Margarita, South Texas
(20 to 37.5% Interest)

Sun Resources holds a 37.5% working interest in the Margarita Project a joint venture with Wandoo Energy LLC who has exclusive access to a 530 km2 3D seismic date base in a South Texas County.  Basis of the joint venture is geological conceptual thinking with 3D seismic data to generate significant targets for drilling and hopefully make new discoveries.  

Shallow gas prospect generation
from 3D seismic applitudes, Project Margarita

 

       

Dona Carlotta gasfield               Milagro oilfield       
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Historic production and plays in the project area and environs are Frio and Vicksburg sands at <2,000 metres depth and deeper Yegua and Wilcox sands between 2,000 and 4,000 metres depth. The Yegua and Wilcox are under explored with only 5 wells >2,400 metres drilled within the 530 km2 3D seismic area, with 4 of these drilled prior to the 3D seismic.  These prospects are the high upside of the project.  

Shallow Prospects

A shallow well program mostly funded by farmee, Empyrean Energy PLC, was carried out on Frio and Vicksburg prospects over the period December 2006 to July 2007.  A 50% commercial success rate was achieved with the 6 wells drilled, notwithstanding all wells flowed hydrocarbons to the surface. Two gas fields (Agavero and Dona Carlota) & an oil field (Milagro) were discovered & were tied into sales facilities by the end of September 2007. These fields have since depleted.  The F1 prospect was drilled and completed as a gas producer (JSGU#1) in October 2008 with an initial flowrate of 0.25 mmcfgd. A further prospect (TB18) will be drilled when leasing is completed.

Deep Prospects

Four Wilcox prospects (Cazadores, W2A, W2B and W3) and three Cook Mountain prospects (Agave, CM1 and C2R) are now in the deep gas prospect inventory having potential unrisked recoverable volumes in each formation of up to 208 bcf. These prospects are the high upside of the project. The Cazadores Prospect (20 to 61 bcf) is the most advanced and land has been leased.  Seismic attributes indicative of hydrocarbons conform to target Wilcox sands in structure on the 3D seismic. The prospect is 3.5 kms down dip from the Diebel #1 well which had tight log gas pay in the equivalent target sands, but because of the then low gas prices was never fracced and flow tested. The joint venture is currently generating farmin interest for drilling in 2012. 

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