CALGARY, Alberta, February 17, 2011 /PRNewswire/ -- Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce that drilling is expected to commence within the next few days at both Cladhan (Blocks 210/29a & 210/30a) and Grian (Block 48/28b) in the UK North Sea, as drill rigs are currently being towed to the respective sites. At the Cladhan discovery, at least one well and a sidetrack will be drilled utilizing the Transocean Prospect semi-submersible rig, with Sterling as operator holding a 39.9 percent working interest. Partners in Cladhan (license P1064) are Wintershall (UK North Sea) with a 33.5 percent working interest, Encore Petroleum Ltd. with a 16.6 percent working interest and Dyas UK Ltd. with a 10 percent working interest.
"We're certainly pleased to be back drilling after the successful autumn campaign in 2010," stated John Rapach, Sterling's Chief Operating Officer. "Our production test of the 210/29a-4Z well at 5900 barrels of oil per day and then finding oil down dip of that well with the 210/29a-4Y sidetrack have given Sterling and its partners the encouragement to advance an accelerated appraisal drilling program. We have managed to prepare to drill the next well, 210/30a-4 within seven months of re-entering the original discovery well 210/29a-4, in August 2010," Mr. Rapach added.
The objective of the current program is to drill further down dip, again looking for deeper oil in the structure to the east of the previous wells. This will be followed by a sidetrack to a second location to an undrilled channel further south of the current well penetrations. Assuming success with both of these wells, there is an option for the Transocean Prospect to drill a second sidetrack from the same well out into the fan system. Information from this drilling campaign will aid in the planning of the field development conceptual design already underway. The expected drilling time for these three wells is 40 days, 25 days and 30 days, respectively.
The Grian prospect in the UK Southern North Sea, located immediately to the west of the producing Hewett gas field, will be drilled using the Ensco 80 jack up rig, with Sterling as operator currently holding a 57 percent working interest with partner, GB Petroleum Ltd.
In addition to Sterling's operated drilling activity, well 42/13a-6 is currently being drilled on the Breagh field by operator RWE Dea. This well is intended both to appraise the eastern side of the field and to be tied-back as a production well. Results are expected within the next few weeks.
"The commencement of these wells signals the beginning of an ambitious operated 2011 drilling campaign for Sterling," stated Mike Azancot, Sterling's President and CEO. "As well as Cladhan and Grian, we have a very exciting program of operated exploration and appraisal wells internationally in the second half of 2011. We look forward to drilling offshore Romania on the Eugenia and Ioana prospects (Sterling 65 percent), offshore Netherlands on an existing oil discovery in the F Quad (Sterling 50 percent) and onshore Romania in the Craiova license (Sterling 50 percent) on the Plenita prospect and to a deeper target with shale gas potential. All these wells target significant oil or gas resources capable of providing considerable growth potential across the portfolio."
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 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:
visit http://www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: +44-1330-826764, Mobile: +44-7740-432883, firstname.lastname@example.org
David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile: +44-7771-740804, email@example.com
George Kesteven, Manager, Corporate and Investor Relations, Phone: +1-403-215-9265, Fax: +1-403-215-9279, firstname.lastname@example.org
SOURCE Sterling Resources Ltd.