Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Sun Resources Encouraged By Discovery Of Three Hydrocarbon Pay Zones In Texas Well

Sun Resources (ASX: SUR) is encouraged by its first Texas Woodbine well after wireline logging confirmed that it intersected hydrocarbon pay in three separate zones.

Operator Richland Resources Corporation is now preparing to drill the horizontal section of the well into the primary target Woodbine A zone that is equivalent to the zone producing oil in Halcón Resources Corporation's Gresham A-1H horizontal well immediately to the south east of the lease.

"We are highly encouraged by the results of the wireline logging, which confirm Sun's belief that its Richfield Oil Project has the potential to flow oil from multiple zones," Sun managing director Matthew Battrick said.

"Our participation in the Beeler-1 well has been a relatively inexpensive exercise for Sun, and at the same time, has provided significant encouragement about the prospectivity of our entire Woodbine portfolio, which is now in excess of 16,262 net acres.

"We look forward to the next part of the drilling programme which will kick-off drilling the 6,000 foot lateral section of the well into the Woodbine A sand, before fraccing of the horizontal drain hole commences.

"Given the proximity of our Richland Oil Project to existing infrastructure, if successful, the Beeler -1 well can quickly be tied into sales and commence generating revenue for Sun".

Beeler-1H is expected to be drilled, fracced and completed by late September 2012.

Beeler-1H

Wireline logs confirmed Beeler-1H encountered hydrocarbon pay in the secondary target Sub-Clarksville zone, the primary target Woodbine A zone and the Woodbine B zone.

The Sub-Clarksville target below the Austin Chalk held 30 metres of gross pay below 1,905 metres while the Woodbine A held the same amount of pay from a depth of 1,981 metres.

The 46 metres of gross pay identified in the Woodbine B below 2,102 metres is believed to be equivalent to an oil-producing horizontal well drilled by Encana, immediately to the south of the lease area.

These confirm the potential of the Woodbine at two levels and the Sub-Clarksville at this location, delivering three target zones for horizontal wells.

The log section in each case appears better than nearby historical vertical wells and in line with expectations based on oil-productive horizontal offset wells.

Sun has a 13.5417% interest in Beeler-1H.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.