CALGARY, Alberta, April 12, 2011 /PRNewswire/ -- Sterling Resources
Ltd. ("Sterling" or the "Company") (TSXV: SLG) is pleased to
announce the successful drilling of an additional well at Cladhan
located on Block 210/30a in the United Kingdom North Sea. This is
the first well of the current three well campaign to further
appraise the extent of the Cladhan reservoir.
The successful well, 210/30a-4, is located 1.1 kilometers
southeast and 749 feet downdip of the most recent appraisal well
210/29a-4y, and was drilled utilizing the Transocean Prospect rig
from a centrally positioned location, which was selected in order
to drill three bottom hole targets without the need to relocate the
rig. The objective of the 210/30a-4 well was to test the eastern
extension of the northern channel system and to establish an oil
water contact.
The 210/30a-4 well was drilled to a total measured depth (MD) of
12,252 feet having encountered two separate reservoir zones. The
basal reservoir has a gross vertical reservoir interval of 256
feet, containing a minimum net pay of 21 feet (pending final log
analysis) with porosity up to 20 percent. The net to gross
encountered here, whilst lower than the exceptional values
experienced in the 210/29a-4z well which was located in the centre
of a channel sequence, is within the typical range predicted in the
geological model for this type of interbedded sand/shale system.
Pressure measurements taken within the basal reservoir zone confirm
continuity with the updip wells drilled in the northern channel
during 2010. No oil water contact has been observed and
consequently the minimum effective vertical oil column is currently
1,228 feet.
In addition to the basal reservoir, the 210/30a-4 well also
encountered a younger oil bearing sandstone with 13 feet of net pay
contained within a separate pressure system. "Although further work
is required to delineate these reservoir sequences, the results
from this well and recent seismic inversion tests provide
encouragement that these sands will thicken downdip within the fan
area to the east," stated David
Findlater, Sterling's Vice President for Exploration UK.
"The excellent results from this well continue to increase the
size of the northern channel reservoir at Cladhan," stated
Mike Azancot, Sterling's President
and CEO. "With these very encouraging results, and given the
continuing height of the oil column, the next planned well will be
a sidetrack 1.8 kilometers to the southeast of the 210/30a-4 well,
targeting what is believed to be a turbidite fan system located
even further downdip. Once this second well of the current campaign
is completed in approximately 20 days, we then intend to drill a
second sidetrack well into an as yet undrilled channel system, the
Central channel. We are clearly proceeding on track with our
appraisal of the field and enhancing our understanding of the
reservoir to determine the optimum development case," added Mr.
Azancot.
Sterling holds a 39.9 percent interest in Cladhan and is the
operator of the License P1064. Partners are Wintershall (UK North
Sea) Ltd. 33.5 percent, Encore Petroleum Ltd. 16.6 percent and Dyas
UK Ltd. 10 percent.
We would also like to report the results of the Grian well
48/28b-2, which was completed in March. The well encountered good
quality Leman Sandstone at a total measured depth of 6,148 feet,
however the well failed to find gas and was plugged and abandoned.
Drilling the Grian well has now fulfilled all license commitments.
Sterling holds a 57 percent interest and is operator of the License
P1540. The remaining 43 percent is held by partner GB Petroleum
Ltd.
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: +44-1330-826764, Mobile: +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