Sundance Energy tapping success in the US Sundance Energy has staked its future on the oil and unconventional gas revolution under way in North America. This is a revolution that has the potential, according to reports last year, to make the world's largest energy consumer self-sufficient, removing its reliance on Middle Eastern supplies. It is a revolution that Sundance Energy with a team of about 25 employees and its managing director based primarily at the Denver, Colorado, headquarters of its US subsidiary aims to be a part of, according to chairman Mike Hannell. The company recently paid $US14 million ($13.4 million) to acquire about 2300 mineral acres in the heart of the Wattenberg Field part of the Denver-Julesburg Basin that straddles Wyoming and Colorado. The area contains a potential resource of 5-9 million barrels of oil equivalent, with a present value of $US35-$80 million The deal brought the company's Wattenberg holdings to about 4500 acres. "These assets have the potential to contribute to near-term increases in production, cash flow and reserves," managing director Eric McCrady said. With projects straddling the DJ Basin, along with the Williston Basin in North Dakota and the Anadarko Basin in Oklahoma, the company is focused on the acquisition and development of large, repeatable oil and gas resources. In the 2012 financial year, Sundance Energy produced an average of 1163 barrels of oil a day from its projects, for a $6 million after-tax profit. In August it also negotiated the sale of its South Antelope field in the Williston Basin for $US172.4 million. Today Sundance Energy's share price sits at about 90c, but Mr Hannell is confident it still has a way to rise as the company completes a merger with producer Texon Petroleum. Texon Petroleum has interests in the Eagle Ford Basin that straddles southern Texas and Louisiana and production of about 700 barrels of oil per day equivalent. "It's a good fit as we both have interests in unconventional liquids-rich gas and oil," Mr Hannell says. Previously Sundance Energy had mainly performed the role of "silent partner" on its projects, providing financial investment and technical support while leaving production to its partners. "It was the strategic decision of the board in early 2011 to increasingly move to hands-on production as the operator," Mr Hannell says. This will continue as part of the Texon Petroleum merger deal. The merger is expected to increase the company's market capitalisation to about $315 million on current share prices, significantly raising Sundance Energy's profile and likely to change its shareholder base. Already the company is seeing interest from institutional investors, and Mr Hannell says Sundance Energy is considering listing on the US stock markets in the future to provide better access to local capital. "We believe the Texon merger will lead to many new shareholders," he says. Despite controversy in the US and on Australia's east coast about the impact of shale and coal-seam gas projects on adjoining landholders and water tables, Mr Hannell says Sundance Energy had benefited from operating in majority pastoral areas with landowners who receive royalties from the company's projects. On the whole, he says, there has been little opposition from groups that oppose fracking. Yet despite the increase in activity in South Australia's Cooper Basin, Sundance Energy will not be coming home. While acknowledging the opportunities in South Australia, Mr Hannell believes the company is set to capitalise on a period of historic change in the US.