Sterling Resources Announces Drilling Results of the Ioana-1 Well and Confirms Active Gas System, Romanian Black Sea
CALGARY, Nov. 7, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or "the Company") announces the results of the exploration well on the Ioana prospect in Block 15 Midia in the Romanian Black Sea. The well was drilled to a total depth of 1,950 metres measured depth ("MD"), 1,513 metres true vertical depth subsea ("TVDSS"). Gas shows from drilling mud gas measurements were experienced from a depth of 500 MD down to total depth of 1,950 metres MD.
The primary objective identified by 2D seismic was encountered as prognosed with gas shows from drilling mud gas measurements over a 70 metre interval between 1,186-1,422 metres TVDSS. Analysis of the open-hole logs across this interval indicate that the formation comprises of thin-bedded sands within lower permeability siltstone and gas saturations similar to the siltstones present within the gas leg of the Doina and Ana fields.
Shallower sands of 55 metres thickness between 831-910 metres TVDSS with gas shows from drilling mud gas measurements were identified prior to setting intermediate casing. Only gamma ray and resistivity data from Logging-While-Drilling ("LWD") tools are available across this shallow zone, but cased-hole logs have been run to further evaluate these intervals and log interpretation of the shallower sandstone should be completed over the next few weeks.
"We are encouraged by the gas saturations in the primary objective, thereby proving up potential trap and gas sourcing to the structure," stated Patrick Whitley, Sterling's Vice President, International Exploration. "However, the reservoir development is poorer than expected in this up dip area of the prospect and will require further work with seismic and drilling to appraise the large Ioana structure further to the east," Mr. Whitley added.
The Ioana-1 well is situated on the western edge of a very large areal structure of some 150 square kilometres. The well location was selected at the deepest water depth location possible in which the only available jack-up drilling unit, the Grup Servicii Petroliere SA rig "GSP Jupiter", could safely operate. The Ioana-1 location was defined by 2D seismic data, which has proved successful for the Ana and Doina discovery and appraisal wells, but the complexity of the formations encountered in the Ioana-1 well now suggest that 3D seismic might be needed for reservoir thickness predictions and further drilling on this structure.
"We gave strong assurance to the Romanian government early this year, having received their approvals, to resume our long-awaited exploration of the Midia Block by drilling the Ioana-1 well as soon as possible in 2012," stated Mike Azancot, Sterling's President and CEO. "While the results from this first well on the prospect have not confirmed commercial resources, the extensive gas shows confirm the presence of an active gas system within the Ioana prospect. We will now be assessing the potential follow on program for the Ioana prospect for next year, which might commence with the acquisition of a 3D seismic survey over Ioana and other Midia Block prospects. Subject to contracting a drilling vessel rated to operate in deeper water (circa 100 metres), we would plan to drill in the most promising part of the Ioana prospect to the south east of the Ioana-1 well, where stronger seismic amplitudes and direct hydrocarbon indicators suggest a better quality gas-bearing reservoir (see Figures 1 and 2). In addition, we plan to drill exploration wells on one or more other prospects in the Midia Block. All of the above work will be subject to financing, regulatory and partner approvals," Mr. Azancot added.
The drilling of the Ioana-1 well is now complete and abandonment operations are being conducted. Following these operations the rig will be moved to the second exploration well location, Eugenia-1, some 70 kilometres to the north. This well will be the first to be drilled in the oil prone Pelican Block and is estimated to take approximately 30 days to complete.
Midia Resources SRL, a wholly owned subsidiary of Sterling Resources Ltd. (65 percent working interest), is the operator of the Midia and Pelican Blocks in offshore Romania, with partners Petro Ventures Europe BV (20 percent) and Gas Plus International BV (15 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 the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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 purposes other than for which it is disclosed herein.
Image with caption: "Figure 1: Ioana Prospect Map (CNW Group/Sterling Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20121107_C5661_PHOTO_EN_20245.jpg
Image with caption: "Figure 2: Ioana Seismic Section (CNW Group/Sterling Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20121107_C5661_PHOTO_EN_20246.jpg
SOURCE: Sterling Resources Ltd.
For further information:
visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, email@example.com
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, firstname.lastname@example.org
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, email@example.com