CALGARY, Alberta, May 5, 2011 /PRNewswire-FirstCall/ -- Sterling
Resources Ltd. ("Sterling" or the "Company") (TSXV: SLG) is pleased
to announce the completion of drilling of the 210/30a-4Z well on
Block 210/30a in the United Kingdom North Sea. This is the second
well (first side-track) drilled in the current four well campaign
to appraise further the extent of the Cladhan reservoir.
The 210/30a-4Z well was drilled at a location 1.6 kilometers
east and a further 1240 feet downdip of the most recent 210/30a-4
well, utilizing the Transocean Prospect rig from a centrally
positioned location. The objectives of the 210/30a-4Z sidetrack
well were to appraise the field further east of previous well
control and prove sand and oil presence in a fan system
considerably deeper than previous wells which have been drilled
into channel systems on a terrace structure.
The 210/30a-4Z well was drilled to a total measured depth (MD)
of 15,900 feet having encountered two separate Upper Jurassic
reservoir zones of 12 and 169 feet (vertical thickness) with oil
shows through both intervals. No oil-water contact was encountered.
Petrophysical analysis of the open-hole logs showed porosities up
to 13.5% but with a high degree of dolomitic cement. Pressure
measurements were attempted but not obtained.
"We have been able to prove-up a large depositional feature as
prognosed from our seismic interpretation and with hydrocarbons
quite deep in the structure," remarked John
Rapach, Sterling's Chief Operating Officer. "Our challenge
will be to understand the variation in reservoir quality in the
eastern area of the field. We are only half way through our current
campaign of drilling; the next well will target the central channel
and the final well will be drilled to the southern portion of
northern channel. These wells are planned into areas with similar
seismic characteristics that have already encountered movable
hydrocarbons. Success with these wells will build on our resource
base inventory and provide further information for our ongoing
development planning," added Mr. Rapach.
"While we would have preferred to see better quality sands in
what appears to be a large package of oil filled reservoir, this is
the first well into a deeper portion of the field and we have to
remember that we are still exploring in an area with little well
control," stated Mike Azancot,
Sterling's President and CEO. "As is usually the case in the early
phase of field appraisal, a number of wells are required to
delineate the field. The partnership is planning reprocessing of
current seismic data along with possible further seismic
acquisition, which should improve understanding of reservoir
quality variation. We still see much promise in this eastern fan
area and we will be updating the geological model potentially to
unlock significant prospectivity. Given that the first two wells of
the current campaign have still not encountered an oil-water
contact, the uncertainty of the prospective oil in place at least
in the terrace area has been significantly reduced and should be
further refined by the next two wells," added Mr. Azancot.
On completion of this appraisal campaign and following analysis
of all data obtained, the partnership intends to commission an
updated independent resource evaluation.
Sterling holds a 39.9% interest in license P1064 which contains
Cladhan, and is the operator. The partners are Wintershall (UK
North Sea) Ltd 33.5 percent, Encore Petroleum Ltd 16.6 percent and
Dyas UK Ltd 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 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.
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
SOURCE Sterling Resources Ltd.