CALGARY, Feb. 19 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)
Sterling is pleased to announce that an independent evaluation of gas
in-place at its Breagh and Doina Sister discoveries has confirmed significant
in-place volumes which exceed Sterling's pre-well estimates in both areas. The
evaluation by RPS Energy, a UK-based engineering company, will progress
towards reporting recoverable resources with their next report scheduled for
completion in March in line for Sterling's submission of NI 51-101.
Offshore in the UK Southern North Sea, the Breagh structure in Block
42/13 is split between discovered gas in the West Breagh area which was
discovered by the 42/13-2 well in 1997 and appraised by the recent 42/13-3
well and, unrisked, undiscovered gas in East Breagh.
For the Western Breagh Structure the Best Estimate (P50) gas in-place is
330 Bcf. For the undrilled Eastern Breagh structure area, the Best Estimate is
467 Bcf of unrisked, undiscovered gas in-place. The High Estimate (P10) of
discovered gas in-place is 501 Bcf for West Breagh and the High Estimate of
unrisked, undiscovered gas in-place is 668 Bcf for East Breagh.
In the offshore Romanian Black Sea, a Best Estimate gas in-place of
173 Bcf is assigned to Doina Sister which was discovered and tested by the
recent well. The High Estimate for Doina Sister is 260 Bcf. In addition, the
previously drilled Doina discovery has gas in-place of 103 Bcf and 196 Bcf for
the P50 and P10 cases, respectively.
Sterling holds a 45-percent working interest in the Breagh Block together
with working interests ranging from 75-percent to 100-percent in the adjoining
11 North Sea blocks. Offshore Romania, Sterling holds a 100-percent interest
in the large Midia and Pelican Blocks which contain the Doina gas trend and
many other prospects. On completion of agreed farm outs, Sterling's working
interest will drop to 65-percent. The Jersey based Gemini Oil and Gas Fund II
will be entitled to payments equivalent to a share of Sterling's gross revenue
from any future production from Breagh and the Doina gas trend in exchange for
providing funding towards both the Breagh and Doina Sister wells.
Onshore France, the rig has been released from the Grenade-3 well. The
well has been suspended due to lack of reservoir development at the current
location, until such time as the operator reviews the potential to sidetrack
the well back towards the original discovery.
Mr Stewart Gibson, CEO, said "We are pleased to have an independent view
of the gas in-place at both Breagh and Doina which confirms our post-well
result optimism in both areas. We have initiated seismic, site surveys and
long lead item commitments to progress the 2008 drilling programs for both
these offshore areas. With first gas production in mind, the multi-well
programs are designed to include a component of appraisal of the existing
discoveries. Breagh and Doina, although significant in their own right, also
share the potential for creating new infrastructure which in turn will open up
the surrounding areas. Recognizing this, the drilling programs also includes
exploration of additional prospects in the immediate vicinity of the recent
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: Stewart G. Gibson, Chief Executive Officer, 44-133082-6717, Mobile:
44-7768-042219, firstname.lastname@example.org; Ian Hornby-Smith, Chief
Financial Officer, 403-215-9264, Fax: 403-215-9279,