CALGARY, Alberta, October 19, 2010 /PRNewswire/ -- Sterling
Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased
to announce updated Contingent and Prospective Resource numbers
(100 percent) for the Cladhan discovery (UKCS Blocks 210/29a and
210/30a) as a result of recently announced drilling success of two
sidetracks from the original discovery well 210/29a-4. These
Contingent and Prospective Resource figures (100 percent) have been
evaluated by RPS Energy as at October 15,
2010.
P50 Contingent Resources have increased from 30 million barrels
Oil in Place (OIP) to 89 million barrels OIP.
Unrisked Contingent (1) Resources (100 percent)
MMbbls OIP P90 (1C) (3) P50 (2C) (3) P10 (3C) (3)
At December. 31, 2009 12 30 76
At October 15, 2010 43 89 155
P50 Prospective Resources have increased from 65 million barrels
OIP to 93 million barrels OIP in the previously assessed terrace
area. An additional 74 million barrels OIP of P50 Prospective
Resources is attributable to an area off the terrace and in a fan
system to the east previously not assessed by RPS Energy.
Unrisked Prospective (2) Resources (100 percent)
MMbbls OIP P90 (Low Estimate) (3) P50 (Best Estimate) P10 (High
(3) Estimate)
(3)
At December 31, 2009 23 65 158
At October 15, 2010:
In Channels 44 93 168
In Fan 32 74 143
"These revised Contingent and Prospective Resources numbers
independently confirm the magnitude of our recent drilling
successes at Cladhan," stated Mike
Azancot, Sterling's President and CEO. "The significant
upward revisions from just two new data points in high quality
sands in which we have yet to find an oil water contact indicate
the large potential for Cladhan. Additional drilling will be
required to further delineate the size of this discovery," added
Mr. Azancot.
Subject to the completion of site survey work already in
progress, conclusion of the rig selection process and regulatory
approval from the UK Department of Energy and Climate Change
(DECC), the Company anticipates performing another drilling
campaign at Cladhan during the first quarter of 2011. The Company
is also initiating evaluation work for potential development
scenarios.
Sterling is the operator of Cladhan (License P1064) and holds a
39.9 percent working interest through wholly-owned Sterling
Resources (UK) Ltd. The other partners 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.
1. Contingent Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economic, legal,
environmental, political, and regulatory matters, or a lack of
markets. It is also appropriate to classify as Contingent Resources
the estimated discovered recoverable quantities associated with a
project in the early evaluation stage. Specific contingencies
preventing the classification of the resources as reserves are
further definition of resource volumes through further appraisal
drilling, regulatory approvals and sanction, and selection of a
specific field development concept, including the most viable crude
offtake delivery routing and oil sales contracts.
2. Prospective Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development.
3. The P50 or 2C is considered to be the best estimate of the
quantity that will actually be recovered. If probabilistic methods
are used there should be at least a 50 percent probability P50 that
the quantities actually recovered will equal or exceed the
estimate. Similarly, the 1C or P90 and 3C or P10 represent the low
and high estimates respectively.
As with all oil and gas fields at this early stage of appraisal,
there are significant positive and negative factors which may
impact the resource volumes for Cladhan. There is a significant
range of uncertainty associated with the resource volumes due to
variations in geological properties, reservoir petrophysical
properties and potential well flow rates in the undrilled portions
of the reservoir structure.
In the case of discovered resources or a subcategory of
discovered resources there is no certainty that it will be
commercially viable to produce any portion of the resources. In the
case of undiscovered resources or a subcategory of undiscovered
resources, there is no certainty that any portion of the resources
will be discovered. If discovered, there is no certainty that it
will be commercially viable to produce any portion of the
resources.
Sterling Resources Ltd. is a Canadian-listed international oil
and gas company headquartered in Calgary,
Alberta with assets in the United
Kingdom, Romania, and
France. The shares are listed and
posted for trading on the TSX Venture Exchange under the symbol
"SLG".
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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: +44-1330-826764, Mobile: +44-7740-432883,
mike.azancot@sterling-resources.co.uk
David Blewden, Chief Financial Officer, Phone: +44-1330-826766,
Mobile: +44-7771-740804, david.blewden@sterling-resources.co.uk
George Kesteven, Manager,
Corporate and Investor Relations, Phone: +1(403)215-9265, Fax:
+1(403)215-9279, george@sterling-resources.com