6 June 2013director officer appointment● Neutral
Non-executive director Dr Philip Linsley, a director for over 16 years, will retire from the Board effective 30 June 2013. He suggests the board could add a director with a US focus.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 June 2013drilling progress report● Neutral
Seale #1H has flowed back 26 days, recovering about 9% of frac water, with a peak oil rate of 61 bopd. Ellis #1H averages 172 bopd. Sun cites 10 nearby peer Lower Woodbine wells with strong results as de-risking the play.
6 May 2013drilling progress report▼ BadMajor
Seale #1H hit trouble: the drill bit broke off while drilling out plug seven and could not be retrieved. Only the first seven of 23 frac stages can flow, so a proportionally lower rate is expected. MD called it disappointing; T. Keeling frac follows.
19 Apr 2013drilling progress report● Neutral
Seale #1H frac is complete: 23 stages over 6,800 ft, with a week of clean-up before shut-in for the T. Keeling #1H frac, now expected by early May. John Beeler #1H jet pump installed; Beeler #1H awaiting its pump; Ellis #1H optimisation continues.
16 Apr 2013investor presentation● Neutral
Managing Director's symposium presentation restates the Woodbine tight oil focus, ~20,000 net acres and seven wells drilled since the late-2012 $20M raise. Cash was $5.3M (unaudited, 31 March 2013), down from $8.3M at December; 1.98B shares, $100M market cap at 5 cents.
15 Apr 2013other● Neutral
Administrative notice: Sun has moved its head office to Level 2, 30 Richardson Street, West Perth, from 15 April 2013. The postal address is unchanged.
5 Apr 2013drilling progress report▲ Good
Ellis #1H's jet pump lifted oil rates, with hourly peaks of 15-18 barrels of oil, equal to 360-432 a day if sustained, not yet stabilised. Seale #1H's 17-stage frac has begun, with T. Keeling #1H to follow. Both fracs are expected by end April.
21 Mar 2013drilling progress report▲ Good
Ellis #1H is back on oil production after a hot oil treatment, and a jet pump is installed and being commissioned. It flowed up to 700 barrels of fluid a day with up to 40% oil. Seale #1H lateral is drilled to 15,277 ft, with frac next.
20 Mar 2013director officer appointment● NeutralMajor
Dr Govert van Ek, formerly CEO of Spyker Energy, is appointed Managing Director on a A$390,000 salary and 30 million options. Matthew Battrick moves to Executive Director (Technical). Board says Sun is evolving from explorer to producer.
15 Mar 2013half year report▼ Bad
Half-year to 31 December 2012 shows a net loss of $5.65M, against $2.65M a year earlier. It flags that unpaid contractors of the former Richland operator could lodge liens over the leases, a possible contingent liability for Sun's share.
5 Mar 2013joint venture update▼ BadMajor
Amerril replaces Richland Resources as operator of the Richland project to finish pump installations; all four wells are shut in awaiting pumps. Seale #1H is being sidetracked after hole instability below about 7,400 ft, delaying its frac by about two weeks.
1 Mar 2013other● Neutral
S&P Dow Jones index rebalance notice. Sun Resources (SUR) is listed as an addition to the All Ordinaries index from 15 March 2013. No operational or financial change for the company.
19 Feb 2013drilling progress report● Neutral
Richland wells are being fitted with pumps: a jet pump on Ellis #1H, called the most successful well, and a rod pump on Beeler #1H, with John Beeler wells shut in. About 7,000 barrels of oil produced from the three laterals to end January (gross). Seale #1H is now first to be fracced.
24 Jan 2013drilling progress report● Neutral
Beeler #1H flow-back is suspended by paraffin build-up, with fluid recovery still about 10%. John Beeler #1H made roughly 178 barrels of oil a day in one 24-hour period (not stabilised). T. Keeling #1H reached 14,400 ft; Seale #1H spudded 19 January.
11 Jan 2013investor presentation● Neutral
Corporate briefing for Hartleys Perth and an AACC Houston conference restates the Woodbine footprint of 20,020 net acres (29,084 gross), ongoing flow-back and drilling, and talks with potential farm-in partners for Delta and Amerril. Cash was $8.3M (unaudited, 31 Dec 2012). Mostly known facts.
10 Jan 2013drilling progress report● Neutral
Beeler #1H fluid recovery is still only near 10%, so no initial flow rate yet; John Beeler #1H is at about 18%. Ellis #1H frac is underway, finishing by 18 January, with the other wells shut in. T. Keeling #1H is drilling at 13,976 ft.
24 Dec 2012asset acquisition disposition▲ GoodMajor
Sun bought a further 1,184 acres for the Delta project from existing cash, lifting Delta to 11,820 net acres (100% WI) and total Woodbine footprint to 20,020 net acres, reaching the low end of its 20,000-25,000 target. No price stated.
21 Dec 2012drilling progress report● Neutral
Seale #1 is cased and T. Keeling #1H has spudded and is drilling toward its intermediate casing point. Completion of all three Amerril wells is now estimated late March 2013, from mid-February earlier.
20 Dec 2012drilling progress report● Neutral
Beeler #1H has recovered only about 10% of frac fluid; 20-25% is needed for a reliable flow rate, so still no result. John Beeler #1H (31 stages) and John Beeler #2 (6 stages) are fracced; Ellis #1H frac due by 12 January.
6 Dec 2012drilling progress report● Neutral
Beeler #1H is flowing oil at increasing rates during clean-up, but no initial production rate yet. John Beeler #1H's 37-stage frac has begun; Ellis #1H frac slips again to late December.
22 Nov 2012drilling progress report● Neutral
Beeler #1H frac finished (27 stages over 6,100 ft lateral); 12-16 days of flow-back to follow before a flow rate is known. John Beeler #1H frac starts next week; Ellis #1H frac slips to mid-December.
22 Nov 2012drilling result▲ GoodMajor
Seale #1 vertical on the Amerril project reached 9,938 ft; logs show potential pay in five stacked formations, about 670 ft gross, with strong oil in the Middle Woodbine. Sun holds 50%. Not a flow test; fracing planned mid-February 2013.
8 Nov 2012drilling progress report● Neutral
Beeler #1H's frac is now due to finish mid-November after remedial work, slipping from about 6 November. Ellis #1H reached 14,902 ft with over 7,500 ft of lateral; John Beeler #1H is cased awaiting a second frac crew. No flow rates yet.
8 Nov 2012investor presentation● Neutral
AGM chairman's address and presentation restate the Woodbine focus, almost 28,000 gross acres and four deals in 15 months. Chairman says market cap rose from about $25M to about $140M since the last AGM. Mostly known facts.
5 Nov 2012drilling spud▲ GoodMajor
A three-well Woodbine program began on the Amerril Oil Project, with the Seale #1 vertical spudded 4 November. Sun holds 50% and pays about US$1M net for this first well. Completion of all three wells is estimated by mid-February 2013.
1 Nov 2012drilling progress report● Neutral
Beeler #1H's 26-stage frac is underway and due to finish next Tuesday, then flow-back. John Beeler #2 is cased ready to frac. Ellis #1H is drilling its lateral at 12,511 ft. John Beeler #1H completion is expected by 15 November. No flow rates yet.
30 Oct 2012asset acquisition disposition● NeutralMajor
Sun agreed to sell its 9.25% interest in the WA-47-R retention licence (Sage oil discovery) to a Hydra Energy subsidiary. Subject to joint venture and regulatory approvals; no price stated. Continues the exit from its older international assets in favour of the Woodbine.
29 Oct 2012investor presentation● Neutral
Investor briefing restating the Woodbine strategy, 18,836 net acres, four deals in 15 months and the multi-well program. It shows cash of $15.4M, 1.87B shares and market cap $141.4M at 7.6c. Says a 26-stage frac is underway on Beeler #1H. Mostly known facts.
29 Oct 2012farm in farm out agreement▲ GoodMajor
Carnarvon and Sun farmed out 100% of Thailand's L20/50 to Siam Moeco (Mitsui subsidiary) with no further commitments. They get US$8.5M on commercial production and a 2% royalty capped at US$10M. Carnarvon states Sun's interest is 45%, versus 42.5% earlier. Follows the two dry wells.
22 Oct 2012asset acquisition disposition▲ GoodMajor
Sun bought a 50% interest in the 3,652-acre Normangee Oil Project (1,826 net acres) for US$3.3M from existing cash; Amerril took the other 50%. Sun's Woodbine footprint rises from 17,010 to 18,836 net acres, with a 20,000-25,000 net acre target.