Sun Resources (ASX: SUR) has added Amerril Energy to its share register as its largest shareholder with a 15.9% interest after Amerril accepted ordinary shares in Sun for 95% of the purchase consideration of the Amerril Oil Project.
Sun and Amerril reached an earlier agreement to swap cash for shares as consideration for the Amerril Oil Project acquisition.
The upside to the new deal is that it saves Sun US$4.6 million in capital, and it secures a major shareholder with significant success and experience in the Woodbine oil play.
Matthew Battrick, managing director of Sun Resources, commented: "We are very pleased to welcome Amerril as the largest shareholder in Sun and we look forward to working closely with Amerril's Houston-based team to deliver the future growth potential we see in the highly prospective Woodbine area of the Eagle Ford Shale Oil Trend.
"With the completion of the Amerril Oil Project transaction, Sun has an interest in over 24,248 gross acres in the Woodbine tight oil play and the vendor, Amerril, has demonstrated its belief in our Delta Oil Project leases by accepting ordinary shares in Sun for 95% of the purchase consideration."
The potential of Woodbine was previously recognised by Halcón Resources Corporation, the same group that recognised the Eagle Ford potential, and sold to BHP Billiton (ASX: BHP) in a $12.1 billion transaction.
Recent Woodbine wells have being encouraging with a number of them producing at initial rates of about 1000 barrels of oil equivalent per day.
Well economics are also attractive with average reserves of 500,000 barrels per productive zone in each well along with proximity to existing infrastructure.
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