FOR IMMEDIATE RELEASE

General Manager

The Company Announcements Office

Australian Securities Exchange

Company and Development Update

US based oil and gas developer Sundance Energy Australia Limited (ASX: SEA) provides the following Company and development update.

2009 Company Development Strategy

The Board of Sundance remains focussed on measured growth but, given the continuing uncertainties in the commodity and broader markets, the Company has adopted a development strategy which reflects the current market realities and positions it to continue to take advantage of prospective opportunities. In these circumstances, all appropriate strategies are being considered, and a program is being implemented which provides a high degree of flexibility; Sundance is taking a dynamic strategic approach, availing itself of as many reasonable options as possible.

In light of these general considerations, Sundance's Board recently directed management to:

. cut administrative and other costs where appropriate;

. continue its efforts to narrow current developmental activities and to husband current revenue in order to extend its capital reserves;

. expand and specify its consideration of capital generating strategies including asset monetization, private capital infusions, and production credit opportunities;

. advance discussions with possible partners to narrow its exposure on near term development of current assets through farm outs or other joint venture type arrangements (e.g. on the Phoenix Prospect);

. proactively explore opportunities to acquire complementary oil and/or gas assets which may become available at unusually low multiples in the current markets; and,

. explore M&A and other business model conversion opportunities.

Sundance will, in the first instance, take all available steps to preserve its cash in hand while carefully husbanding its revenue stream. In order to supplement its cash position, the Company is also working to monetize certain non-core capital assets on a prioritized basis by selling the least meaningful long term assets first such as unneeded tubulars and/or undeveloped leases. The Company is also currently engaging in discussions with possible joint venturers in order to narrow its risk exposure on the near term development of its core assets. At the same time, Sundance is actively engaged in discussions to assess opportunities to grow its capital foundation through strategic asset acquisitions, possible M&A transactions and other possible capital generating opportunities.

The key to Sundance's 2009 strategy in light of the current, continuing market instability is, first, to stay strong through careful cash management and asset disposition, and, second, to ensure that as many viable options as possible are available so that the Company is in a position to respond quickly when opportunity arises.

Comments on the Company's Financial Report for the Half-Year Ended 31 December 2008

As is set out in detail in Sundance's Financial Report for the Half-Year Ended 31 December 2008, on page 4, the Company's cash position as at 31 December was approximately AU$14.5 million in addition to approximately AU$6.3 million in current assets which include trade receivables, inventory and other assets, including those held for resale.

Sundance also reports current liabilities of approximately AU$14.3 million which are comprised primarily of unexpectedly high year end drilling expenses, which (as was reported in its most recent Quarterly Activities Report) were the result of severe shortages of necessary materials (i.e. tubulars and frac sand) and some operational difficulties encountered in the final few wells drilled in North Dakota at year end, all in combination with a collapse of worldwide oil prices. In addition, the Company will shortly, pursuant to a recent arbitration award, make a onetime final payment to Antero Resources Corporation of US$675,000 arising from revenue and other post closing costs associated with the sale of the Ashland Prospect in December of 2007; the Company has budgeted an additional US$754,500 for legal and other related expenses, all of which is included in the AU$14.3 million of current liabilities.

However, while the Company's cash position will narrow significantly over the current Financial Quarter, Sundance remains in a relatively strong financial position.

The Company owns a very strong suite of assets, carries no secured or other long term debt and enjoys the benefit of an ongoing revenue stream from its producing assets. In addition, it is led by a well seasoned management team familiar with the vagaries of the oil and gas markets and is, therefore, well positioned to take advantage of the many opportunities now available to build strong and growth orientated strategic mineral positions.

Although times are hard, Sundance remains most optimistic about its future outlook.

Development Update

The following provides a brief update concerning certain ongoing development activities.

Goliath Prospect

Viall 30-1 (Sundance Owns ~ 3%)

Eagle Well Service Rig #38 is set to test the Viall 30-1.The Winnipeg Formation was tested from 14,236 feet (4,339 metres) to 14,274 feet (4,350 metres). No commercial production was encountered. A plug was set and the Red River Formation was tested from 13,572 feet (4,136 metres) to 13,578 feet (4,138 metres), 13,518 feet (4,120 metres) to 13,520 feet (4,121 metres), with minor shows of gas. Plugs were set and the interval of 13,505 feet (4,116 metres) to 13,511 feet (4,118 metres) was tested. The well tested 1.45 mmcfpd with 27 barrels of condensate a day from this interval of the Red River Formation, and is now shut in waiting on a pipe line. Once the pipe line is installed, two additional zones in the Stonewall formation will also be tested.

North Washington Prospect

Paul 1-15H (Sundance Owns ~7%)

On 27 January, the operator successfully fracture stimulated the Viola, Hunton, and Osborn formations. On 3 February, tubing and pump and rods were installed and the well was placed on pump with 14,117 barrels of frac fluid to recover. As of 5 March, the oil cut had increased to 33% with the well averaging 51 barrels of oil and 95 barrels of water and ~ 90 Mcfpd over the proceeding 10 days. As of this date the well has produced 4,472 barrels of frac water with 10,902 barrels left to recover.

Manitou Prospect

Cottonwood 1-22H (Sundance Owns ~6.25%)

This horizontal Bakken test is the first well the company has participated in within the Manitou Prospect. On 19 January, 2009 EOG spudded the Cottonwood 1-22H well. EOG is the largest Producer in the state of North Dakota primarily driven by its production from the Parshall field area, located directly south east of the Manitou Prospect. As at this date, the well has reached total depth and a 5 ?" liner has been run to total depth. EOG does not plan on fracture stimulating this well until July 2009.

For further advice on this release, please contact:

Kip Hunter                                                                          Warrick Hazeldine

General Counsel/                                                            Purple Communications

Director of Communications                                      Investor Relations

US based                                                                             Tel: +61 (08) 9485 1254

Tel: (303-543-5709)

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.

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