Seismic Survey Offshore Malta Has Commenced

Sun Resources reports that the previously delayed 260 line kilometer 2D seismic survey on Exploration Study Area ("ESA") 5 of the offshore Malta Project in the southern Mediterranean Sea is now underway by LARGE Ltd. Participants in the Project are Afrex Limited as operator and Pancontinental Oil and Gas NL. As previously announced, Sun Resources will make an A$325,000 contribution to the cost of acquiring the 2D seismic to earn a 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-Pancon's reconnaissance 2D seismic in ESA Area 5. Previous Afrex-Pancon seismic data suggests the presence of stacked individual target mounds which are of a large size, i.e. > 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 Bouri 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.