Dispositions  Reserves  In July 2014, the Company sold its remaining Denver-Julesburg Basin assets. The net proceeds of approximately $108.8 million  in cash includes the reimbursement of capital expenditures incurred on 8 gross (3.1 net) non-operated horizontal wells. In July 2014, the Company sold its remaining Williston assets for approximately $14.0 million, which included $10 million in  cash and approximately $4.0 million in settlement of a net liability due to the buyer. The Company’s reserves at 31 December 2014 were announced on 29 January 2015. Even though the Company disposed of  the remaining assets in the Williston and Denver-Julesburg Basins, the Company saw significant increases across 1P, 2P and 3P  reserves as compared to reserves at 31 December 2013 primarily through successful implementation of our drilling program  and the acquisition of acreage in the Eagle Ford. The Company’s Proved, Probable and Possible reserve estimates are calculated by Netherland, Sewell & Associates, Inc. (NSAI)  as at 31 December 2014 in accordance with SEC guidelines. The reserve estimates are based on, and fairly represent,  information, supporting documentation prepared by, or under supervision of, Mr. Neil H. Little. Mr. Little is a Licensed  Professional Engineer in the State of Texas (No. 117966) with over 12 years of practical experience in petroleum engineering  studies and over 5 years of practical experience in evaluation of reserves. Mr. Little meets or exceeds the education, training  and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves  Information promulgated by the Society of Petroleum Engineers. We believe that he is proficient in judiciously applying  industry standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserves  definitions and guidelines. Mr. Little consents to the inclusion in this report of the information and context in which it appears.  Although current market prices have fallen significantly, under SEC guidelines, the commodity prices used in the 31 December  2014 reserve estimates were based on the 12-month unweighted arithmetic average of the first day of the month prices for  the prior 1 January 2014 through 1 December 2014, adjusted by lease for transportation fees and regional price differentials. For crude oil volumes, the average West Texas Intermediate posted price of $91.48 per barrel used to calculate PV-10 at 31  December 2014 was down $1.94 per barrel from the average price of $93.42 per barrel used to calculate PV-10 at 31 December  2013. For natural gas volumes, the average Henry Hub spot price of $4.35 per million British thermal units (“MMBTU”) used to  calculate PV-10 at 31 December 2014 was up $0.68 per MMBTU from the average price of $3.67 per MMBTU used to calculate  PV-10 at 31 December 2013. All prices were held constant throughout the estimated economic life of the properties.  Summary reserve information based on NSAI SEC Constant Case is provided below. For management’s case reserve report  assumptions, see Note 17 for further information.  Sundance Total Oil (mbbls) NGL (mbbls) Gas (mmcf) (1) Mboe PV10 (US$MM) Proved Developed Producing 6,124 1,801 12,364 9,985 338.0 Proved Undeveloped 10,903 2,365 16,369 15,996 193.7 Total Proved Reserves 17,026 4,166 28,733 25,981 531.7 Probable Developed 1,344 260 2,008 1,939 48.3 Probable Undeveloped 10,988 5,795 56,423 26,186 185.1 Total 2P Reserves 29,359 10,221 87,164 54,107 765.2 Possible Developed 978 173 1,338 1,375 35.6 Possible Undeveloped 26,382 21,896 263,777 92,241 684.5 Total 3P Reserves 56,718 32,291 352,279 147,723 1,485.2 (1) One barrel of oil is the energy equivalent of six Mcf of natural gas.  Note: Totals may not foot due to rounding. - 20 - 