Sterling Resources Ltd. (TSX-V: SLG)
CALGARY, Nov. 1 /CNW/ - Sterling is pleased to have reached agreement
with the Jersey based Gemini Oil and Gas Fund II, L.P. ("Gemini") under which
Sterling may call up to US $7-million from Gemini to fund certain eligible
expenditures on its forthcoming offshore Romania drilling program. In
conjunction with the other farm outs recently announced, this will ensure
Sterling is fully funded through the drilling and any testing of the Doina
Sister well, whilst retaining an overall 65-percent working interest in the
Midia and Pelican Blocks. In the event of success and future production from
the Doina trend (currently defined as Doina, Doina Sister and Doina North
only), Gemini will be entitled to payments equivalent to a share of Sterling's
gross revenues from such production.
Sterling increased its interest to 100-percent in these two offshore
Romania Blocks at the end of 2006 by acquiring the interest of the previous
operator. This purchase has allowed Sterling to accelerate its activity in
Romania, its second main focus area.
Following on from the above agreements, Sterling has signed a drilling
contract with Grup Servicii Petroliere S.A. ("GSP") for the use of the jack up
rig Prometeu, which is available to start operations on the Doina Sister well
in mid December 2007.
Stewart Gibson, CEO, commented, "The arrangement with Gemini perfectly
suits Sterling's requirements at this stage of its corporate development,
leaves Sterling and Gemini economically aligned to the results of the Doina
Sister well and is complementary to the other farm-out arrangements. We are
pleased that the introduction of farm-in partners and the current arrangement
with Gemini confirm our belief in the prospectivity of the area and allow us
to bring the drill bit to the first of many exciting prospects within the
large 1.1-million acre concession."
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,