Sun Resources and Partners Begin Seismic Work Offshore Malta

Sun Resources reports that seismic work will commence on Exploration Study Area ("ESA") 5 of the offshore Malta Project in the southern Mediterranean Sea on May 13. Participants in the Project are Afrex Limited as operator and Pancontinental Oil and Gas. As previously announced, Sun Resources will make a A$325,000 contribution to the cost of acquiring 2D seismic to earn its 20% interest in the project.

The aim of the seismic program is to confirm the extent and nature of large stacked Lower Cretaceous to Eocene age reef mound structures that have been delineated by Afrex and Pancontinental's reconnaissance 2D seismic in ESA Area 5. This precursor seismic followed up interpreted indications of the presence of stacked reef mounds in a single line of regional seismic that was run through the block by a large oil major several years ago as a well tie, to assist that company's interpretation of seismic data in a block to the east of the current project area. The precursor Afrex- Pancontinental seismic data suggests the presence of individual target mounds which are of a large size, ie > 70 square kilometers in areal extent, with the added dimensions of considerable depth (500 to 700 meters in extent) giving large potential volume targets for accumulations of hydrocarbons.

Similar stacked reef mounds in adjacent Tunisian and Libyan waters are prolific producers of both oil and gas and the major fields, such as Houri in Libya (2,500 million barrels of oil recoverable /1.9 trillion cubic feet of gas recoverable) principally supply European consumer countries, notably Italy and France.

Conditional on a major target reef mound prospect being delineated drilling is probable in the next 1 to 2 years.