Sun said it had agreed with Richland and Amerril to drill and complete a horizontal well in the Woodbine formation which will be named Beeler-1H.
The well will be drilled to depth of about 7000 feet, with the horizontal drain hole length expected to be about 6500 feet and is expected to be fracture stimulated over 28 stages.
Prior to drilling the horizontal section the interval from the top of the Austin chalk formation to the base of the Georgetown formation will be logged to identify any potential oil zones in the interval.
Sun said the acreage was adjacent to the Gresham A-1H horizontal well which has produced 105,070 barrels of oil since being brought onstream in February this year, and is currently averaging about 600 bpd of production.
Beeler-1H will be drilled from the top hole location in a south-east direction, which Sun noted was a similar orientation to Gresham A-1H and supported technically by the regional fault trends.
Thewell is scheduled to spud on 17 August, about 6.8 kilometres north-west of Gresham A-1H, and is expected to take about 41 days to drill and complete.
Beeler-1H is expected to cost about $7.6 million, 50% of which will be carried by operator Richland while Amerril and Sun will each bear 25% of the costs.