Sun Resources (ASX: SUR) has made progress towards its targeted 15,000 net acres of oil and gas leases in the Delta Oil Project, Texas, with its latest purchase taking its current holding to 10,636 net acres.
The acquisition of a further 748 acres also takes its overall footprint in the Woodbine Tight Oil Play up to 17,010 net acres, or 24,248 gross acres, putting it close towards its target of 35,000 gross acres.
With its stakes in the Amerril Oil Project and the Richland Oil Project, where the success of the Beeler-1H well has sparked the joint venture to commit to two additional horizontal wells, Sun is planning to capitalise on the "runway" potential within its leases by applying horizontal drilling and multi-stage fracture stimulation that have been so successful in other shale and tight oil plays.
Woodbine Tight Oil Play
The potential of the Woodbine was recognised by Halcón Resources Corporation, which is led by the same team at Petrohawk Energy that recognised the potential of the Eagle Ford, cumulating in Petrohawk's acquisition by BHP Billiton for A$12.1 billion.
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.
Halcón itself has bought Woodbine production assets close to Sun's leases for US$500 million.
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