Activities Update
Sundance to Participate in Bakken/Three
Forks Test Well
The Board of Directors of US based oil and gas
developer Sundance Energy Australia Limited (ASX: SEA) is pleased to provide
the following Activities Update.
Sundance, along with its
partner American Oil and Gas, Inc. (AMEX: AEZ) has entered into a Participation
Agreement at its Williams County, North Dakota Goliath Bakken
project with a leading industry partner; this Participation Agreement
supplants that which the Company entered into with RTA in 2008 (see the Company?s ASX Release dated 10 October 2008).
The industry partner has
extensive experience in Bakken and Three Forks
drilling and completion activities. Pursuant to the agreement, this partner
will have the opportunity to earn 25% of Sundance?s and American?s working
interest in approximately half of the 60,000 net acres at Goliath by funding
100% of Sundance's and American?s interests in a one
well drill-to-earn arrangement. Sundance will be carried for and will
retain 30% (~1.35%) of its original interest (~4.5%) in the well and the drill
site spacing unit. Sundance will also be paid up to an additional $57,000
as part of the agreement.
The drilling location has been
prepared for the Tong Trust 1-20H earning well, located in Sections 17 and 20 of T157N-R96W, Williams County, North Dakota and drilling
is expected to commence before year-end.
The Tong Trust
earning well is spaced on 1,280 acres and is designed for an approximate 9,000
foot (2,743 metre) horizontal lateral to be drilled
in the Bakken formation. Completion is expected
to include fracture stimulation with up to 24 stages. The industry partner
will conduct the drilling and completion operations on the Tong Trust earning
well; American retains the right to operate all future wells in the
project.
Jayme McCoy, Sundance?s
Managing Director, commented: ?Recent advancements in drilling and completion
techniques that have resulted in successful Bakken
and Three
Forks wells by other operators in this area of North
Dakota will be incorporated into our upcoming program. Primary
among these advancements is the application of increased number of frac stages which has shown significant improvements in
well performance across the basin. While our interest is small in this well, it
is an important step in proving up the Bakken/Three
Forks in the Goliath Prospect and should set the groundwork for a significant
increase in activity in this prospect in the New Year. We are also excited to
be joined in this project by one of the industry?s
leaders.?
For further advice on this release, please contact:
United
States
Jayme
McCoy
Managing
Director
Tel:
(303-543-5707)
Kip Hunter
General
Counsel/
Director of
Communications
Tel:
(303-543-5709)
Australia
Mike Hannell
Chairman
Tel: (+61 8 8363 0388)
Warrick Hazeldine
Purple
Communications
Investor Relations
Tel: (+61 8 6314 6300)
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 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au