CALGARY, Alberta, April 12, 2011 /PRNewswire-FirstCall/ -- 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
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, [email protected]
David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile: +44-7771-740804, [email protected]
George Kesteven, Manager, Corporate and Investor Relations, Phone: +1-403-215-9265, Fax: +1-403-215-9279, [email protected]
SOURCE Sterling Resources Ltd.