Sterling Resources Ltd. announces successful completion of the Ana-2 appraisal well



    CALGARY, Sept. 16 /CNW/ - Sterling Resources Ltd ("Sterling") (TSXV: SLG)
is pleased to announce the successful completion of the Ana-2 appraisal well,
in the Romanian Black Sea. Ana-2 was drilled as a follow up appraisal well
following the Ana-1 discovery well which was drilled and tested earlier this
year.
    The Ana-2 well encountered gas within the Doina Main Sand Formation at
1,121 metres true vertical depth subsea (TVDss), some 10 metres shallower than
originally mapped. The well has been extensively evaluated with electric logs,
MDT pressure tests and a collection of wireline gas samples. These results
confirm the presence of a 39 metre gas column with a net pay of 23 metres in
high quality reservoir sands with porosity of up to 32% and good permeability.
The pressure data also confirms a gas water contact consistent with the
earlier Ana-1 well. The reservoir sands encountered in the Ana-2 well are
equivalent to, or slightly better, than those encountered in Ana-1. The
original Ana-1 well tested gas, at rates up to 20 million cubic feet of gas
per day (MMcf/d) under conditions restricted by equipment. Under unrestricted
conditions, a final completed rate in excess of 30 MMcf/d per well is
anticipated.
    The Ana-2 well also encountered a 5 meter gas bearing reservoir in a
shallower horizon at 766 metres TVDss. This shallower horizon was also present
in the Ana-1 well and will be further evaluated, in order to determine its
feasibility as a new reservoir.
    The well reached a total depth of 1,600 metres on September 10th and was
located approximately 750 metres north west of the original Ana-1 seabed
location. Following conclusion of the successful acquisition of the logging
suite, the well is now being suspended and rig release is expected by the end
of the week. As previously reported, Ana-2 was directionally drilled from a
seabed template which provides re-entry capability for both of the Ana wells
for future production.
    "We are pleased with the drilling results from Ana-2 as they confirm the
continuity of the reservoir sands and our theory that this area of the field
may be higher than originally mapped. The well has proven positive on both
accounts and we will be able to upgrade our gas in place estimates for the
field based on the results of this successful well," stated Stephen Birrell,
Sterling's Vice President of Romanian Operations.
    "The Ana-2 well was drilled using directional technology to test the
feasibility of deviated wells through the shallow overburden, above the field.
The success of the well has confirmed our ability to develop this field using
directional wells from a common drill centre. This will permit us to optimize
future field development," commented John Rapach, Vice President of Operations
for Sterling.
    Stewart Gibson, Chief Executive Officer of Sterling, saluted the team
responsible for the successful completion of Ana-2: Grup Servicii Petroliere
S.A. (GSP), the drilling contractor, North Sea Well Engineering Ltd.
(Norwell), Sterling's drilling management team, and all of the subsurface and
operational staff. "On behalf of Sterling we wish to express thanks to all of
the members of this team, whose diligence and technical expertise resulted in
the successful execution of the Ana-2 well," noted Mr. Gibson.
    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.
    

    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. 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
purposes other than for which it is disclosed herein.

    %SEDAR: 00002072E




For further information:

For further information: visit www.sterling-resources.com or contact:
George Kesteven, Manager, Investor Relations, Phone: (403) 215-9265, Fax:
(403) 215-9279, george@sterling-resources.com; Stewart G. Gibson, Chief
Executive Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219,
stewart@sterling-resources.co.uk


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