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Sun Resources Upgrading Facilities To Meet High Oil And Fluid Flow From Texas Well

Sun Resources (ASX: SUR) has delivered higher fluid flow rates from its Ellis-1H horizontal oil production well at the Richland Oil Project in Texas following installation of a high performance jet pump.

Notably, both oil and total fluid rates have increased to the point where the capacity of the surface facilities now needs to be enlarged.

Hourly oil production rates recorded during ongoing commissioning of the high performance jet pump have reached up to 15 to 18 barrels per hour, which is sustained over 24 hours would result in rates of 360 to 432 barrels per day.

Stabilised flow rate recordings will only be possible after work on enlarging the surface facilities, which is ongoing with a larger three phase separator already installed, is completed.

Elsewhere on the project, workover operations at the Beeler-1H horizontal well has restored oil and frac water flow and is now awaiting the installation of its own jet pump.

This is expected to be completed this month.

Clean-up and flow back operations have also resumed at the John Beeler-1H horizontal well and the John Beeler-2 vertical well.

John Beeler-1H is awaiting installation of its own jet pump while the vertical well is being worked over to isolate the deep Buda formation interval so that further testing of the combined Woodbine frac intervals can be flowed back more effectively.

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.

At the Amerril Oil Project, Sun and operator Amerril Energy have started multi-stage fracture stimulation operations at their Seale-1H horizontal well.

The planned 17 stage frac will cover up to 6,800 feet of the well's horizontal section.

This is expected to be completed over the next week and will be followed by about a week of well clean-up before the well is shut in for safety reasons to facilitate the multi-stage fraccing of the adjacent T. Keeling-1H horizontal Woodbine well.

Both wells, which had interpreted high quality oil pay in the targeted section of the Woodbine tight oil formation, will then be flowed back at the same time.

Very strong oil shows had also been observed while drilling the Woodbine section in the vertical Seale=1 well, including 'live oil' over the shale shakers.

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

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

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