well is set to
spud later this week..
Sundance owns approximately 7% of the Levang 4-28H.
Levang 4-13H
Preparations are being made to spud this well immediately following completion
of the Levang 4-28H. Sundance will own approximately 49% of the Levang 4-13H.
Phoenix Prospect
Although permitting on the American Indian reservation within which this
prospect is located has proven far more difficult than originally anticipated,
the Company is optimistic that its first 100% owned Bakken well, the Chase
21-30H, will be permitted and location construction begun before the end of
this month.
North Washington Prospect
As was reported on 17 April, the Company had reached agreement with Deka
Exploration, Inc., to participate for approximately 6-7% in this new prospect
located in McClain County, Oklahoma, and was
anticipating that the first well would spud there before the end of the current
quarter. And, on 10 May, Deka spudded the Paul 1-15, a vertical test well
designed to test six possible productive zones on its way to the Oil Creek
formation. As of this date, the well is drilling ahead at 8,822 feet (2,689 metres) with a
total estimated target depth of 9720 feet (2,962 metres). The well
has encountered good oil shows in the Osborne Sand and the Upper and Lower
Hutton Limestones, which are secondary targets within the prospect.
May
Jon Prospect
As it reported on 23 April, the Company had entered into an agreement to
recomplete an existing well in an established Wattenberg field located in Colorado??s DJ Basin, in
order to earn the right to drill up to four additional 100% owned wells there. On
1 May, the May Jon 1 (100% working interest) was successfully recompleted in
the Codell Formation and that formation was fracture stimulated on 7 May. Since
then, the well has been swabbed back, and the swabbing rig was released on 2
June on which date the well produced 18 barrels of oil with most of the frac
load left to recover. The well will be shut in while drilling operations on the
May Jon 23-5D #3 proceed.
The Company has begun construction of the location for the May Jon 23-5D
#3 in preparation for the drilling rig??s arrival which is scheduled for 6
June.
For further advice on this release, please contact:
Kip Hunter
General Counsel/Director of Communications
US based
Tel: (303-543-5709)
Warrick Hazeldine
Purple Communications
Investor Relations
Tel: (+61 8 9485 1254)
About Sundance Energy Australia Limited
Sundance Energy Australia Ltd (ASX: SEA) is an Adelaide-based,
independent energy exploration Company, with a wholly owned US
subsidiary, Sundance Energy, Inc., located in Colorado, USA. The Company I
developing projects in the US
and Australia.
In the US,
Sundance is primarily focused on large, repeatable resource plays where it
develops and produces oil and natural gas reserves from unconventional
formations. A comprehensive overview of the Company can be found on the
Company??s website at www.sundanceenergy.com.au.
***
Issued by
Purple
Communications
Level 3, 28 Kings Park Road, WEST
PERTH
WA 6005
Ph: 08 9485
1254 Fax: 08 6263 0455
purple@purplecom.com.au