CALGARY, ALBERTA--(Marketwire - Nov. 16, 2011) - Sundance Energy Corporation ("Sundance" or the "Corporation") (TSX VENTURE:SNY)(OTCQX:SNYXF) announces that it has entered into a three year petroleum and natural gas lease agreement with Indian Oil and Gas Canada on 320 gross and net acres lying within the defined boundaries of the Lashburn West Sparky oilfield (the "Lashburn Lands"). The Lashburn Lands are part of the Moosomin First Nation Treaty Entitlement Reserve lands. The lease agreement provides that Sundance will drill a minimum of one test well to a contract depth of 550 meters subsurface or 5 meters into the GP Formation, whichever is the lesser depth, in the first year of the lease term and a minimum of one additional test well per year thereafter during the primary term of the lease. Due to the close proximity to producing oil wells the test wells will be classified as development wells.
The Lashburn West Sparky oilfield is located in west central Saskatchewan. The field was discovered in 1979 and currently is comprised of 505 oil wells. The API gravity of the oil in the field is 11.3 degrees and the average primary oil production per well is approximately 60,000 barrels.
Sundance further announces that the Redford/Cathkin re-entry well resulted in the confirmation of a 14 meter oil pay thickness in the McLaren Formation. The permeability of the formation was up to 9 darcies, with porosity of up to 37%. Oil saturation from core analysis was between 60% and 70% and the gravity of the oil was 7 degree API. As a result of the low gravity of the oil, Sundance is currently evaluating the economics of conducting a SAGD heavy oil project on its Redford/ Cathkin lands. The capital expenditure on this re-entry well was minimal and has provided valuable data to Sundance regarding the potential development of the project in the future. The Redford/Cathkin project was one of the three properties owned by Sentinel Rock Oil Inc. ("Sentinel") which was the company that Sundance combined with in a reverse takeover in April 2011. The other two properties owned by Sentinel were the Hoole Property, which Sundance has put up for sale through the services of Sayer Energy Advisors, and which has a bid expiry date of December 1, 2011 and the Poundmaker Property, which Sundance has farmed out to an industry partner. (See News Release dated October 31, 2011.)
Jeff Standen, President and Chief Executive Officer of Sundance, comments: "Our Lashburn acquisition which is part of the Moosomin First Nation Treaty Entitlement Reserve lands is consistent with our operational focus of exploring for petroleum and natural gas on First Nation Lands in Western Canada. We are pleased to have been able to increase our land inventory with such a strategically placed First Nation Property."
About Sundance Energy Corporation
Sundance Energy Corporation trades in Canada on the TSX Venture Exchange under the symbol "SNY" and in the United States on the OTCQX under the symbol "SNYXF". Sundance Energy's primary focus is exploring for petroleum and natural gas on First Nation Lands in Western Canada.
Forward Looking Statements
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Sundance. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sundance does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Cautionary Statement Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
Contact Information:
Jeffrey Standen
President / CEO
(403) 538-8446
(403) 228-7759 (FAX)
jeff@sundance-energy.ca
www.sundance-energy.ca