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Sun Resources Director Uses On Market Purchase To Increase Stake As Texas Drilling Nears

Sun Resources' (ASX: SUR) director Damian Kestel now holds 11,216,368 shares in the company after acquiring 799,388 shares on market. Kestel bought the shares for $52,526, or an average price of A$0.066 each.

Sun has continued to build its acreage in the Woodbine Tight Oil play in Texas and is poised to participate in the Beeler-1H horizontal well this month.

The company has brought its Delta Oil Project holding up to 9,888 net acres this week after acquiring a further 1,541 net acres from the vendor, bringing it closer to its target of 15,000 net acres in the project and 35,000 gross acres in the Woodbine play.

Beeler-1H targets the same productive Woodbine Formation interval as that in the PMO Oil Field, which Halcón Resources Corporation paid Petromax Operating Company US$378 million (A$370.7 million) for a 75% stake in.

It is located about 6.76 kilometres from the Gresham A-1H well that is the second best well of the 15 horizontal Woodbine wells that make up the PMO oil field. It currently produces about 600 barrels per day of oil.

Success at Beeler-1H will add substantial value to Sun's asset base and possibly provide cash flow.

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