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Sun Resources Focusing On Woodbine Play With Sale Of Stake In WA Permit

Sun Resources (ASX: SUR) is continuing its strategy of focusing on its Texas Woodbine Tight Oil Play with the sale of its interest in an offshore Western Australia permit to private company Hydra Energy.

The binding Sale and Purchase Agreement covers Sun's 9.25% working interest in Retention Licence WA-47-R, which contains small undeveloped Sage oil field.

Operator Apache continues to review developmnet options for Sage, including a tie-back to the nearby Wandoo field.

"We are pleased to announce this transaction, which, along with the recent announcement by Carnarvon Petroleum (ASX: CVN), in relation to our interest in L20/50 in Thailand, demonstrates our commitment to remain focussed on onshore unconventional oil and gas exploration and development, particularly in the Woodbine Tight Oil Play of East Texas," Sun managing director Matthew Battrick said.

Sun had last week acquired its fourth Woodbine project in Leon County, Texas, and is participating in four wells at the Richland project that could deliver early cash flows.

Hydra had earlier this month picked up a 5.235% stake in WA-47-R along with other Carnarvon Basin assets from Pan Pacific Petroleum (ASX: PPP).

These contain a number of small undeveloped oil and gas discoveries which are a clear fit for Hydra, which specialises in small field development with a focus on undeveloped discoveries and late-life assets in Australia and Asia.

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