CALGARY, Nov. 23 /CNW/ - Sterling Resources Ltd. is pleased to announce
its results for the three and nine months ending September 30, 2007. The net
loss for the quarter was $0.6-million ($0.01 per share - basic and diluted)
compared to $0.3-million ($0.00 per share - basic and diluted) in the third
quarter of 2006. For the nine months the net loss was $1.7-million compared to
$1.3-million (both $0.02 per share - basic and diluted) in the comparable
period in 2006. Capital spending for the quarter was $5.8-million compared to
$9.5-million in the third quarter of 2006. For the nine months capital
spending was $9.1-million compared to $17.4-million in 2006. Working capital
at September 30, 2007 was $11.5-million compared to $21.1-million at
December 31, 2006.
The most significant event for Sterling was the drilling of its first
operated UK North Sea well which, subsequent to the end of the quarter was
successfully tested. The Breagh appraisal well 42/13-3 is located in the
Southern North Sea and Sterling has a 45-percent working interest. The Company
also holds working interests from 60-percent to 100-percent in a further
eleven blocks which surround Breagh. Breagh is Gaelic for beautiful.
Details of the Breagh appraisal well and other highlights for the quarter
included the following:
- The Breagh appraisal well on Block 42/13 in the Southern North Sea
was drilled to a total depth of 8,047-feet and open-hole logs
confirmed a gas-bearing Carboniferous section with an estimated
76-feet of net pay. The well tested, without stimulation, at rates up
to 17.6-million standard cubic feet per day from perforations across
the interval 7,332-feet to 7,447-feet and the rates recorded are at
the top end of the pre-well estimates.
- The Constance well (Sterling 35-percent) drilled in Central North Sea
Block 21/23a encountered the Eocene Tay sandstone in both the
original and sidetrack locations. The sands were water-bearing and
the well was abandoned.
- In the Northern North Sea, the license covering Blocks 210/29a and
210/30a has been extended to allow drilling in 2008. In addition to
the farm-out to Revus Energy as previously announced, we reached
agreement with Challenger Minerals to farm in on these blocks.
Assuming partner and government approvals, this agreement will leave
Sterling with a 36-percent working interest. We are also in
discussion with other potential farm-in partners.
- Offshore Romania in the Black Sea, Sterling is the operator of the
1.1-million acre Pelican X111 and Midia XV Blocks. During the quarter
we completed three agreements which leave Sterling fully funded
through the drilling and testing of the Doina Sister prospect,
carried through a large share of the Midia SE well, while still
retaining an overall 65-percent interest in the blocks. A jack-up rig
has been secured and the Doina Sister prospect is expected to spud in
- Onshore Romania where we hold a 60-percent interest in the
1.5-million acre Craiova concession, activity has focused on several
shallow gas prospects in the central Goshawk area of the block.
Drilling is expected to commence in early 2008.
Mr. Stewart Gibson, CEO, said, "The recent increase in drilling activity
promises to accelerate into 2008 which is shaping up to be the busiest year in
the history of the Company. We are planning an active appraisal drilling
program on the Breagh block as well as further exploration drilling on the
adjacent blocks. In addition a well on Block 210/29a is expected to be drilled
in the first or second quarter of 2008. Offshore Romania, in addition to the
Doina Sister well expected to commence in mid-December 2007 we are gearing up
for further appraisal drilling on the Doina trend during 2008 with continued
exploration on a well planned on the Midia SE prospect later in the year.
Further wells are also planned on several of the onshore licenses held by the
This disclosure contains certain forward-looking statements that involve
substantial known and unknown risks and uncertainties, 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, therefore Sterling's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these 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. These statements include future production rates,
completion and production timetables and costs to complete wells, and
production facilities. These statements are based on 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.
Sterling Resources Ltd. is an international oil and gas company
headquartered in Calgary, Alberta.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: visit www.sterling-resources.com or contact
either: Ken J. Croft, Investor Relations, Phone: (403) 215-9265, Fax: (403)
215-9279, firstname.lastname@example.org; or Stewart G. Gibson, Chief Executive
Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219,