Bowsprit Farm-in Opportunity- Proven Oil with Exploration Upside

Sun Resources NL is seeking a partner (or Partners) to participate in the appraisal drilling of a shallow water (12ft), low cost, proven oil project in Q1 2020.

Highlights
• Low risk appraisal /development with exploration upside
• Well Cost – US$3.6 million (success case) ~ US$2.8 million (dry hole)
• Low OPEX, high margin potential.
• Apprisal / development of 250-1MMbbls (2C contingent resources)
• Exploration for futher Prospective Resources (Best case)1
o ~ 4MMbbls (Sand 1)
o 15 bscf + condensate (Sand 2)

The primary target reservoir produced 76,000bbls of oil in the 1960’s from 4 vertical wells. The Upper Miocene reservoir contains a 20-50ft oil column, that was relatively thin and sub-commercial to develop with vertical wells in 1960’s. Sun intends to drill a horizontal well between the former producers and expects intial production of ~2,000bopd that can be rapidly developed and produced via tie back to a nearby production facility. The well is anticipated to recover 250,000- 1MMbbls of oil. From 1.6-3MMbbls STOIIP1.

The same well will will test an additional two prospective fault closure sands via the vertical pilot hole.
The prospective sands are estimated to have respectively ~13.5MMbbls of STOIIP and 21Bscf GIIP (prospective, deterministic, Best Case scenario)1

Sun is seeking to cover 66%-75% of the drilling cost via farm out, and fund the balance of the drilling as Operator.