CALGARY, ALBERTA–(Marketwired – Nov. 14, 2013) – Sundance Energy Corporation (TSX VENTURE:SNY)(OTCQX:SNYXF) (“Sundance” or the “Corporation”) hereby provides an update on the Corporation’s activities in its Core Project Areas:
OCHAPOWACE AREA, S.E. SASKATCHEWAN
Sundance has entered into an agreement with an industry third party whereby the third party will pay 100% of the costs to drill, test, core, case, complete and equip or abandon a Test Well located in LSD 16 of Section 32 in Township 17, Range 3 W2M (the “16-32 Test Well”). The 16-32 Test Well will commence drilling before the end of November 2013 and will be drilled to a depth of approximately 1,250 meters subsurface and will test and evaluate the Jurassic Sands, the Bakken, Lodgepole and Birdbear formations. Cores will be cut and taken in the Bakken and Lodgepole formations. Depending on the results of the log and core interpretations seven inch (7″) casing may be run from surface down to 30 or 40 meters into the Birdbear formation. The 7″ casing will facilitate potential future horizontal well development drilling operations from the 16-32 Test Well location. The 16-32 Test Well is located 10 meters structurally updip from Sundance’s original 6-5 Test Well and on a 3D seismic interpreted approximate 2,200 acre closed structure. The Sundance 6-5 Test Well initially swabbed a 10% oil cut from the Bakken formation before going to water. The 6-5 Test Well is currently standing cased and suspended.
Sundance will retain a 45% interest in the 16-32 Test Well and surrounding lands. Sundance is the Operator of the 16-32 Test Well and approximately 40,000 acres in the Ochapowace Project Area.
LASHBURN AREA, S.W. SASKATCHEWAN
Sundance has obtained a surface lease on a location in LSD 14 of Section 19 in Township 47, Range 25 W3M (the 14-19 Well”). It is intended that the 14-19 Well will be drilled on or before March 31, 2014. If drilled the 14-19 Well will be classified as a development well and will be drilled to a total depth of approximately 550 meters subsurface to test and evaluate the oil production potential of the Sparky formation. The 14-19 Well and the balance of the Corporation’s lands lie entirely within the designated boundaries of the Lashburn West Sparky Oilfield. The Lashburn West Sparky Oilfield is located in west central Saskatchewan. The oilfield was first discovered in 1979 and is currently comprised of 505 oil wells. The API gravity of the Sparky formation oil is 11.3 degrees and the average primary production per well is 60,000 barrels. If the 14-19 Well is successfully completed for Sparky oil production there are potentially 2 to 6 additional development drilling locations on Sundance lands.
Sundance has a 100% interest and is the Operator of the 14-19 Well and 320 acres in the Lashburn Project Lands.
ALEXANDER AREA, CENTAL ALBERTA
Sundance is currently in the process of re-interpreting its geological and geophysical data on its Alexander Project Lands. Sundance owns a proprietary interest in 9 square miles of 3D seismic data and a licensed copy of an additional 3 square miles of 3D data on its lands. The new review is necessary because new information has now become publicly available. Offsetting well logs and production information from those wells have been recently released from Confidential Status. This new data and information when integrated into Sundance’s geology, 3D seismic and well information should provide numerous prospective drilling locations on the Sundance Alexander Project Area Lands. Geological formations that produce hydrocarbons in the general Alexander Area are the Basal Quartz, Ostracod, Alexander Sand, Detrital and Wabamun.
Sundance has a 50% interest and is the Operator of approximately 17,280 acres in the Alexander Project Area.
As previously described in a news release dated October 1, 2013 the Corporation completed a non-brokered private placement offering of 10% secured subordinated convertible debentures in the principle amount of $500,000. Potential future activities on the Ochapowace, Lashburn and Alexander Project Areas will depend on either the Corporation’s ability to successfully raise long term financing or continue to joint venture the proposed operations with industry parties.
Sundance Energy Corporation is a publicly traded junior oil and gas exploration company whose shares trade on the TSX Venture Exchange under the trading symbols “SNY”. Sundance focuses its exploration activities exclusively on First Nation Lands located in Western Canada.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding Sundance’s business, such as anticipated oil production, which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Sundance’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Sundance believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Sundance does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
President and Chief Executive Officer