CALGARY, Oct. 3 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG)
is pleased to announce the successful drilling of the East Breagh well located
on Block 42/13 in the United Kingdom North Sea. Sterling holds a 45% interest
and is the operator of the block.
After detecting the presence of gas and sand while drilling at 7,500 feet
(7,363 feet of true vertical depth (tvd)), a 110 foot core was taken. Drilling
was then resumed and the well reached a final depth of 8,000 feet tvd subsea
on September 30th, with gas shows of up to 20% while coring and drilling.
Preliminary analyses of both the core and the well logs indicate two gas
bearing intervals with approximately 72 feet net sand in total. The upper
section shows 30 feet of high quality reservoir with porosity of up to 18% and
permeability up to 50 millidarcy (md), confirmed from core data. Preliminary
geological analysis indicates that these upper gas sands correlate with the
sands encountered in the previously drilled West Breagh well (42/13-3) four
"We have just completed open hole logging of the well and are very
excited about proving-up gas in the East Breagh area, adding to gas previously
tested at rates up to 17.6 million standard cubic feet per day in the West
Breagh area," noted John Rapach, Vice President of Operations for Sterling.
"With these encouraging results, we plan to test the Upper and Lower reservoir
sections over the next couple of weeks to complete our evaluation," he added.
Stewart Gibson, Chief Executive Officer of Sterling added "Confirming the
presence of gas within the eastern part of the Breagh structure was the
primary objective of the well. Although still to be confirmed, current data
points to a common gas water contact between the west and east areas.
Following the test results and integration of all of the new well data we will
assess the impact on overall development planning for Breagh. This is also the
first of our wells managed by Advanced Drilling Technology International
(ADTI) and we are very pleased with the operations to date."
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.
Filer Profile No. 00002072
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
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
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.
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, firstname.lastname@example.org; Stewart G. Gibson, Chief
Executive Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219,