CALGARY, Dec. 14, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)
("Sterling" or "the Company") is pleased to announce a gas discovery
following the drilling of the Eugenia-1 well drilled in the Black Sea
offshore Romania. The well reached a total measured depth ("MD") at
2,276 metres (2,248 metres subsea).
The preliminary log analysis indicates a total of 22 metres of
gas-bearing Late Cretaceous sandstones, mainly within two intervals.
Average porosity ranges from 10 to 20 percent and average gas
saturations range from 55 to 62 percent. The sandstone units are
located within the interval 1,938 to 2,038 metres MD. Formation
pressure data and recovered gas samples from open-hole logging tools
confirm moveable gas. Further detailed analysis of logs, pressure data
and samples is ongoing.
In addition to these Late Cretaceous sandstones, a further 20 metre zone
of interest is evident within an Eocene limestone section from 1,900 to
1,938 metres. The interval was drilled with gas shows but attempts to
collect pressure data were unsuccessful although this is not an
uncommon occurrence in carbonates where matrix porosity is limited. Log
analysis will be undertaken to determine if the Eocene limestone could
be gas bearing and producible as was the case in the adjacent
"The Eugenia-1 well is the first exploration well to be drilled on the
2,312 square kilometre Pelican Block which is equivalent in size to ten
United Kingdom North Sea Blocks," stated Pat Whitley, Sterling's Vice
President Exploration International. "The presence of gas in both the
Eocene limestone and Cretaceous sand sections in this first exploration
well is a great step forward for exploration in the Pelican Block."
A third, shallower but high-risk objective of the well was to test the
stratigraphy of a large Oligocene slump or fan structure as outlined by
seismic. Although drilled at a downdip location to enable drilling of
the deeper Eocene and Late Cretaceous main objectives from the same
well location, 100 metres of good quality sandstones with some minor
gas shows were encountered. "With the quality and quantity of
potential reservoir sands, the Oligocene structure remains an
interesting prospect updip of the current well," added Mr. Whitley.
"We are delighted to have drilled two exploration wells this year in our
highly prospective blocks in the Black Sea safely and on budget and
found hydrocarbons in both. We have achieved our long-stated objectives
to return to operations in Romania and now plan to review these well
results in planning an active work program in both blocks over the next
couple of years," stated Mike Azancot, Sterling's President and CEO.
Midia Resources SRL, a wholly owned subsidiary of Sterling Resources Ltd
(65 percent working interest), is the operator of the Midia and Pelican
Blocks in offshore Romania and with partners Petro Ventures Europe BV
(20 percent) and Gas Plus International BV (15 percent).
Sterling Resources Ltd. 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 shares are listed
and posted for trading on the TSX Venture Exchange under the symbol
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts 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 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
SOURCE: Sterling Resources Ltd.
For further information:
visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, firstname.lastname@example.org
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, email@example.com
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, firstname.lastname@example.org