United States of America
Sun Resources is following and delivering a strategy of building up significant cash flow in the USA Onshore Gulf Coast and then applying these funds to develop and participate in larger scale, high impact projects, particularly in SE Asia.
The USA offers excellent investment opportunities to small companies because:
* A demand supply imbalance of a large market for energy exists
* Ready access to infrastructure, even for smaller discoveries
* Lower technical risk within prolific hydrocarbon bearing basins
* Low exploration & development costs by world standards for onshore projects
* High energy pricing in particular for gas.
Gas prices varied within a range of US$6 to 8 per mscf during 2007 and 2008, reflecting the use of gas for heating, and are generally 2-3 times the price received for gas within Australia. Gas price is a reflection of the current (and growing) 4 trillion cubic feet (“tcf”) pa gas imports over 19 tcf pa gas production (23 tcf pa gas consumption). Gas price is also being underpinned by the prospect of increased importation of liquefied natural gas (“LNG”) to satisfy demand. Gas prices peaked at US$13 per mscf during 2008, collapsed to US$3 per mscf in early 2009 (during the Global Financial Crisis) but now has recovered to the range of US$4.50-$5.50 per mscf.
North American Energy Consumption
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Sun Resources current exploration and production emphasis is on both oil and gas in conventional geological settings and within conventional reservoirs, principally located on the South Texas Gulf Coast (Flour Bluff Gas Project, Projects Margarita, Redback and Meek) and Louisiana Gulf Coast (Lake Long Project). Recent drilling has been successful on Gulf Coast, South Texas and Louisiana USA projects, generating up to US$2mm net revenue in 2009, to provide significant cash flow to fund the Company’s exploration activities.
Project Interest USA Planned 2008 Drilling
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Click Here to view Flour Bluff Project, South Texas
Click Here to view Margarita Project, South Texas
Click Here to view Redback Project, South Texas
Click Here to view Lake Long Project, Louisiana