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Sun Resources director appointment will advance Delta Oil opportunities

Sun Resources (ASX: SUR) has appointed Damian Kestel to the board of the company as a non-executive director, beginning on February 1, 2012.

The appointment recognises Kestel’s knowledge of Asian markets, which will be an asset to the company as it pursues the Delta Oil Project.

Kestel has more than 20 years’ experience in finance, law and securities analysis, working in a number of senior roles for CLSA Limited, based in Singapore and Hong Kong. CLSA is Asia’s longest running independent brokerage and investment group.

“We are delighted to attract an experienced finance professional of Damian’s calibre to the board of Sun Resources as we embark on our new strategy of pursuing unconventional shale oil opportunities,” Sun chairman Dr Wolf Martinick said.

“Damian’s commercial acumen will be particularly valuable as the company seeks to maximise value from the Delta Oil Project.”

The Delta project is located in the highly prospective Eagle Ford Shale Fairway in Texas, U.S., and has estimated net Prospective Oil Resources of 10 million barrels in one sand unit,

An assessment by independent consulting firm Ralph E. Davis gives a net present value for the project of US$310 million, equivalent to US$10.3 million per well and US$31 per barrel of oil for 10 million barrels of oil from one 20 feet thick sand unit.

The consultants also pointed to the potential upside of a further unrisked 10 to 20 million barrels of Prospective Oil Resources in other sand units in the 450 feet thick prospective sequence.

Importantly, Sun is fully funded for the acquisition of the Delta project, after completing a A$10.8 million capital raising program.

In late October Sun held a 100% working interest in 4,442 acres of the project, and planned to continue to progress towards the acquisition target of 10,000 acres.

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