Sun Resources told the market yesterday that the partnership expected to be formally awarded the oil-prospective block at a signing ceremony in Bangkok later this month, paving the way for exploration activities to begin.

“The official award of highly prospective block L20-50 has been made and accepted by the joint venture,” the company said.

“Sun Resources looks forward to the commencement of an aggressive exploration program under Carnarvon’s operatorship on the very lightly explored, southern portion of the highly prospective and productive Phitsanulok Basin, which will hopefully lead to early drilling success.”

The company said the L20-50 block contained the potential for early cashflow from a re-drill or work over of an old shut in well in the block.

“This well was not brought on production at the then time of prevailing low oil prices because it required artificial lift to bring the oil to surface and this higher cost production methodology was not considered by the operator,” the company said.

The L20-50 block is in the southernmost part of Thailand's most prolific basin, the Phitsanulok Basin.

Carnarvon and Sun Resources have reported that this lightly-explored basin was geologically analogous to the nearby Phetchabun Basin, which Carnarvon and Pan Orient Petroleum had successfully explored over the past 12 months.

The Phitsanulok Basin also contains the Sirikit field, the country's largest onshore oil and gas accumulation with more than 200 million barrels of oil.