FOR IMMEDIATE RELEASE
17 June 2008
General Manager
The Company Announcements Office
Australian Securities Exchange
Another Extension of US Oil and Gas Interests with Colorado
Cutthroat Prospect
Sundance Energy Australia Limited (ASX: SEA) is
pleased to announce that it has commenced a new lease acquisition program in
the hear of the Colorado Rocky Mountains to further expand and enhance its
portfolio of US oil and gas projects. The Company's new project is called the
Cutthroat Prospect.
Building upon the North Park Basin Prospect recently
announced by EOG Resources (NSE: EOG) Sundance has begun to acquire leases in
Jackson County, Colorado. EOG completed its first horizontal well in its North
Park Basin Prospect in the fourth calendar quarter of last year, the Buffalo
Ditch 1- 32H, which had initial production of 550 barrels of oil and averaged
320 Bopd in its first thirty days. EOG has completed a second well and spudded
a third in a campaign announced to include as many as seven additional wells
there this year.
Like the North Park Prospect, the primary target of
Sundance's new Cutthroat Prospect will be the oil bearing Niobrara
formation which lies approximately 7,500 feet (2,286 metres) deep in the
prospect area with a resource blanket raging up to 450 feet (137 metres) in
thickness. EOG has preliminarily estimated that there are 10,000,000 to
40,000,000 barrels in place per 640 acre spacing unit. The EOG development is
premised around well costs of US$6,000,000 and expected EURs of approximately
250Mboe per well, net.
As at this date, Sundance has leased approximately
2000 acres with approximately 1,400 of those acres pending execution subject to
title confirmation. The Company's leasing effort is ongoing. Sundance owns 100%
of the acquired leases and will be the Cutthroat Prospect's operator. Once
development commences, the Company intends to drill vertically to the Niobrara
top and then horizontally through the oil bearing formation followed by
multistage fracture stimulations.
The map below sets out the location of the Cut Throat
Prospect.
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 89485 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 is 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