CALGARY, July 21 /CNW/ - Sterling Resources Ltd., (TSX-V:SLG) ("Sterling" or the "Company") is pleased to provide an operational update regarding its current drilling activities in the United Kingdom North Sea.
The Ocean Nomad rig is under contract and should commence drilling at the Blakeney exploration well located in Block 21/27b of the Central North Sea within the next few days. This first well in the block, in which Sterling holds a working interest of 25% is operated by Wintershall (75%) and is targeting the Upper Tay sandstone formation at an estimated target depth of 3,260 feet. The Blakeney prospect is approximately 10 kilometers southwest of the Company's Sheryl discovery in Block 21/23a in which Sterling holds a 35% working interest. "The structure shows great promise with a clear flat spot on the seismic, which suggests the presence of an oil-water contact," stated David Findlater, Sterling's Vice President of Exploration. "Another discovery in the area would be very positive in unlocking the development potential of some of the smaller oil discoveries in the area such as our Sheryl field," stated John Rapach, Sterling's Chief Operating Officer.
The J.W. McLean rig is expected to arrive at the Cladhan field drilling location around July 26th to perform a side track of the discovery well. Delineation of the field begins with side tracking to an up dip location in Upper Jurassic channel sands. With success at the first location, we are planning a further sidetrack well targeting a down dip location to prove a deeper oil column in the structure," stated David Findlater. "Together with the first sidetrack, this delineation work should be sufficient to consider development of the field," added Mr. Findlater. Sterling currently holds a 39.9% interest in the Cladhan field and is operator in partnership with Wintershall (33.5%), Encore (16.6%) and Dyas (10%).
Drilling continues at the Macanta prospect in Block 42/14, a satellite location approximately 13 kilometers east of the main Breagh field and planned platform location. The reservoir section of the Macanta well should be drilled in approximately 10 days.
"Our drilling program is now back to a level that we experienced in 2008 with these three very important wells, any one of which could have a significant impact upon potential reserves additions," commented John Rapach. "We are on track with our plans to explore for satellite fields complementary to the main Breagh facilities and to explore and delineate the potentially high impact wells at Blakeney and Cladhan," added Mr. Rapach.
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.
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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) 77404-32883, Fax: (44) 13308-20670, firstname.lastname@example.org; George Kesteven, Manager, Corporate & Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, email@example.com