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.
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: +44-1330-826764, 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.kesteven@sterling-resources.com