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Sun Resources Shining With Oil Production From Woodbine Well Imminent

Sun Resources (ASX: SUR) is drawing closer to oil production at its Texas Woodbine Tight Oil Play with fracture stimulation work completed at its Beeler-1H well in the Richland Oil Project.

Drilling at the nearby Amerril Oil Project has also intersected potential hydrocarbon pay in five stacked formations.

Beeler-1H was successfully completed with 27 stages of fraccing along the 6,100 feet lateral in the Upper Woodbine Formation.

Operator Richland Resources Corporation is now bringing in a coiled tubing unit to drill out the plugs and commence clean-up and flow back operations to bring the well into oil production.

The recovery of over 100,000 barrels of fraccing fluids is expected to take 12 to 16 days.

Only after the fluids are recovered will a definitive measurement of initial oil production rates be possible.

The frac crew is now moving off the Beeler-1H location and relocating to the John Beeler-1H well pad.

At the Amerril Oil Project, wireline logs at the Seale-1 vertical well have identified hydrocarbon pay in the Sub-Clarksville, the Upper, Middle and Lower Woodbine and the Glen Rose formations.

Each formation encountered more than 110 feet of gross hydrocarbon pay potential with particularly strong oil indications seen in primary target Middle Woodbine interval.

Each of the five sections is sufficiently thick to merit a horizontal well lateral.

The deepest interval, the Glen Rose Formation, which lies below the Buda-Georgetown Formation, was only considered a secondary target below the primary objective interval but is on trend with oil production from the Alabama Ferry Field in eastern Leon County.

Seale-1 will now be cased for future fraccing and 'multi-zone' production planned to occur in mid-February 2013.

The first in a three well drilling program, Seale-1 will also provide geological information that will allow the follow-up horizontal weales Seale-1H and T.Keeling-1H to accurately drill into the target Middle Woodbine Formation.

"Sun is extremely excited by the quality of oil and gas shows in this well and by the number of stacked pay zones identified in the well," managing director Matthew Battrick said.

"The drilling of these three wells, along with the four wells currently being drilled and fracced on the Richland Oil Project, provides Sun shareholders with an investment in the drilling and fraccing of at least seven Woodbine wells over the coming few months.

"Production from each of these wells can be quickly and cheaply tied into nearby production infrastructure for early cash flow."

Sun is well funded to pay its share of drilling costs, with A$15.4 million in cash.

Richland Oil Project

Fraccing operations at the John Beeler-1H well are expected to start next week and take about two weeks to perform along the 7,300 feet lateral.

John Beeler-1H is currently expected to be fracced and completed by early December 2012. This will be followed by the John Beeler-2 vertical well and the Ellis-1H horizontal well.

Sun believes that the multiple pay intervals intersected by wells in the project are equivalent to the oil-producing horizontal wells drilled by Encana, immediately to the south of the lease area.

These could present further production opportunities for the joint venture.

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.

Amerril Oil Project

At the Amerril Oil Project, the drilling program is located in the southernmost tracts of the leases that make up the project and is located about 10 kilometres south of the Richland project wells.

All three wells will be drilled from separate surface locations, on the same drill pad, with the first well drilled as a vertical 'pilot' hole and both logged and cased for future production.

The second and third wells will both be horizontal wells drilled into the Woodbine Formation. The fraccing and completion of all three wells will follow the drilling and casing operations on all three wells.

T.Keeling-1H is expected to spud within the next seven days. The well will target up to 7,500 feet of lateral well section in the Middle Woodbine.

This lateral will be drilled in a northerly trajectory to maximise the length of the lateral while remaining within the boundaries of the lease.

Seale-1H will be drilled immediately after and target up to 6,000 feet of lateral well section in the Middle Woodbine.

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

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