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Show The National Enterprise , May 12, 1976 Page Nine Sundance Forecasts Double Sales DENVER-Doubl- ed sales, more exploration and possible acquisitions are in the picture for Sundance Oil Co. of Denver, Caswell Silver told shareholders at the companys annual meeting in Denver. He added the firm is receiving between $1.05 and $1.09 Mcf for its gas, with provisions for heating value, and that rate will increase to $1.22 a thousand cubic feet on the first of July. Shelter Profits Sundance, according to Arne Fryxell, vice president of Sundance and president of One of the reasons for the Oil Sundance of Canada Ltd., extensive exploration program its subsidiary, reported that this year. Silver said, is an the company has participated attempt to shelter some of the in the drilling of 54 wells since profits from the $10 million the first of the year and 24 of sale of its Buffalo Creek Field those wells have been pro- in Canada. The company also ducers, making Sundance the is taking payments for the seventh most active firm in field in installments to reduce Canada, ahead of larger com- the tax impact. The company has a $3.5 panies such as Gulf Oil. Silver said the firm will million line of credit in this spend $11 million this year for country and a $7.5 million line exploration, including $8 mil- of credit in Canada, thats lion for lease acquisitions and enough to satisfy any of the drilling in Canada and $3 present financial needs of the million for exploration activ- company, said Silver. ities in the United States. The firms Canadian explorFryxell said the company ation program, he continued, plans to participate in 60 more will be the highest in the wells during this year and to firms history and will be increase daily gas production completely financed by interby 19.5 million cubic feet, nal cash flow. double the current rate. Sundance executives have Net gas production increase been investigating several to Sundance, after royalties, possible acquisitions of comhe said, will be 14.5 million panies, he continued, but none of the possibilities has cubic feet a day. He said that the company worked out so far. He also said he had nothing currently has 1.05 million gross, or 457,000 net produc- to report about a possible ing acres in Canada with 103 merger or sale of Sundance by We have gross gas wells and four gross another firm. in oil wells. with various talks engaged Well in Pineview Field Flows Oil from Twin Creek Oil flowed in 75 minutes during a test of the Twin Creek formation at American Quasar Petroleums No. 3 Union Pacific, an east side well in the Pineview field, northern Summit County. Its the fourth apparent producer in the field... and the second to flow oil from the Jurassic age Twin Creek limestone, notes Carlton Stowe, minerals specialist, Utah Geological and Mineral Survey. Interval tested was 8,690-8,72- 7 feet, flowing in excess of 80 barrels of oil an hour. The operator is drilling below 8,870 feet at the well where plans call for total depth to be about 10,500 feet in the Nugget sand. It is a mile east of the Pineview field discovery which was completed from Nugget, and nearly three quarters of a mile southeast of the second well which produces from both Twin Creek and the Nugget zones of Jurassic. Meanwhile, production was also indicated at a third well in the field, Champlin Petroleums No. 1 McDonald, an east offsetting well in the field. The Champlin well flowed oil at the rate of 541 barrels a day. It is at a total depth of 10,200 feet where production casing is being set. In other Utah oil and gas activity, Mr. Stowe notes that Ladd Federal well, about 21 Petroleum has abandoned their No. of Moab. It was drilled to 9,443 feet. miles Kewanee Willard Pease Drilling completed his No. of feet cubic from Dakota the gas per day flowing 9,100,000 formation in the North Cisco Springs vicinity. Its total depth is 3,131 feet. Production casing is being set to 8,076 feet at the William well in the Long Canyon area Helis No. 4 Skyline-Federscheduled to begin shortly. In Sanpete west of Moab. Tests are County, just south of Moroni, Hanson Oil is drilling below 2,590 feet on the way to about 20,000 feet for a test of the Nugget sand at the No. 1 Moroni. In other activity, Energy Reserve Group, Wichita, Kansas has reported completion of the purchase of coal leases on 16,000 acres in Sevier County from Coal Search Cororation. An Energy Reserves spokesman said cores, geologic studies and engineering evaluations indicate proven recoverable coal reserves in excess of 40 million tons. Construction of one, or possibly two, conventional underground mines is to start as soon as mine plan studies and federal permits are available. The acreage is approximately 20 miles east of Salina on federal and private land in the Fishlake National Forest. entities, he said, and we are engaged in talks, some of which, for the first time, appear interesting to us. Low Sales According to Silver, sales of gas from the Padre Island area in the Gulf of Mexico have been practically nonexistent. The company presently is awaiting approval by the Army Corps of Engineers on a pipeline proposal. There is another pipeline into the area, but the firm that owns it isnt willing to share the facilities. Large reserves and increasing oil and gas sales should help Sundance maintain earnings gains, Silver told the shareholders. A .. 'a s J Going public is tough. Keeping jour seat is even tougher. Although first quarter results arent yet available, he Going public can be a great opportunity for growth (stock can often facilitate acquisitions) . . . but its not much consolation if youre left on the outside looking in. We can make your company public and keep you in control. No need to worry about months of delays, either. We move quickly and precisely. Talk to us before you give your company away to a board of directors. You built it; you should keep it. added, he felt shareholders would be pleased with them. But, he added, 1976 income should increase n the last six months of the year. Sundance directors declared a regular quarterly dividend payment of five cents a share, payable on the first of June to shareholders of record May 14, he said, and directors intend to continue that rate through the remainder of the - (Hijatfiam (Corporation 25 SOUTH 500 EAST SALT LAKE CITY. UTAH 84102 (801) 531-03- year. 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