Eight separate zones of elevated gas readings have been recorded over the interval 3,176-3,399m while drilling through the Upper Wilcox Formation. The strongest gas show was recorded over the interval 3,390-3,401m where total gas increased to 6% from a background of 1.2%.
Three separate zones of elevated gas readings were also recorded over the interval 3,530-3,612m while drilling through the primary target Meek Sands of the Middle Wilcox Formation. The strongest show was recorded over the interval 3,560-3,569m where total gas readings increased to 8.6% from a background of 1.8%. A further two zones of elevated gas readings were recorded in the Lower Wilcox between 3,743-3774m.
The current activity is working drill pipe to condition the hole for logging at a total depth of 3,786m.
Commenting on the success to date at the Meek Prospect, Mr Matt Battrick, Managing Director of Sun Resources stated; "These gas shows are extremely encouraging but the full extent and commercial potential of these shows will only be known after the well logging program is completed, the wireline logs are evaluated and any zones of interest are tested. If successful, this well has the potential to significantly add to the Company's reserves, production and importantly cashflow from the USA. Success here will also give us confidence to consider accessing other exploration opportunities offered by this operator in the future."
In July 2008, Sun Resources negotiated a farm-in with MEI to acquire a 12.5% Working Interest (10%NRI) in the Meek Prospect that lies within the productive Wilcox trend of the onshore Gulf of Mexico in south Texas.
The Meek Prospect is relatively low risk because it has been keyed off an adjacent Middle Wilcox (Meek sands) producing field using 3D seismic attributes. These indicate the presence of hydrocarbons conforming to the prospect structure in stacked, Middle Wilcox (Meek) sands below 3,500m depth. The AHGU #1 well on the prospect targets gas and condensate potential of 16 bcfg with 269,000 bo (18 bcfge).
About Sun Resources NL
Sun Resources NL (ASX:SUR) is an Australian company, which is engaged in oil and gas exploration and investment. The Company operates in two segments: corporate administration and exploration. As of June 30, 2007, the Company participated in the drilling of seven oil and gas wells (six wells on South Texas Project Margarita prospects and one on a development project in the Lake Long Field area in Louisiana) and in a number of work overs and completions. Its exploration and production emphasis is on both oil and gas in conventional geological settings and within conventional reservoirs, principally located in Texas (Flour Bluff Gas Project, Project Margarita and Project Redback on the South Texas Gulf Coast), Louisiana (Lake Long Project) and California (Eagle Oil/Gas Development Project in the San Joaquin Basin). Its subsidiaries include Nieuport Pty Ltd, Sun Resources (New Caledonia) Pty Ltd, Sun Resources (NSW) Pty Ltd and Highland Petroleum Limited.
Sun Resources NL