Adelaide, Sep 4, 2006 AEST (ABN Newswire) - Sundance Energy Australia Limited (ASX: SEA) announced today that it has entered into a new prospect in Indiana with Evertson Resources Partners, LLC. The two companies have already acquired oil and gas leases over approximately 8,900 mineral acres in the highly prospective Illinois Basin in Indiana.
The Evertson group of independent energy and service companies primarily engages in the acquisition, development and exploration of crude oil and natural gas reserves throughout the Rocky Mountain States and South America. The group operates several hundred wells in six states throughout the region, and is the second largest oil and gas producer in Nebraska
Adelaide-based Sundance already has exposure to other oil and gas plays in Nebraska, and in Oklahoma and Montana.
"This joint venture is further evidence of our commitment to pursue a business strategy of focusing exclusively on large, repeatable resource plays in the United States, with respected and experienced operators such as Evertson," Sundance's Managing Director, Mr Jayme McCoy, said today,
"We have named the initial lease acquisition the Whiskey Run Prospect and ultimately aim to assemble a block of 50,000 or more mineral acres in and around the Prospect to net the Company approximately 25,000 acres," Mr McCoy said.
"The Joint Venture intends to initiate a pilot test well program in the Prospect early next year."
The Whiskey Run Prospect's primary target formation is the gas rich New Albany Shale. The formation's shallow depth of only 1000-1500 feet (305-457 metres) allows for very cost effective development.
"Other US oil and gas explorers, including notably, El Paso Natural Gas Company, have been quite successful in exploiting the New Albany Shale applying horizontal drilling technology and Sundance and Evertson intend to follow those footsteps," Mr McCoy said.
"This prospect alone has the potential of several hundred gross drilling locations, which should result in significantly increasing Sundance's proven reserves over the course of the coming months and years."
A complete overview of the company can be found on the Company's website at www.sundanceenergy.com.au. For further advice on this release, please contact Jayme McCoy, Managing Director, US based (303-543-5707).
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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