SEA 0.00% 16.5¢ sundance energy australia limited

share price up on drilling announcement

  1. s8
    7,757 Posts.
    New Helis Drilling Program Commences-

    PHOENIX PROSPECT—MCKENZIE COUNTY, NORTH DAKOTA

    On 19 December 2007, Sundance announced an Exchange and Participation Agreement with Helis Oil &
    Gas Company related to a portion of the Company’s Phoenix Prospect. Helis is an established exploration
    and production company with operations in the onshore and offshore Gulf of Mexico and in the Northern
    Rockies.

    The agreement with Helis included a trade of acreage and cash consideration to Sundance, and established
    Helis as the operator of an Area of Mutual Interest (AMI) within the western side of the prospect area.
    Helis has contracted for a drilling rig for a two year period, and Sundance has the right to participate in
    every well drilled by it in the AMI during that period and beyond.

    The agreement allows Sundance and its shareholders to leverage the operational expertise of Helis, while
    retaining a significant interest in its high potential oil and gas assets. Indeed, the first two wells to be
    drilled by Helis in 2008 are in sections in which Sundance’s ownership interest is approximately 45-47%.
    Sundance anticipates participating in as many as eight wells with Helis in the Phoenix Prospect during
    calendar 2008. The Company’s interests in each well drilled with Helis will vary between 7% and 50%
    dependent upon the relative acreage the two companies own within the spacing unit being drilled.

    And, Helis spudded the first of those wells, the Jones 4-23H, this past Sunday, March 2, and will spud the
    second, the Jones 16-14H, immediately upon completing the 4-23H. Both of these wells are in sections
    directly adjacent to the successful Levang 3-22H well which Sundance participated in with Helis last fall
    and which just came into full production. Further details concerning the Levang and the newly spudded
    Jones are set forth below.
 
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