CALGARY, Alberta, March 8, 2011 /PRNewswire/ -- Sterling Resources Ltd. ("Sterling") (TSXV: SLG) is pleased to announce that it has executed reciprocal agreements with Valiant Petroleum plc to facilitate the exchange of certain North Sea assets. The transaction, which is subject to a number of conditions precedent, including the approval of the Department of Energy and Climate Change (DECC), will result in Sterling acquiring a 25 percent interest and operatorship of Blocks 210/29c and 210/30b in the Northern North Sea. In exchange, Valiant will obtain a 40 percent interest in Sterling's Central North Sea licenses in Blocks 21/30f and 22/26c, which have been offered for award to Sterling in the most recent 26th UKCS licensing round.
Blocks 210/29c and 210/30b are adjacent to Blocks 210/29a and 210/30a in which Sterling as operator has discovered and is currently delineating the Cladhan field. In addition to Sterling (25 percent), and Valiant Exploration Limited (30 percent), the other remaining partners in Blocks 210/29a and 210/30b will be Wintershall UK North Sea Ltd. (25 percent) and Agora Oil and Gas UK Ltd. (20 percent) on completion of the transaction.
"We are glad to be partnered with Valiant in the Central North Sea licenses which contain a number of exploration and appraisal opportunities which both parties are keen to evaluate," stated Mike Azancot, Sterling's President and CEO. "Increasing our involvement in the greater Cladhan area is of significant importance as we continue to determine the extent of the hydrocarbon potential adjacent to the discovery in our current licenses to the North and West. We are assessing the possibility of drilling a well in a mapped southern channel later this year on the Blocks acquired through this transaction," added Mr. Azancot.
Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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All statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.
These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the press release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.
Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this press release should not be used for purpose other than for which it is disclosed herein.
For further information:
For further information: visit http://www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: +44-1330-826764, Mobile: +44-7740-432883, email@example.com
David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile: +44-7771-740804, firstname.lastname@example.org
George Kesteven, Manager, Corporate and Investor Relations, Phone: +(403)215-9265, Fax: +1(403)215-9279, email@example.com
SOURCE Sterling Resources Ltd.