The company is expecting to the gain C$1.4m ($1.36m) net proceeds from the sale of the non-core asset.

The final offer will be signed subject to standard industry due diligence by the offeror.

Sundance and the offeror are expected to close the deal by the end of July 2012.

Sundance has also announced the cancellation of preferred share financing that was planned to be completed through Beaufort International Associates.

Sundance Energy is an oil and gas company whose primary focus is exploring First Nation Lands in Western Canada.