CALGARY, Aug. 5 /CNW/ - Sterling Resources Ltd., (TSX-V:SLG) ("Sterling" or the "Company") announces the following operations update for activities in the United Kingdom North Sea.
The Blakeney prospect in UK Block 21/27b has been drilled to a measured depth of 4,455 feet where the well encountered oil bearing sands as anticipated. Well operations continue. This is the first well in the block, in which Sterling holds a 25 percent interest and Wintershall, the operator holds 75 percent. The Blakeney prospect is approximately 10 kilometres southwest of Sterling's Sheryl discovery in Block 21/23a in which the Company holds a 35 percent interest.
The JW McLean rig is now on location at the Cladhan discovery well on Block 210/29a-4 where operations will start on a sidetrack to delineate the oil discovery made by Sterling (operator, 39.9 percent) in December of 2008. Partners are Wintershall with a 33.5 percent interest, Encore with a 16.6 percent interest and Dyas with a 10 percent interest.
Drilling has been completed at the Macanta prospect in Block 42/14, a satellite location approximately 13 kilometers east of the main Breagh field and planned platform location. Drilled to a measured depth of 8,937 feet, the well encountered wet sands at a deeper level than anticipated and the well is planned to be plugged and abandoned. It is anticipated that the stratigraphic information obtained from the Macanta well will enhance the Company's understanding of neighbouring prospects surrounding the Crosgan Discovery and possible deeper reservoir potential within the Breagh field. The Company does not consider that these results will impact future exploration and appraisal in the greater Breagh (Quad 42) area.
The development of the Breagh field, in which Sterling holds a 30 percent interest, (operated by RWE - 70 percent interest) progresses with the announcement that the contract for the engineering, procurement and construction ("EPC") of a minimum facilities platform has been awarded to Heerema Vlissingen B.V. ("Heerema"). For the Breagh 'A' development, Heerema will construct the jacket, topsides and piles at their Vlissingen yard in the Netherlands with a planned delivery date of late July 2011. The jacket will be approximately 85 metres tall with a total weight including the piles of some 4,000 tonnes. The topsides will weigh approximately 1,400 tonnes. The Breagh 'A' field is located in the United Kingdom Continental Shelf (UKCS) Block 42/13 of the Southern North Sea in 62 metres water depth, approximately 100 kilometres to the east of Teesside. Gas will be exported via a 20" pipeline to be laid from the platform to the UK mainland.
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.
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.
SOURCE Sterling Resources Ltd.
For further information: For further information: visit www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883, firstname.lastname@example.org; David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, email@example.com; George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, firstname.lastname@example.org