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  • Sun Resources Observes Strong Oil Shows In Texas Horizontal Well  0 comments
    Jan 23, 2013 7:25 PM

    Sun Resources (ASX: SUR) has observed strong oil shows while drilling along the lateral section of T. Keeling-1H horizontal well in the Amerril Oil Project, Texas.

    The oil shows in the lower section of the Middle Woodbine Formation, where a 6,400 feet lateral section was drilled, were supported by thru-bit logging completed by operator Amerril Energy.

    A strong pressure "kick" was also recorded after completion of drilling, suggesting natural hydrocarbon flow from the horizontal section of the production well bore.

    Very strong oil shows had been noted in the formation during drilling of the Seale-1 vertical well.

    Sun and Amerril are now drilling the Seale-1H horizontal well, which targets the Lower Woodbine Formation where very strong oil shows were recorded in the Seale-1 vertical well.

    Seale-1H is being targeted as the first well on the project to be fracture stimulated. Once operations are completed at this well, the joint venture will move to frac the T. Keeling-1H well.

    Sun has a 50% working interest and 37.5% net revenue interest in the Amerril project.

    Over in the Richland Oil Project, the John Beeler-1H vertical well has flowed 178 barrels of oil within 880 barrels of frac fluid during the latest 24 hour flow period.

    This rate is not yet stabilised and is likely to increase as the gas lift process, which started today, is given time to improve fluid recovery rates.

    Operations at the Beeler-1H well have been suspended while operator Richland Resources Corporation prepares to carry out a workover to clean out the paraffin in the well.

    The build-up of paraffin is due to crude oil cooling while rising in the fluid stream. This is seen elsewhere in the area by neighbouring operators and can be easily rectified.

    Richland will add a chemical inhibitor to prevent further paraffin build up and will also install a rod pump to facilitate further frac fluid recovery and maintain around 400 barrels of fluid recovery per day.

    Beeler-1H was fracced with more than 130,000 barrels of water and fraccing ingredients and to date only around 10% of the fraccing fluids have flowed to surface and been recovered. Typically in a well such as this, 20% to 25% of recovery of fraccing fluids need to be recovered before a accurate, reliable initial production oil flow rate can be determined.

    The joint venture has also successfully fracced the Ellis-1H well across 19 stages along its 7,000 foot lateral section and has started clean up and flow back operations.

    Sun has a 13.5417% working interest (10.1563% net revenue interest) in Beeler-1H and 16.67% working interest (12.5% NRI) in the other wells.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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