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Sun Resources acquires fourth Delta Oil tranche in Texas

Sun Resources (ASX: SUR) has secured the fourth tranche of oil and gas leases in the Delta Oil Project, along strike from the Eagle Ford Share oil and gas fairway in Texas.

Sun now controls a 100% working interest in 6,053 acres of leases in the Delta project.

Under the acquisition agreement from August 2011, Sun will continue to progress towards the acquisition target of 10,000 acres.

The Delta project has estimated net Prospective Oil Resources of 10 million barrels in one sand unit, with a net present value of US$310 million, equivalent to US$10.3 million per well and US$31 per barrel of oil.

An assessment by independent consulting firm Ralph E. Davis 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.