Sundance Energy Corporation (SNY.V) has drilled, logged and
cased a test well at 16-11-56-27-W4M on its 27 contiguous section
(17,280 acre) Alexander Property, Edmonton.
One third of the costs to drill, complete and equip the 16A-11
Test Well were paid by various participants in order to earn a 21%
working interest in the well and the applicable drilling spacing
unit and a right to participate for a 17.5% working interest in
future wells drilled on 5 of the 27 sections that comprise the
Alexander Property. Sundance is paying 17% of the costs to drill,
complete and equip the 16A-11 Test Well, will maintain a 29%
working interest in the well and the applicable drilling spacing
unit and will continue to have a 50% interest in the other 22
sections of land that comprise the Alexander Property. Sundance and
its partner have finalized plans to complete the 16A-11 Test Well
and will begin these operations as soon as possible.
Ochapowace Permit, SE Saskatchewan
Sundance has reached an agreement with an issuer that owns the
potash rights below Sundance's target oil and gas formations on the
Ochapowace Permit to drill a vertical test well on a 3D seismic
defined structural high.
Sundance has already earned 5 sections (3,200 acres) of land on
the approximately 40,000 acre Ochapowace Permit, has 100% interest
in the oil and gas rights and is the Operator. Sundance will also
earn a 100% interest in the oil and gas rights in an additional 5
sections (3,200 acres) of land as a result of the 16-32 Test Well
being drilled.
Lashburn Lease, SW Saskatchewan
Sundance reports that a test well will be drilled by an industry
partner in the first quarter of 2013 on its Lashburn Lease. The
Lashburn Test Well will be drilled at no cost to Sundance, yet
Sundance will maintain a 40% interest in the test well. The
industry partner has the option to drill up to 7 additional wells
on the Lashburn Lease. Sundance will maintain a 40% interest in
each well drilled despite not being responsible for any of the
drilling costs.
Sundance is up 40% to 3.5 cents late morning.