Sundance Energy Corp. (TSX-V:SNY) updated operations.

IOGC Permit #OP-3300 - Alexander Area, Central Alberta

The 16-11-56-27W4 test well, which swab tested oil in both the Alexander and Detrital zones, was production tested commencing on July 3, 2012. After an initial test that produced water, the Alexander sand was isolated from the Ellersie and Detrital zones that had been perforated during completion, and was production tested over a 40 day period.

The 16-11 test well was produced at a rate of approximately 16 cu m per day with oil cuts of up to 3%. The 16-11 well is currently shut-in pending a review of additional potential in the wellbore.

Subsequent to drilling the 16-11 test well, the corporation shot, processed and interpreted a nine-square-mile 3-D seismic program, and has recently obtained well information from the offsetting 9-12-56-27W4 well, which is located approximately 1.5 km east of the 16-11 test well. The 9-12 well has steadily produced from the Detrital zone over the last year with an average 90-day initial production rate of 117 BOE/d and an average 365-day IP rate of 98 BOE/d.

Utilizing the data from the 9-12 well in conjunction with the corporation's newly obtained 3-D seismic data, it was determined that the 16-11 test well was not drilled in the optimum location for oil production from either the Detrital and/or the Alexander formations. Consequently, new targets have been identified and Sundance is currently in the process of licensing three new drilling locations directly offsetting the 16-11 test well.

As a result of drilling the 16-11 test well, Sundance has earned four gross, and two net, sections of land on the Alexander permit. Sundance owns a 50% interest in the Alexander permit and is the operator.

IOGC Permit #OP-3293 - Ochapowace Area, S.E. Saskatchewan

The 6-5-18-3W2 test well was drilled, cased and completed and is currently suspended. Independent log and core analysis has established that the 6-5 test well contains hydrocarbons in multiple formations that may be developable utilizing unconventional drilling and fracing techniques.

3-D seismic has identified numerous multi-formation drilling locations on the corporation's lands. Formations of particular interest are the Bakken, Torquay, Lodgepole and Birdbear.

Subject to available funding, an additional test well is intended to be drilled on the Ochapowace permit prior to the end of 2012 to further evaluate the light-oil potential in the Bakken, Lodgepole, Torquay and Birdbear formations.

Sundance intends to drill the 16-32-17-3 W2 test well with a partner who owns the potash rights below Sundance's target oil and gas formations. The 16-32 test well is currently in the process of being licensed. It is hoped that this additional test well will provide significant data to Sundance regarding its target formations on this permit and the potential for unconventional drilling development.

As a result of drilling the 6-5 test well, Sundance has earned five sections of land on the Ochapowace permit. Sundance is in ongoing discussions with various parties regarding joint-venture and farm-in opportunities on the Ochapowace permit. Sundance owns a 100% interest in the Ochapowace permit and is the operator.