CALGARY, ALBERTA--(Marketwire - March 4, 2013) - Sundance Energy Corporation ("Sundance") (TSX VENTURE:SNY) (OTCQX:SNYXF) announced today that it has entered into a binding letter agreement (the "Letter Agreement") with respect to a joint venture and proposed business combination with Birch Lake Energy Inc. ("Birch Lake") (TSXV: BLK). Pursuant to the Letter Agreement, Birch Lake has granted to Sundance a right to earn up to 50% of Birch Lake's working interest in its Lochend assets, being the non-operated working interest of 38.90% in certain petroleum and natural gas rights underlying 7,840 gross acres in the Lochend-Bearspaw area of Alberta (the "Lochend Assets").
                In order to earn the working interest, Sundance must pay to Birch Lake an aggregate amount of $7,710,000 (the "Total Payment"), with the initial payment of $1,340,000 due by March 29, 2013. The subsequent payments will be paid upon Birch Lake receiving the authorizations for expenditure from the operator of the Lochend Assets, in accordance with the governing CAPL Operating Procedure. Sundance will earn the proportionate interest in the Lochend Assets upon payment of each installment to Birch Lake, such that upon payment of the Total Payment, Sundance will hold 50% of Birch Lake's interest in the Lochend Assets.
                In addition, upon payment of the Total Payment by Sundance, Birch Lake and Sundance will pursue the closing of a business combination, such that the shareholders of each of Birch Lake and Sundance would own 50% of the resulting issuer. Completion of the business combination is subject to receipt of all required approvals, including regulatory approval (including approval of the TSX Venture Exchange) and shareholder approval.
                In connection with the Letter Agreement, Sundance has agreed to pay a finder's fee of $25,000 to an arm's length third party upon payment of the Total Payment by Sundance.
                The focus of exploration efforts on the Lochend Assets is on the Cardium formation. An initial well was drilled on the Lochend Assets by the operator and is on production. The initial well is more than 6 miles along trend from the nearest Cardium production. According to Birch Lake, the initial well is a geological success as it encountered a porous oil productive Cardium sand at the southern extent of the Lochend Assets and as a result has confirmed the Cardium potential over the majority of the Lochend Assets and has significantly de-risked future drilling of these lands.
                  Alexander, Central Alberta Update
                Sundance further announces that its recently drilled Alexander 16A-11 well is currently standing cased and will remain shut in pending further well log analysis and additional re-processing of the 16 square mile 3D seismic program. To date, only the Detrital formation has been perforated, but has not been fraced. Pending the re-evaluation of the well and seismic, Sundance and its area partner will determine the potential commerciality of undertaking further completions on the Detrital formation and/or completing the Alexander formation in the 16A-11 well. Utilizing the information obtained from the original Alexander 16-11 well and the Alexander 16A-11 well, and the reprocessed 3D seismic data, numerous additional drilling locations have been identified on Sundance's 50% owned 27 contiguous section Alexander Permit. In addition to the Detrital and Alexander formations, Sundance and its area partner are evaluating the potential for commercial production in the Basal Quartz, Ostracod and Wabamun formations on the Alexander Permit.