Sterling Resources announces commencement of production at Breagh
CALGARY, Oct. 14, 2013 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling" or the "Company") is pleased to announce that first production from the Breagh gas field in the UK Southern North Sea commenced on Saturday, October 12th. Initial production was controlled to allow final plant proving and commissioning, before being ramped up to 97 million standard cubic feet per day (MMscf/d) from wells A01, A03 and A04. As wells A02 and A05 are fully brought on-stream, gross production is expected to reach 135 MMscf/d (net to Sterling 40 MMscf/d) during November 2013.
Sterling was awarded the licences at Breagh as operator on a 100 percent basis during the 22nd Seaward Licensing Round in 2004. The Company furthered the appraisal of the field drilling wells in 2007 and 2008, and undertook scoping work for the development. During 2009, RWE Dea UK acquired its current 70 percent interest in the Breagh gas field and became operator, with Sterling retaining the remaining 30 percent.
The Breagh field is located in UKCS blocks 42/12a and 42/13a of the Southern North Sea in 62 metres water depth, approximately 100 kilometres east of Teesside. Gas is exported via a 20 inch pipeline from the Breagh Alpha platform to Coatham Sands, Redcar on the UK mainland, and then to an 11 kilometre onshore pipeline for processing at the Teesside Gas Processing Plant (TGPP) at Seal Sands. The TGPP site is owned by North Sea Midstream Partners and after processing at the TGPP, the gas will enter the UK National Transmission System. Sterling's equity share of the gas is being sold at UK spot market price.
"The Breagh field is one of the largest natural gas discoveries under development in the UK Southern North Sea and is the first large scale production for Sterling. We look forward to bringing further gas through this major new infrastructure in the Southern North Sea with our own equity gas in Breagh Phase 2 and Crosgan, and from other potential developments surrounding the Breagh field area," stated John Rapach, Sterling's Chief Operating Officer.
"We are most appreciative of the patience of Sterling's shareholders over the past 15 months and are pleased to finally achieve this major milestone," stated Jake Ulrich, Interim Chief Executive Officer. "This is a transformational event for the Company and we now look forward to using Breagh's cash flow to accelerate value realization for shareholders," he added.
Sterling 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 Common Shares are listed and posted for trading on the TSX-V under the symbol "SLG".
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
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All statements included in this news 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 expected production, 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 news 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 news 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 news release should not be used for purposes other than for which it is disclosed herein.
SOURCE Sterling Resources Ltd.For further information:
For further information: visit www.sterling-resources.com or contact:
Jacob Ulrich, Chairman and Interim Chief Executive Officer, Phone: 44-20-3008-8485, Mobile: 44-7876-346399, firstname.lastname@example.org
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