Sundance Energy Corp. (TSXV: SNY) has entered into a binding letter agreement in respect to a joint venture and proposed business combination with Birch Lake Energy Inc. (TSXV: BLK).

According to the agreement, Birch Lake has granted to Sundance a right to earn up to 50% of Birch Lake's working interest in its Lochend assets. Birch Lake has a 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.

In order to earn the working interest, Sundance must ...