The Sun Resources (ASX: SUR), Raisama (ASX: RAI) and Carnarvon Petroleum (ASX: CVN) joint venture at the L20/50 onshore concession in Thailand will now move drilling to Krai Thong.
Krai Thong is the second of three potential well sites, which is estimated to have a gross speculative potential resource of 37 million barrels.
Tapao Kaew, the first of prospects in the JV, has been plugged and abandoned, with Peak Oil and Gas, a subsidiary of Raisama, free-carrying Sun through its share of the well.
A potential 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.
A major benefit for potential early cash flow 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.