Sterling Resources Announces Another Successful Well at Cladhan: Oil Column Continues to Grow
By Sterling Resources Ltd., PRNEMonday, April 11, 2011
CALGARY, Alberta, April 12, 2011 - 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 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
Mike Azancot, President and Chief Executive Officer, Phone: +44-1330-826764, Mobile: +44-7740-432883, mike.azancot at sterling-resources.com ; David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile:+44-7771-740804, david.blewden at sterling-resources.com ; George Kesteven, Manager, Corporate and Investor Relations, Phone: +1(403) 215-9265, Fax: +1(403) 215-9279, george.kesteven at sterling-resources.com
Tags: Alberta, April 12, Calgary, Sterling Resources Ltd., United Kingdom