Sundance Energy Corporation reports that the previously announced lease acquired from the Moosomin First Nation in the Lashburn Area, Saskatchewan has been farmed-out to a private oil and gas operator that is currently active in the Lashburn Area. The Lashburn lease lies within the boundaries of the Lashburn West Sparky oilfield located in Western Saskatchewan.

Under the terms of the Farmin Agreement Sundance's farmin partner will drill four development wells on Sundance's Lashburn lease. Sundance's farmin partner will pay 100% of the costs to earn a 60% interest in the four development wells. Sundance will be carried at no cost through the drilling, testing, completion and equipping costs, including the tanks, in all four development wells and will retain a 40% interest in these wells. Sundance's farmin partner must drill the first development well on or before May 30, 2012, the second well on or before June 30, 2012, the third well on or before July 30, 2012 and the fourth well on or before August 30, 2012. If Sundance's farmin partner does not meet its drilling commitments then all rights to the Lashburn lease revert back to Sundance.

Upon Sundance's farmin partner meeting its drilling commitments Sundance will retain a 50% participation interest in the balance of the Lashburn lease that may see as many as four additional wells drilled during 2012.

Tags: Sundance Energy