February 06, 2012 09:00 ET
Sundance Energy Announces New 42,800 Acre Land Option at Muskowekwan
CALGARY, ALBERTA--(Marketwire - Feb. 6, 2012) - Sundance Energy Corporation ("Sundance" or the "Corporation") (TSX VENTURE:SNY)(OTCQX:SNYXF) is pleased to announce that Muskowekwan Resources Ltd. ("MRL"), as general partner of the Muskowekwan Limited Partnership and the Muskowekwan First Nation ("MFN"), has provided Sundance the opportunity to add significant new lands to its already existing approximately 15,500 acre permit and joint-venture farm-in agreement on MFN's lands. These new additional lands will be part of the upcoming subsurface land designation vote on February 25, 2012.
As consideration for the opportunity to add these new lands to the current permit and joint- venture farm-in agreement, Sundance has paid MRL $25,000 and has agreed to issue MRL 100,000 common shares and 100,000 common share purchase warrants exercisable at a price of
.24 per share for a two year period.
The new lands consist of approximately 42,800 acres of which 27,600 acres are TLE (treaty land entitlement) lands and 15,700 acres are pre-reserve lands. Including these lands with the existing 15,500 acre home reserve, a positive designation vote will bring the total land package subject to the joint-venture farm-in agreement to approximately 58,300 acres. This is approximately a 3.5-fold areal increase from the original home reserve landholdings.
Pre-reserve lands are lands that are designated for reserve status but have not yet been transferred to full reserve status. This transfer is a straightforward, well-established procedure. If the upcoming vote receives the requisite majority approval, these pre-reserve lands will be designated for surrender of mineral rights to the Crown, which is required before a mineral lease can be applied for.
SE Saskatchewan Completions Update
As previously announced, Sundance has drilled one well on each of its Ochapowace and Muskowekwan First Nations permits in SE Saskatchewan. The Bakken and Lodgepole formations have now been completed on the Ochapowace 6-5 Well, with the Bakken having been fracked and the Lodgepole now awaiting a frack. While waiting for frack services on the Ochapowace 6-5 Well, Sundance has sent its service rig to the Muskowekwan 5-3 Well to begin conventional completions operations. Sundance will release further information on its completions efforts as it becomes available.
Alexander Project Update
Sundance also announces that subject to receiving the applicable regulatory approvals and the availability of equipment, drilling is anticipated to commence on the first location on its 50% owned 17,280 gross acre (8,640 net acre) Alexander First Nations Permit in Central Alberta at 16-11-56-27 W4M (the "16-11 Well") within 4 to 6 weeks. The 16-11 Well is positioned less than one mile west of the Petro-Reef Resources Ltd. 9-12-56-27 W4M well (the "9-12 Well") which has been producing from the Detrital formation. According to a press release made by Petro-Reef on December 19, 2011, the 9-12 Well was flowing at a net 190 barrels of oil equivalent per day. The producing Detrital formation in the 9-12 Well is one of several formations targeted for the 16-11 Well.
Sundance will also participate as to its 50% interest in a planned 9 square mile, $1 million 3-D seismic program covering the north-east portion of the Alexander First Nations Permit. Sundance expects to have the 3-D seismic program shot and in for processing before the end of March.
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" and on the OTCQX Exchange in the U.S.A. under the trading symbol "SNYXF".
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