All That Investors Need to Know About Conventional Oil-Focused Explorer, Sun Resources

Based in Perth, Western Australia, Sun Resources NL (ASX: SUR) is an oil & gas exploration and development company with key assets in the state of Louisiana, United States. The company, which got listed on the Australian Stock Exchange in January 1992, focuses on assets that are anticipated to be commercially viable in the current environment of low oil prices.

The company has various wholly owned subsidiaries, including:

Leadership – Board & Management

A successful business is backed by its strong board & management team that brings a diverse range of skills and experience, enabling the company to move ahead with its vision. The board & management team of Sun Resources possesses high caliber technical, management and financial skills.

Let us take a look at the members of SUR’s board & management team:

Chairman and Non-Executive Director – Ian McCubbing

Serving as the Chairman of SUR since October 2016, Mr McCubbing holds over 30 years of corporate experience. Currently, he is serving on the board of several other companies including Avenira Limited, Swick Mining Services Limited and Symbol Mining Limited.

CEO and Managing Director – Alexander Parks

Appointed to his current position in November 2017, Mr Alexander Parks is an energy expert, holding more than 20 years of experience in the oil & gas industry. He has worked for markets including New Zealand, Australia, Europe, North Africa, North America and Southeast Asia.

Non-Executive Director – William Bloking

A leading energy expert, Mr William Bloking has been serving SUR since October 2016 and he has over 40 years of experience in the oil & gas industry. Mr Bloking has worked for big names in the industry like ExxonMobil and BHP Billiton Petroleum.

Non-Executive Director – Patrick Glovac

Joined SUR in August 2019 as a non-executive director, Mr Glovac is a well-respected mining executive and corporate financier. He is a co-founder of GTT Ventures Pty Ltd and is currently serving TAO Commodities Limited (ASX: TAO) and Global Vanadium Limited (ASX: GLV).

CFO/Company Secretary – Jo-Ann Long

Holding around 30 years of corporate experience, including 21-years of executive management experience, Ms Long joined Sun Resources in April 2018. She holds expertise and strong skills in fields like tax strategies, corporate law and commercial agreements.

Key Asset – Bowsprit Oil Project

With its focus on conventional oil projects, the company along with Singapore unlisted public company, Pinnacle Exploration Pte Ltd secured a new oil project in the inland waters of Louisiana in the United States in August 2017. The partners with an equal stake in the project named it, Bowsprit Oil Project.

In July 2019, SUR acquired the 50% interest in the project held by Pinnacle to move to 100% working interest and total control of the project on leases SL21754 & SL21787 covering 1,155 acres in Breton Sound Area. The surrounding areas have produced more than 1.2 billion barrels and 5 trillion cubic feet.

The Bowsprit lease overlies a field that was initially developed by Royal Dutch Shell PLC in 1960s for deep gas, and the field is a re-development project with proven, conventional, good quality reservoir, light-sweet oil.

Based on the Conceptual Development plan, the company has assumed gross oil of 2.5 million barrels from 5 wells, with a breakeven oil price of approximately USD 30 per barrel. Meanwhile, RISC has modelled a 1,200-feet horizontal Bowsprit well at IP of 2,000 barrels per day of oil EUR of 670,000 barrels. Additionally, cost for a horizontal well has been estimated at USD 3.6 million.

SUR – Near Future Plans 

  • Raise funds to drill and/or farm out
  • Target drilling appraisal well in the first quarter of 2020, aimed towards proving the field potential
  • If the appraisal well is successful, the company would suspend the well as a future producer
  • Fund and design facilities by the end of the second quarter of 2020
  • Develop the field completely and achieve first oil potentially by the third quarter of 2020

SUR – Long Term Growth Plans 

  • Identification of new exploration and use new, cable-less 3D seismic for determining deeper fields
  • Use quantitative seismic interpretation techniques on regions that are yet to be covered by high resolution 3D seismic

Sun seeks to deliver project value for shareholders from its 100% holder and operator of a Low CAPEX, high margin, oil appraisal / development of the Bowsprit oil project.

Stock Performance: With a market cap of AUD 3.96 million and ~ 1.32 billion outstanding shares, the stock of SUR closed the day’s trading at AUD 0.002 on 20 September 2019. The stock has delivered an outstanding return of 200 per cent in the last three months.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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