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Sun Resources To Begin Work Over Operations At Richland Oil Project

Sun Resources (ASX: SUR) has appointed Amerril Energy as the operator of the Richland Oil Project to complete the current work over operations on the project's production wells, to achieve higher flow rate recovery rates.

The operations will include the installation and commissioning of a jet pump on the Ellis-1H well, and rod pumps on the other two horizontal wells.

The most successful horizontal well in the Richland Oil Project, Ellis-1H, has been chosen for the installation of a high performance jet pump, based on the high natural flow rates achieved during the initial flow back period.

The pump will aim to deliver higher fluid rates (oil and frac water) than currently achieved.

The jet pump is expected to deliver 500 to 1,500 barrels of fluid per day and will endeavour to "unload" more frac water, currently at 31% recovery, from the toe of the lateral.

The jet pump installation is due to commence shortly and is now scheduled to be completed by mid-March.

Clean-up and flow back operations will recommence when the jet pump has been installed and the work over rig has been moved to the Beeler-1H location.

Meanwhile, the Beeler-1H horizontal well is currently shut in awaiting a work over to clean out the paraffin in the well and the installation of a rod pump to facilitate further frac fluid recovery and maintain approximately 300 to 500 barrels of fluid recovery per day.

Beeler-1H was fracced with more than 130,000 barrels of fluid, and to date around 11% of the fraccing fluids have flowed to surface and has been recovered.

The installation of a rod pump will expedite frac fluid recovery.

Clean-up and flow back operations at the John Beeler-1H and John Beeler-2 wells remain suspended while the work over rig installs the pumps on Beeler-1H and Ellis-1H and monitors their performance while on pump.

This activity will determine the best pump option for the two John Beeler wells.

To date about 17% to 21% of fraccing fluids have been recovered from the Woodbine section of both wells, with oil continuing to flow from John Beeler-1H and oil cut beginning in John Beeler-2 as anticipated.

Sun's working interest in the Beeler-1H well is 13.5417%, while in the John Beeler-1H, John Beeler-2 and Ellis-1H Sun holds a 16.67% working interest.

Amerril Oil Project

Seale-1H, Sun's fifth horizontal Woodbine well, has been prioritised as the first well to be fracced in the Amerril Oil Project due to the very strong oil shows seen in the vertical Seale-1 well.

The well was spudded on 19 January 2013 and to date had drilled to a depth of 8,700 feet depth in the horizontal section of the well bore.

This well is targeting greater than 6,000 feet of lateral section in the Woodbine Formation where very strong oil shows, including oil over the shale shakers, were recorded in the Seale-1 vertical well.

The well is currently being side-tracked, from about 7,400 feet depth, around some unstable hole below the intermediate casing shoe that prevented more than 800 feet of section to be drilled in the original horizontal well bore.

This activity is anticipated to delay the completion and fraccing of the well by about two weeks.

The T. Keeling-1H lateral well and the Seale-1 vertical well have been cased awaiting fraccing and flow back operations.

Very strong oil shows were observed while drilling the Woodbine section in the vertical Seale -1 well, including live oil over the shale shakers.

Excellent oil shows were also recorded while drilling along the length of the T. Keeling lateral and a pressure "kick" was also recorded after completion of drilling in the lateral, suggesting natural hydrocarbon flow from the horizontal section of the production well bore.

The T. Keeling lateral was recently logged using "thru-bit" logging tools, and Sun's interpretation of those logs supports the potential for high quality oil pay in the well.

These two wells will likely be fracced after the completion of drilling, fraccing and flow back activities in the Seale-1H horizontal well.

Sun has a 50% working interest in the Seale-1, Seale-1H and T. Keeling-1H wells.

The company is well funded with A$8.4 million in cash at the end of December 2012.

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