Sun Resources Sees Excellent Results from Flour Bluff Workover Program

Flour Bluff Gas Project
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As advised in the June 2007 quarterly report, the operator of the Flour Bluff Gas Fields, Gulf Coast South Texas, commenced a workover program mid June quarter on East Flour Bluff Field wells, D-18, D-19 and D-24, and now whilst equipment is at site, on the Smith #1 well in the West Flour Bluff Field.

The aim of the program is to arrest declining production and bring daily production to above 3,000,000 scfd from the current 1,600,000 scfd level by carrying out completions on up hole reserves behind pipe in the wells with immediate delivery of ensuing production to the gas processing plant for sales.

These workovers are the result of Sun Resourcesí active lobbying of the Operator and were considered and approved at a technical meeting in Houston in early February 2007.


- The J-64 sand in the D-24 well was completed and resulted in a final stabilized daily gas flow of 635,000 scf with 26 boc (791,000 scfe gas) and 8 bw to the gas processing plant for sales. The forward plan is to clean up and stabilize the current 791,000 scfe gas flow for 3 months before fraccing to enhance flow from the J-64 zone and to commingle gas production with the presently shut in J-90 sand gas. J-64 sand has 3.68 bcf and 92,000 bo proved reserves.

- The J-02 sand in the D-13 well was completed and is currently flowing at 1,211,000 scf of gas per day with ~16 boc (1,307,000 scfe gas) and 1bw to the gas processing plant for sales. The J-02 is estimated to have 0.5 bcf of reserves.

- Workover operations are current on D-19 and will commence on Smith #1 in the next 1-2 weeks. Results will be advised on completion of workovers on these wells.


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