The company said the agreement to participate with Deka in the new project would increase its spread of US oil and gas projects.
Deka, an Oklahoma-based company, has already participated with Sundance in several projects including the recently sold Ashland Prospect, and its current Buffalo Creek Prospect.
Sundance would have a working interest of 6-7% across the North Washington Prospect.
Sundance expects to spud the area's first well on May 1 and would target conventional oil reserves in the Bromide, Tulip Creek, McLish and Oil Creek formations.
The well would be drilled vertically to about 3048m.
The North Washington Prospect includes two to three additional drilling locations assuming the first well is successful, Sundance said.
The prospect area has a strong production history with about 30 wells in the area, 20 of which were completed as producers and two still producing.
Sundance has a portfolio of both US and Australian assets. The company's remaining US oil and gas assets include Indiana's Buffalo Creek Project and North Dakota's Phoenix Prospect and Goliath Prospect.
