For those that didn't know, Encanto is the largest shareholder of Sundance (10.6 million shares = 13.5%) and they operate on the same lands.
March 12, 2012 06:30 ET
Sundance Energy Confirms Multiple Potentially Productive Hydrocarbon-Bearing Reservoirs in Unexplored Areas of SE Saskatchewan and Drills & Cases Alexander Alberta Test Well
CALGARY, ALBERTA--(Marketwire - March 12, 2012) - Sundance Energy Corporation ("Sundance" or the "Corporation") (TSX VENTURE:SNY)(OTCQX:SNYXF) is pleased to announce that it has finished the completions of the 6-5-18-3W2M exploratory test well on its 40,000 acre Ochapowace First Nations Lands (the "Ochapowace Test Well") and of the 5-3-27-15W2M exploratory test well on its 58,000 acre Muskowekwan First Nations Lands (the "Muskowekwan Test Well "), which are both located within SE Saskatchewan's designated potash belt. Both test wells are now classified as standing cased wells and are being assessed by an independent consulting firm in order to aid in designing/planning future horizontal non-conventional operations.
As a result of drilling, coring, fracturing and testing the two wells at Ochapowace and Muskowekwan, Sundance has now confirmed that hydrocarbons have migrated significantly further north than previously identified. The sparse well control that exists in the designated potash belt is a result of provincial regulations that have not allowed oil and gas drilling on provincial crown lands within the designated potash belt for approximately 40 years. Sundance holds federal oil and gas permits on First Nations Lands within this area and as a result, is able to drill its federally governed lands within the provincially designated potash belt.
Sundance's two exploratory test wells encountered oil and gas shows in samples and core data. When analyzed with the well log interpretations, Sundance has determined that the reservoirs present have enough thickness and sufficient porosity and permeability to be capable of supporting potential hydrocarbon production from the Second White Specks, Lodgepole, Bakken, Torquay and Birdbear formations. Upon integrating the Corporation's extensive 2D and 3D seismic data with the new logs and test results, Sundance has selected six additional vertical drilling locations that will be drilled on closed structures. Almost all of the required regulatory approvals have been obtained for Sundance to begin drilling the six additional wells after Spring break-up. The drilling locations on the Ochapowace Lands are 16-32-17-3 W2M, 7-7-18-3 W2M and 16-36-17-4 W2M and on the Muskowekwan Lands at 4-8-27- 15 W2M, 13-18-27-15 W2M and 14-17-27-15 W2M. Results from this multi-well drilling program will assist Sundance in defining the extent of the known potentially productive hydrocarbon-bearing reservoirs, after which Sundance may seek to advance development of these reservoirs using horizontal drilling and multi-stage fracturing techniques.
The Ochapowace Test Well is located approximately 34 miles north from existing horizontal Lodgepole production and 60 miles north of the original vertical exploration test well in the Viewfield Bakken area that originated the prolific development in this region using horizontal drilling and multi-stage fracturing techniques. The Muskowekwan Test Well is located approximately 116 miles northwest of existing oil and gas production and represents a potentially very significant hydrocarbon migration discovery. Sundance has a 100% interest and is the Operator of its S.E. Saskatchewan Lands which currently consist of over 100,000 gross acres of controlled, optional and joint ventured First Nations Lands.
Alexander Alberta Test Well
Sundance further announces that its Alexander 16-11-56-27 W4M exploratory test well ("16-11 Well") has been drilled and cased to a depth sufficient to adequately evaluate the primary formations of interest, being the off-setting light oil producing Alexander sand and the Detrital formation as well as the Ellerslie and Wabumun formations. A service rig has been contracted to commence completions operations. Results will be released as they become available.
Sundance is the operator of the 16-11 Well and has a 50% interest in the Alexander First Nations Project Lands which encompass the entire Alexander First Nation home reserve consisting of 27 contiguous sections (17,280 gross acres). The Corporation's previously announced 3D seismic program of approximately 9 square miles of shooting and recording is underway. Data from the 16-11 Well will be integrated into the 3D seismic data to optimize additional drilling locations on lands controlled by Sundance and its partner.