General
Manager
The Company
Announcements Office
Australian
Securities Exchange
Revenue
and Development Update
US based oil
and gas developer Sundance Energy Australia Limited (ASX: SEA) is pleased to
provide the following revenue and prospect development update.
June
'08 Revenue Up 57% Over June '07
Sundance's
Board of Directors is very pleased to announce the Company's active and
successful 2008 prospect development program is translating into significant
revenue growth. Sundance's revenue in June of this year was US $602,506
from 6 gross wells (net 2 to the Company's interests) as compared to US
$383,211 from 22 gross wells (3.6 net) during the same month one year ago,
representing a 57% increase on a year over year basis.
Of course,
this growth in revenue is even more compelling when viewed in light of the
Sundance's rapidly progressing drilling campaign, especially in its Phoenix and
South Antelope Prospects, the former of which is set to see the spud of
Sundance's first 100% owned and operated Bakken well
later this month. Across its Rocky Mountain Prospects alone (Phoenix, South
Antelope, Goliath and May Jon), in addition to the producing wells which
generated the June numbers discussed above, the Company has an additional 9
gross (3.25 net) wells in various stages of drilling, completion and/or
production. Each is discussed in greater detail below.
Development
Update
Phoenix
Prospect: Chase 21-30H Well Permitted
The Company
is very excited to announce that Patterson UTI Drilling Company Rig # 491 will
begin mobilizing this week to the Chase 21-30H,
Sundance's first 100% owned Bakken well, with an
expected spud date of 25 August.
South
Antelope Prospect
Levang 3-22H
(Sundance owns ~3.25%WI)
On 23 July, Helis Oil and Gas rigged up a well service rig to clean out
the lower lateral and install the down hole pump and rods. On 8 August,
the lateral had been cleaned out to a measured depth of 15,296 feet (4,662 metres) with a
total depth of 15,530
feet (4,733 metres). To date, the well has
cumulative production of 36,842 barrels of oil and 38,552 MCF.
Jones
4-23H (Sundance Owns ~7%WI)
On 30 July, Helis rigged up a well service unit to install the down
hole pump and rods; the job was successfully completed on 6 August. The
well is currently awaiting a pumping unit. To date, the Jones 4-23H has
produced 19,462 barrels of oil.
Jones
16-14H (Sundance Owns ~47%WI)
This well
was successfully fracture stimulated on 12 June, and will be allowed to
continue to produce up tubing in order to reduce down hole
pressures so that a down hole pump and rods can be installed. This well
has produced a total of 12,631 barrels of oil.
Peterson
15-15H (Sundance owns~7%WI)
On 1 July,
the well was fracture stimulated in three of the six intervals within the
lateral with limited success due to high frac
pressures. The well has currently produced a total of 5,072 barrels of oil and
gas at an average rate of 130 MCFPD. A well service rig is currently on
location to clean out the lateral and perforate for further fracture
stimulation.
Levang 4-28H (Sundance owns~7%WI)
This well
reached total measured depth of 15,727 feet (4,793 metres) on 1
July, and was successfully fracture stimulated on 2 August. As of 10
August, this well had produced 2,176 barrels of oil.
Levang
4-13H (Sundance Owns~49%WI)
Helis
reached a total depth of 15,622
feet (4,761 metres) on 5 August. The production
liner was successfully installed and the rig released on 8 August. This
well is scheduled for fracture stimulation later this month.
Thompson
44X-20 (Sundance Owns~1%WI)
The Thompson
44X-20 is being operated by Headington Oil, LP. Headington reached a Total Measured Depth of 21,140 feet (6,443 metres) on 3
July. The well is currently awaiting fracture stimulation.
Jack
Pennington 21-21H (Sundance Owns~1.25%WI)
Marathon Oil
Co. reached a total depth of 19,646' (5,988 metres) on
18-07-08. The well is currently awaiting fracture stimulation.
State
4-36H (Sundance Owns~50%WI)
Nabors
Rig # 558 is currently moving to this location; this well should spud shortly.
May
Jon Prospect
May
Jon 1 (Sundance owns 100%)
On 1 May,
the May Jon 1 was successfully recompleted in the Codell Formation and that formation was fracture stimulated
on 7 May. Following that, the well was swabbed back, and it produced 18 barrels
of oil with most of the frac load left to recover
prior to being shut in to allow drilling operations on the May Jon 23-5D#3 to
proceed. On 24 June, the Company successfully pulled tubing and laid down a
packer. The well was placed back on production on 11 July, and continues to
flow back the remaining frac fluid while selling
increasing volumes of oil and gas. As of 30 July, the well had produced a
total of 754 barrels of oil and 729 MCF in 28 days.
May
Jon 23-5D#3 (Sundance owns 100%)
On 18 June,
Sundance reached target depth on this well of 8,292 feet (2,527 metres) and
production casing was successfully installed. The May Jon 23-5D#3
was successfully fracture stimulated in the J sand on 30 June, and was placed
on first gas sales on 1 July. The May Jon 23-5D#3 produced an average of 825 Mcfpd and 4 Bopd over its first
10 days, with a large percentage of the frac load
left to recover. The well will be produced for several months from the J sand
before coming up hole and completing the Codell and Niobrara formations
after which all three zones will be commingled. As of 30 July, the well had
produced a total of 72 barrels of oil and 11,585 MCF.
North Washington
Prospect
Paul
1-15 (Sundance owns~7%WI)
The Paul
1-15 is a vertical test well designed to test six possible zones. On 24
June, the operator successfully reached target depth of 10,260 feet (3,127 metres).
On 25 June, 5 ? inch
production casing was successfully installed and cemented. Analysis of
mud and open hole logs identified prospective pay
zones in the Osborne (25
feet (7.6
metres)) the Hutton (44 feet (13.4 metres)) the Viola
(22 feet
(6.7 metres))
and the Mclish (6 feet (1.8 metres)). A
well servicing rig is scheduled to commence completion operations on 13 August.
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 8 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.
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
Sundance Energy Australia Limited ABN 76 112
202 883
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