CALGARY, Alberta, June 3, 2011 /PRNewswire/ --
Sterling Resources Ltd. ("Sterling" or the "Company") (TSXV:
SLG) announces the completion of drilling of the 210/30a-4X well on
Block 210/30a in the United Kingdom North Sea. This is the fourth
well (third side-track) drilled in the current four well campaign
to further appraise the extent of the Cladhan reservoir.
The 210/30a-4X well was drilled in the most southern limit of
the northern core area in a potentially separate channel, utilizing
the Transocean Prospect rig. The objectives of the 210/30a-4X
sidetrack well were to core the full reservoir section
approximately one kilometre south and approximately 60 feet updip
of the oil bearing 210/30a-4 well, and evaluate the southern fringe
of the northern core area.
The 210/30a-4X well was drilled to a total measured depth (MD)
of 10,614 feet encountering 171 feet gross, 105 feet net (vertical
thickness) of high quality Upper Jurassic sands. Almost 180 feet of
core was successfully recovered across the full reservoir
section.
Petrophysical analysis of the interval showed five feet of
oil-bearing sand at the top of the interval with an Oil-Down-To at
10,177 feet True Vertical Depth Subsea (TVDSS). An oil sample was
obtained from the interval. A further 100 feet of water-bearing
sand was encountered below thin shale which separates the top and
bottom sands. A clear contact has not been observed although the
top and bottom sands appear to be in pressure communication. The
presence of a known Oil-Down-To bodes well for updip oil in other
channels with the same pressure regime.
Generally, reservoir quality is very good with porosities up to
25 percent, substantiated by measurements obtained while taking
fluid samples. These pressure measurements also confirm that the
interval is over-pressured on trend with the 210/30a-4Y well, but
some 900 psi lower than the discovery area. The implication of this
information is that the southern fringe of the northern channel
area is in communication with the central channel, being distinct
from the main reservoir in the northern channel area. The well will
be suspended for possible re-use as a future development well at
this location or elsewhere after a sidetrack. With the completion
of this four well drilling campaign, RPS Energy will start a review
of the Cladhan resources with the intent of publishing an update
report within a few weeks.
"Notwithstanding the presence of predominantly wet sands at this
depth in this separate channel compartment, we are encouraged by
the presence of oil in the top sand and by reservoir quality at
this location. Further updip prospectivity is certainly promising,"
remarked John Rapach, Sterling's
Chief Operating Officer. "We have proved that our current seismic
model can adequately predict sand thickness but reservoir quality
definition is now paramount for further appraisal and development
drilling. Our next planned subsurface activity is to complete full
reprocessing and interpretation of the existing seismic dataset
incorporating all of the log, core, fluid and pressure results
obtained during this current drilling campaign. Consequently, the
next drilling campaign will probably commence in early 2012," noted
Mr. Rapach.
"Our development planning is concentrating on either a subsea
tie-back or FPSO development of the main northern core area with
further definition of reserves and resources during our next
drilling campaign. We are commencing pipeline route and
environmental survey work within the next few weeks," added Mr.
Rapach.
Mike Azancot, Sterling's Chief
Executive Officer, commenting on these results noted that: "The
current exploration and appraisal drilling campaign on Cladhan has
been successful in increasing the height of the oil column by 798
feet to 1228 feet in total. The extent of the development of the
northern core area is now better defined with this increase in oil
column. The fan area in the east of the field remains prospective
as the results from the 210/30a-4Z well drilled in this campaign
are not conclusive due to its proximity to a major fault. Our plan
towards development with options for increased resource
exploitation after further drilling is now underway with a target
for first oil in 2014."
Sterling holds a 39.9% interest in license P1064 which contains
Cladhan, and is the operator. The partners are Wintershall (UK
North Sea) Ltd. with 33.5 percent, Encore Petroleum Ltd with 16.6
percent and Dyas UK Ltd with 10.0 percent.
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.
Filer Profile No. 00002072
Forward-Looking Statements
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: +44-7740-432883,
mike.azancot@sterling-resources.com
David Blewden, Chief Financial Officer, Phone: +44-1330-826766,
Mobile: +44-7771-740804, david.blewden@sterling-resources.com.
George Kesteven, Manager,
Corporate and Investor Relations, Phone: +1(403)-215-9265, Fax:
+1(403)-215-9279, george.kesteven@sterling-resources.com