Page 12 - Sun Resources Annual Report 2013

Delta Oil Project (Sun: 100%WI) and the
Petro-Hunt AMI (Sun 25%WI)
In August 2011, the Company entered into a binding
agreement with Carina Energy LLC of Houston, Texas, to
acquire approximately 10,000 of net acres of oil and gas
leases, which became the Delta Oil Project. In July 2012,
Sun and Carina amended that agreement to expand Sun’s
Delta Oil Project lease portfolio beyond 10,000 acres with
a new target of 15,000 net acres of oil and gas leases. On
24 December 2012, Sun announced it had purchased a
further tranche of leases in the Woodbine Tight Oil Play
expanding its Delta Oil Project to 11,820 net acres. Sun
has leveraged off the land group skills available to Carina
Energy LLC, the vendor of these additional Woodbine
acres, in building and maintaining its lease position. At
year-end, Sun controls 11,820 net acres within its 100%
owned and operated Delta Oil Project.
A number of successful Woodbine Horizontal wells have
been drilled and completed across the southern regions
of Leon County and these have generally targeted the
Upper or Middle Woodbine sands (Woodbine A & B).
Conventional gas and oil production continues from
Woodbine A sands in the Buffalo and Halliday Fields within
Leon County, as well as from the Sub-Clarksville and Buda
formations. Therefore, the Delta Oil Project leases are well
positioned to further delineate the fairway of Woodbine oil
production, as and when drilling commences there.
Figure 1C: schematic of Sun’s Woodbine Project areas, Leon and Madison
Counties.
Project Area Working Interest
(WI)
Net Revenue
Interest (NRI)
Acres
Net Gross
Delta Oil 100% 75% 11,010 11,010
Petro-Hunt AMI (Delta) 25% 18.75% 810 3,240
Amerril Oil 50% 37.5% 5,989 11,979
Beeler Oil (CW Brown) 13.5% 10.5% - -
Beeler Oil (Remainder) 16.7% 12.5% 280 1,398
Normangee Oil 50% 37.5% 1,976 3,952
TOTAL - - 20,065 31,579
Table 1: Summary of project areas and approximate acreage position, as at 31 August 2013.
REVIEW OF ACTIVITIES
SUN RESOURCES ANNUAL REPORT 2013 10