CALGARY, June 16, 2014 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)
("Sterling" or the "Company") is pleased to advise that fracture
stimulation and production testing of Breagh well A07 have been
After several days of flowing the well to clean it up, the well was
production tested at a stabilized rate of 32 million standard cubic
feet per day (100 percent) at the planned initial operating conditions
of the well. The performance achieved under these conditions represents
an estimated two to three-fold increase in production rates over what
would have been expected if the well had been completed with the
standard completion used in the Breagh field to date. The well will now
be tied into production over the summer in parallel with the drilling
of well A08, which should commence within the next two weeks.
The A07 well was drilled during the fourth quarter of 2013 to a location
approximately 2 kilometres to the south-east of the Alpha platform,
encountering 100 feet of net pay in two separate zones. The well was
suspended in early January 2014 to release the ENSCO 70 drilling rig
for a planned period of maintenance and upgrade. The rig arrived back
on location at Breagh in early May and re-entered A07 to commence
operations with the assistance of the Schlumberger Big Orange XVIII
well-stimulation vessel. Fracture stimulations were performed over the
two reservoir zones, Zone 1, which is the main productive zone and
reserves base in the Breagh field, and Zone 3, which Sterling currently
classifies as contingent resources. A total of 179,500 pounds of
proppant was pumped. The estimated overall cost of the fracture
treatment is approximately US$10 million (100 percent interest), or
US$3 million net to Sterling.
"These results have exceeded our expectations," stated John Rapach,
Chief Operating Officer for Sterling Resources. "We achieved a marked
improvement on Zone 1 production rates. The results are also very
relevant for the Phase 2 development of Breagh on which we continue to
work with Operator RWE Dea to firm up the plans for submission of a
Field Development Plan Addendum," added Mr. Rapach.
Jake Ulrich, Chief Executive Officer for Sterling Resources, also
commented, "After the lower than expected initial rate from some of the
Breagh wells and the delays in production due to the unplanned
shut-ins, it is particularly pleasing to announce an excellent result
with the first fracture stimulation. This will have significant
positive implications for the ongoing development of the Breagh field
and the future cash flow that we expect to receive."
Sterling Resources 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.
Filer Profile No. 00002072
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.
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.
SOURCE: Sterling Resources Ltd.
For further information:
visit www.sterling-resources.com or contact:
Jacob Ulrich, Chief Executive Officer, Phone: (403) 237-9256, email@example.com
David Blewden, Chief Financial Officer, Phone: (403) 237-9256, firstname.lastname@example.org
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, email@example.com