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Sun Resources Shares Jump 110% In April

Sun Resources (ASX: SUR) shares closed up 8% yesterday at A$0.042, after an intraday high of A$0.048, up 23% on Tuesday's closing price of A$0.039.

The share price jump was accompanied by high volume, with more than 80 million shares changing hands.

Over the longer time frame of April, Sun Resources has gained 110% to yesterday's close, from a closing price of A$0.02 on March 27.

The latest increase comes just days after the company was issued a price and volume query from the ASX regarding a 24% price jump on Friday April 20.

Earlier this month Sun Resources reported that the success of other Eagle Ford Shale operators near its Delta Oil project in Texas indicated that payback on wells could be achieved within 12 months.

The company said operators in Leon and Madison counties were having the greatest success with horizontal well bores of up between 6000 and 7000 feet (1829 to 2133 metres) that were completed with multi-stage fracture stimulations.

These produce oil at initial rates of 800 barrels per day or more with lower than expected decline rates, adding to the commercial potential of the Eaglebine/Woodbine play.

The average cost of drilling, fraccing and bringing these wells into production is about US$5 million (A$4.8 million) to US$6 million each.

Sun Resources also said it was completing due diligence on a seventh tranche of leases that would take it total lease position in the Delta Oil project in Leon County to beyond 8000 acres, close to its target 10,000 acres.

It also noted that demand for leases within Leon County was heating up, with unconfirmed reports of lease sales targeting the Eaglebine/Woodbine reaching up to US$2500 per acre near the Delta Oil project.