Sundance Energy Corporation 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 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. 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.

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."

Tags: Sundance Energy Australia Limited