Primarily targeting the Woodford Shale, the Huffstutlar A-21-10 well is the fourth in Sundance’s initial six to eight-well program at its Ashland gas acreage. Sundance will hold about a 50% interest in this well.

The first three wells were vertically drilled, with the two most recent wells scheduled for frac stimulation over the next fortnight before being connected to production infrastructure.

“With the benefit of data from the first three wells, we believe that horizontally drilling into the Ashland shale will now yield far superior economics,” Sundance managing director Jayme McCoy said today.

“If successful, horizontal wells, despite their higher drill costs, have the potential to deliver gas volumes four to five times that of a commercial vertical well.”

Huffstutlar A-21-1 is firstly being drilled vertically to a kick-off point above the Woodford target, and then horizontally for about 487 metres through the formation.

It is expected drilling will take about 35 days to reach a total depth of about 2,225 metres, after which the well will be cased and completed for production.

Sundance also announced that the second well in the 2005 drilling program, Price A 22-7-10, will be fracture stimulated at its Woodford Shale target next Tuesday.

Reaching a target depth on July 11 this year, Price A encountered good gas shows in both of its targeted formations, the Caney and Woodford Shales.

McCoy said the company intended to use a gas lift system to assist in the flow back of frac fluids.

“This would speed the recovery of those fluids, allowing the Price well to be placed into production,” he said .

Meanwhile, the redrilled Tucker A 26-A 4 – the program’s third well – reached its target depth on October 6, after being spudded on September 13.

Sundance said good gas shows were recorded at this well, with wireline logs indicating a thickness of 52 metres for the Caney and 49 metres for the Woodford.

The logs also recorded three metres of a potentially productive up-hole zone in the Wapanucka Limestone. Production casing has been successfully run and cemented across all three formations.

Tucker A 26-A 4 will be frac stimulated from its Woodford Shale formation on November 1. After this time the gas lift system will again be employed to assist in the flow back of the frac fluids before placing this well into production.

McCoy said the company was continuing to analyse outcomes for the first well in the program, OL Hill, in which it has a 55% interest, and expected in the next few days to make a final determination on its future.

“OL Hill recorded good gas shows in its primary objectives, the Caney and Woolford Shales and has since been cased, perforated and fracced for production purposes,” he said.