Sterling announces results of testing on East Breagh



    CALGARY, Oct. 21 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG)
is pleased to announce that it has successfully completed testing of the East
Breagh well located in the U.K. Southern North Sea Block 42/13. Sterling holds
a 45% interest and is the operator of the block.
    The well was tested from the upper zone perforations 7490 feet measured
depth (md) to 7560 feet md at controlled rates of up to 10.2 million standard
cubic feet per day (mmscf/d). The final rate was held for a period of twelve
hours prior to shutting in for pressure build up. The stabilized test was
completed on a 32/64 inch choke setting at a flowing wellhead pressure (fwhp)
of approximately 1630 pounds per square inch (psi) of pressure. A further rate
increase was not attempted for operational reasons, but it should be noted
that a calculated rate of 12.5 mmscf/d would be achievable at an fwhp of
1000 psi.
    As originally reported October 3rd, a lower, poorer quality sand
formation was also logged in the well. As part of the testing protocol this
lower formation was perforated first from 7635feet md to 7746 feet md and
tested at rates of up to 1.6 mmscf/d before adding perforations to the upper
zone as above. This is the first time such a lower formation has been tested
individually and in addition to proving the presence of gas, it provides
further upside potential for stimulation in further wells.
    Sterling's Vice President of Operations, John Rapach, stated, "We are
pleased with these test results as the productivity from the upper formation
is consistent with our expectations and the confirmation of the presence of
producible gas in the lower section is an added bonus for consideration in
future wells."
    Stewart Gibson, Chief Executive Officer of Sterling Resources, added
"This test confirms that the flow rate potential for a vertical well at Breagh
is consistent with the estimates used for development planning. The next phase
of drilling in the block will be the deviated West Breagh well, which will
determine the potential flow rate for high angle wells. Drilling of West
Breagh is anticipated to commence in late October."

    Sterling Resources Ltd. is a Canadian-listed international oil and gas
company headquartered in Calgary, Alberta with assets in the United Kingdom,
Romania and France. The shares are listed and posted for trading on the TSX
Venture Exchange under the symbol "SLG".

    
    The TSX Venture Exchange has not reviewed and does not accept
    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.

    %SEDAR: 00002072E




For further information:

For further information: visit www.sterling-resources.com or contact:
Stewart G. Gibson, Chief Executive Officer, Phone: 44-133082-6717, Mobile:
44-7768-042219, stewart@sterling-resources.co.uk; George Kesteven, Manager,
Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,
george@sterling-resources.com


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