Fresh EME Thread......

Some useful information on the area:







MARGARITA PROJECT, TEXAS, USA

In the December quarter 2005, Sun Resources strengthened its exploration activities in Texas, USA, on the highly prolific oil and gas prospective onshore Texas Gulf Coast through a ground floor Joint Venture with Wandoo Energy, LLC (“Wandoo”) on an extensive 2D and 3D seismic data base covering portions of four main producing trends on the onshore Texas Gulf Coast.

The Wandoo Joint Venture exposes Sun Resources on a ground floor basis to a large seismic data base for regional evaluation and generation of many prospects that offers a choice of drillable prospects of various risked size potential. The Company can mitigate the drilling risk by farming out a portion of its current 37.5% working interest and its further right to an additional working interest in prospects. Importantly, conditional on performance of the Joint Venture in the next financial year and by mutual agreement with Wandoo, Sun Resources will have the right but not the obligation to participate in further joint ventures with Wandoo on other Wandoo deemed prospective onshore or offshore 3D and / or 2D seismic data sets in the State of Texas.

The first specific project in the Wandoo Joint Venture is Project Margarita where over 40 leads and prospects have been recognised in prospective stratigraphic/structural settings at various depths ranging from 1,000 to 4,000 metres in 530 km2 of 3D seismic and are being systematically assessed for drilling. Historic production and plays in the project area and environs are Frio and Vicksburg sands at 2,400 metres have been drilled in the project area and were drilled pre 3D seismic. A number of the deeper high impact Wilcox targets to 208 billion cubic feet gas potential have been recognised.

A substantial land acquisition program by leasing is current on shallow and deep prospects in the prospect inventory. A six well, back to back, drilling program on shallow gas prospects with 8 to 10 billion cubic feet of gas potential outcome is scheduled over the period December 2006 to March 2007. This program will be a precursor to commencement of a drilling program on the more substantial individual deep 60 to 200 billion cubic feet gas potential prospects in June quarter 2007.

Regards,
Ed.