Adelaide-based Sundance already has exposure to other oil and gas plays in Nebraska, and in Oklahoma and Montana.

Under the new 50:50 partnership with US-based Evertson Resources Partners, Sundance says it has acquired oil and gas leases over about 8900 mineral acres in the “highly prospective” Illinois Basin in Indiana.

“This joint venture is further evidence of our commitment to pursue a business strategy of focusing exclusively on large, repeatable resource plays in the United States, with respected and experienced operators such as Evertson,” Sundance managing director Jayme McCoy said.

“We have named the initial lease acquisition the Whiskey Run Prospect and ultimately aim to assemble a block of 50,000 or more mineral acres in and around the prospect to net the company approximately 25,000 acres,” McCoy said.

The Whiskey Run Prospect’s primary target formation is the gas-rich New Albany Shale, which is at a shallow depth of about 1000-1500 feet (305-457m).

The JV intends to undertake a pilot test well program in the prospect early next year.

“Other US oil and gas explorers, including notably, El Paso Natural Gas Company, have been quite successful in exploiting the New Albany Shale applying horizontal drilling technology and Sundance and Evertson intend to follow those footsteps,” McCoy said.

“This prospect alone has the potential of several hundred gross drilling locations, which should result in significantly increasing Sundance’s proven reserves over the course of the coming months and years.”

The Evertson group of independent energy and service companies primarily engages in the acquisition, development and exploration of crude oil and natural gas reserves throughout the Rocky Mountain states and South America. The group operates several hundred wells in six states throughout the region, and is the second-largest oil and gas producer in Nebraska, according to Sundance.