Page 12 - Sun Resources 2014 Annual Report

Figure 2: Location of Southern Woodbine Oil
Projects: Normangee and SW Leona, in
relation to the location neighbouring well
drilled and fracced successfully by GOE,
the Zeus #1H well.
Amerril Project:
SW Leona Area
T. Keeling #1H & Seale #1H
Lower Woodbine Oil
Sub-Clarksville Oil
Normangee Oil Project
– Jack Howe #1H
Vertical Pilot well
EOG Lower Woodbine Zeus #1H:
Drilling Completed May’14
(Source: Drillinfo.)
Normangee Oil
Project: Targeting
Lower Woodbine (Sun
50%WI and Operator)
In October 2012, Sun announced
that it had purchased a 50% working
interest in a 3,852 gross acres package
of oil and gas leases located on the
Leon County-Madison County border,
Texas, US (Normangee Oil Project). The
balancing 50% WI in the Normangee
Oil Project was purchased by Amerril
Energy LLC (Amerril).
The Normangee Oil Project extends
Sun’s footprint in the Woodbine Tight
Oil Play along the strike of the fairway
which extends from Leon County west
and south into Madison and Grimes
Counties. The Normangee Oil Project
is on trend to the southwest of Sun’s
existing Delta, SW Leona and Beeler
Oil Projects, providing additional
scale to the lease position in the
highly prospective Woodbine Tight Oil
Play that Sun commenced building
approximately three years ago. There
is existing oil production in both
vertical and horizontal wells drilled into
the Sub-Clarksville Sandstone to the
east and lower Woodbine formations,
immediately to the east and west of
the Normangee Oil Project.
During the December 2013 Quarter
Sun reached an agreement with Amerril
Energy LLC (“Amerril”) to become the
Operator of the Normangee Oil Project,
and Sun operated the first vertical
pilot well and lateral in the Normangee
Oil Project on behalf of Sun and
Amerril. The Jack Howe #1H well is
planned to target the Lower Woodbine
interval that has tested successfully
in leases immediately to the west,
with lateral wells operated by the
US-based independent EOG and also
the El Halcón area in Brazos County,
operated by Halcón.
During the first and second Quarters of
2014, Sun, on behalf of its 50% partner
Amerril, progressed with planning for
the first pilot well and lateral in the
Normangee Oil Project, the Jack Howe
#1H well. Sun announced that the
Jack Howe #1H, vertical pilot well was
spudded on 15 April 2014 and the well
took approximately three weeks to drill,
conventionally core and evaluate (with
wireline logs) the Lower Woodbine and
deeper Buda Limestone targets. After
setting an intermediate string of 10.75
inch (273mm) casing at a depth of
4,653 feet MD (1,418m) and drilling an
8.75 inch (222mm) diametre hole to a
measured depth (MD) of 8,000 feet (ft)
or 2,438 metres (m), the well reached
the coring point at the top of the Lower
Woodbine Formation.
Four coring runs successfully recovered
a total of 167 feet of 4 inch (50m of
102mm) conventional core within the
Lower Woodbine and this core material
has been shipped to Houston for
detailed analysis. Promisingly, elevated
mud log gas and oil fluorescence were
observed during the coring process,
in the Lower Woodbine Formation.
The well was subsequently drilled to
a total depth (TS) of 8,523 feet MD
(2,598m) in the Georgetown Formation,
after recording elevated mud log gas
readings while drilling through the
overlying Buda Formation.
A full suite of wireline logs and sidewall
cores were recovered from the well
at TD and these data were integrated
with the core results ahead of the
decision to drill a lateral and which
interval to target in the future Jack
Howe #1H lateral. Cement plugs
were then set in accordance with the
Texas Railroad Commission (RRC)
requirements for future re-entry to
drill a Lower Woodbine lateral from
the Jack Howe #1H surface location.
The total cost of the drilling, coring
and evaluation of the Jack Howe #1H
vertical pilot well was approximately
US$2.4 million gross. At the time of
publication, operations were underway
for the drilling of a 5,000 feet plus
lateral at the Jack Howe #1H location.
10  SUN RESOURCES ANNUAL REPORT 2014