The Perth-based company also said Empyrean Energy has farmed-in to the drilling of six of the shallow oil and gas prospects and has the option to participate in further drilling.
The JV partners – Sun Resources, Victoria Petroleum and Houston-based Wandoo Energy – have been working on the interpretation of 530 square kilometres of 3D seismic data, which forms the basis of Project Margarita.
Sun Resources said over 60 leads have been recognised in prospective stratigraphic/structural settings at various depths ranging from 1000-4000m at the project.
Further seismic reprocessing and seismic attribute analysis has resulted in a prospect inventory, which has a “high probability outcome of success” on drilling, the company said.
The six prospects have 8-10 billion cubic feet of gross potential outcome, Sun Resources added.
The initial six wells, due to begin drilling on or near December 15, are expected to take eight to 10 days to reach total depth.
The program will be followed by a “final wells” drilling program, planned to begin early February 2007.
Meanwhile, under the farm-in agreement with Empyrean, the company will also have an option to farm-in to the drilling of three of the deep prospects once the six-well program is completed.
Empyrean will contribute to well funding and earn equity from each of the operating US subsidiaries of Sun Resources, VicPet and Wandoo.
Wandoo in turn will be partly carried on the drilling and completion from Sun Resources and VicPet.
Following the farm-in agreement final equity in the Wandoo JV will be Sun Resources with a 20% stake, VicPet (20%), Wandoo (16%) and Empyrean (44%).