Sterling Resources Announces Results of Second of Four Well Cladhan Appraisal Program
By Sterling Resources Ltd., PRNEWednesday, May 4, 2011
CALGARY, Alberta, May 5, 2011 - 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 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
.
Tags: Alberta, Calgary, May 5, Sterling Resources Ltd., United Kingdom