The company said highlights of the second quarter included intersecting a number of gas saturated zones in the Overston-2a appraisal well; the completion of the Sunnybank 6 oil well, increasing proved & probable gas reserves and signing a new gas sales contract for the Roma Shelf and; increasing working interest levels in a number of prospective permit areas.

Sunnybank-6 was completed as an Upper Rewan oil producer during the quarter. After three hours of flow the well stabilised at 630 BOPD along with 1.5 MMscf/d of gas. Initial free flow oil rates into a tank were subsequently encouraging however, additional production will now be subject to the operator sourcing a pump. Further work will need to be carried out to determine the size of the oil pool which Sunshine said as yet was unknown due to the complex stratigraphic nature of the trapping mechanism.

A preliminary logs from Overston-2a indicated the Tinowon Sandstone section above the Wallabella Coal appeared to be relatively tight, based on the initial flow test results.

Sunshine said the section below the Wallabella Coal appeared to have better reservoir characteristics with log gas pay interpreted by the operator over a number of zones. Additional work is needed. A cased hole logging suite was run to ascertain the source of gas leaking into the casing as well as to confirm the quality of the cement bond with the casing. Testing will now most likely occur late in the third quarter once a work-over rig is secured, however these are in short supply.

Sunshine said its third quarter will be a time of high activity with the planned testing of multiple zones in Overston-2a; increased levels of gas production and operational work in the Roma Shelf (seismic acquisition and a five well pilot) and its eleven well program.