CALGARY, ALBERTA -- (Marketwire) -- 01/15/13 -- Sundance Energy Corporation (TSX VENTURE: SNY) (OTCQX: SNYXF)("Sundance" or the "Corporation") is pleased to announce that it has drilled, logged and cased a test well at 16-11-56-27-W4M (the "16A-11 Test Well") on its 27 contiguous section (17,280 acre) Alexander Property. The Alexander Property is located just northeast of the city of Edmonton, Alberta and immediately adjacent to a Detrital Sand and Alexander Sand light oilfield that is undergoing continued development by another operator.
As previously announced, 33% of the costs to drill, complete and equip the 16A-11 Test Well were paid by various participants in order to earn a 21% working interest in the well and the applicable drilling spacing unit and a right to participate for a 17.5% working interest in future wells drilled on 5 of the 27 sections that comprise the Alexander Property. Sundance is paying 17% of the costs to drill, complete and equip the 16A-11 Test Well, will maintain a 29% working interest in the well and the applicable drilling spacing unit and will continue to have a 50% interest in the other 22 sections of land that comprise the Alexander Property. Sundance and its partner have finalized plans to complete the 16A-11 Test Well and will begin these operations as soon as possible.
Sundance is the operator of the 16A-11 Test Well and the Alexander Property. The 16A-11 Test Well has been identified utilizing extensive 3D seismic data and modeling. The 16A-11 Test Well is primarily targeting light oil production from the Detrital Sand formation and secondly light oil production from the shallower Alexander Sand formation.
Ochapowace Permit, SE Saskatchewan
Sundance would also like to announce that it has reached an agreement with an issuer that owns the potash rights below Sundance's target oil and gas formations on the Ochapowace Permit to drill a vertical test well on a 3D seismic defined structural high. The test well will be drilled at 16-32-17-3 W2 (the "16-32 Test Well") and is intended to further evaluate the light oil potential on the Ochapowace Permit in the Bakken, Lodgepole, Torquay and Birdbear formations. The majority of the costs to drill, core and complete the 16-32 Test Well will be paid for on behalf of Sundance in exchange for Sundance allowing this issuer to license the 3D seismic data previously shot and interpreted by Sundance on the Ochapowace Permit. Sundance anticipates that drilling of the 16-32 Test Well will commence in the first quarter of 2013.
Sundance has already earned 5 sections (3,200 acres) of land on the approximately 40,000 acre Ochapowace Permit, has 100% interest in the oil and gas rights and is the Operator. Sundance will also earn a 100% interest in the oil and gas rights in an additional 5 sections (3,200 acres) of land as a result of the 16-32 Test Well being drilled.
Lashburn Lease, SW Saskatchewan
Sundance would also like to announce that a test well will be drilled by an industry partner in the first quarter of 2013 on its Lashburn Lease (the "Lashburn Test Well"). The Lashburn Test Well will be drilled at no cost to Sundance, yet Sundance will maintain a 40% interest in the test well. The industry partner has the option to drill up to 7 additional wells on the Lashburn Lease. Sundance will maintain a 40% interest in each well drilled despite not being responsible for any of the drilling costs.
Cancellation of Stock Options
Sundance has cancelled 2,650,000 incentive stock options previously issued to directors, officers, employees and consultants. The stock options had an exercise price of $0.50 and a 5-year term ending on April 8, 2016.
Shares for Services
The TSX Venture Exchange has approved the previously announced issuance of 200,000 common shares by Sundance in exchange for the retirement of $10,000 owed to a service provider for legal services. These shares have now been issued by Sundance and the debt retired by the service provider.
Sundance Energy Corporation is a junior publicly traded oil and gas company whose primary focus is exploring First Nation Lands in Western Canada. Sundance trades in Canada on the TSX Venture Exchange under the trading symbol "SNY".
Forward Looking Statements & Additional Cautionary Language
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.
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.
Sundance Energy Corporation
(403) 228-7715 (FAX)
Most Popular Stories
- Rackspace Ends Talks About Possible Acquisition
- Mercedes Rolls Out S550 Plug-in Hybrid
- Plus-Size iPhones Live Up to The Hype
- FedEx Adding 50,000 Holiday Jobs
- Missouri GM Plant Adding 750 jobs
- Toxic Algae Threatens Florida Fishing, Tourism
- Cool Features on Today's New iOS 8
- Family Dollar Spurning Bid From Dollar General
- Kohl's Hiring 67,000 for the Holidays
- Poverty Rate Drops for First Time Since 2006