Sun Resources advised that the Jones-Stewart Gas Unit-1 well ("the F1 well") on the Herradura prospect ("F1") will be completed as a gas producer. Sun Resources' working interest in the F1 discovery is 37.5%.
With a flow rate of almost 300,000 cubic feet per day from only approximately 2 meters of perforations at the top of the 6 meters of net pay in the Frio Formation, this represents revenue to Sun of approximately $600,000 per annum at current prices. The deeper secondary Vicksburg objective was also tested and a number of separate small intervals flowed water with <1% oil after an initial flow of gas so this interval has been plugged off.
Commenting on the result, Matt Battrick, Managing Director of Sun Resources, stated, "The primary target sand has flowed gas on test as expected and the well will be brought on line as a gas producer within the next 2-4 weeks. It is a great result and the first step in this financial year's plan to build revenue from the US asset base through our fully funded drilling program. This result will add incremental reserves and production to Sun, increasing our revenue from US operations to approximately $3.2 million per annum at current prices."
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