The Sun Resources (ASX: SUR), Raisama (ASX: RAI) and Carnarvon Petroleum (ASX: CVN) joint venture at the L20/50 onshore concession has spudded the first well.
The joint venture potentially will continue over three wells.
The first well, Tapao Kaew-1 is part of the Tapao Kaew prospect targeting an gross speculative potential resource of 21 million barrels.
The Tapao Kaew-1 well will test up to three separate mapped horizons between 700 metres to 1715 metres.
A major benefit for potential early cashflow is any discovery at L20/50 can be very quickly commercialised with crude oil transported by truck to one of Thailand’s nearby oil refineries for sale.
Peak Oil and Gas, a subsidiary of Raisama, will free-carry Sun through its share of the Tapao Kaew.
The second well site, Krai Thong, is estimated to have a gross speculative potential resource of 37 million barrels.
The third well site, Chalawan, is estimated to have a gross speculative potential resource of 32 million barrels.
Sun will maintain a significant 42.5% interest in L20/50 following farm-out to Peak.
Each well will take approximately two-three weeks to drill and complete.