CALGARY, Oct. 19, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or "the Company") is providing current resources estimates for its properties offshore Romania. The current estimates have been prepared by Sterling's independent reserves evaluator RPS Energy(1) and comprise individual and aggregated resources estimates for the fields and prospects in Block 13 Pelican and Block 15 Midia (Sterling 65 percent), Block 25 Luceafarul (Sterling 50 percent) and Block 27 Muridava (Sterling 40 percent). The Prospective Resources estimates do not include those relating to the Anca and Maria prospects in Block 15 Midia, which are planned to be sold to ExxonMobil Exploration and Production Romania and OMV Petrom pursuant to the transaction announced separately today.
- Company Share 2C Contingent Resources(2)(4)(5) offshore Romania are now 278 billion cubic feet (Bcf) of gas. This represents a 24 percent increase from the figure reported as at the end of 2011 in the Company's Annual Information Form, which did not include the contribution from the gas discovery in the Luceafarul Block.
- Company Share Unrisked(6) Prospective Resources (P50)(3)(4)(5) offshore Romania now stand at 403 million barrels (MMbbls) of oil and 1,035 Bcf of gas, excluding the Anca and Maria prospects in the Midia Block. This represents a 100 percent increase and a 40 percent increase respectively in the equivalent figures reported as at the end of 2011 in the Company's Annual Information Form, which did not include the contribution from prospects in the Luceafarul and Muridava Blocks.
Company Share Resources Estimates for offshore Romania
|Oil (MMbbls)||Gas (Bcf)|
The updated estimates incorporate some small downward revisions to the Contingent Resources of the Doina discovery and to the Prospective Resources of certain gas prospects in Block 15 Midia, as a result of a software error in the commercially available software used by RPS Energy. The 1C, 2C and 3C Contingent Resources and P90, P50 and P10 Prospective Resources for individual fields and prospects are provided in the following tables.
Company Share Contingent Gas Resources(2)(4)(5)
| Contingent Gas Resources
Company Share Prospective Gas Resources(3)(4)(5)
| Prospective Gas Resource
|Total(5) (Unrisked)(6)||597||1,035||1,937||< < 1|
Company Share Prospective Oil Resources(3)(4)(5)
| Prospective Oil Resource
|Eugenia South - Eocene||Pelican||65||1||4||9||53|
|Eugenia South - U Cretaceous||Pelican||65||5||8||18||53|
|Mihaela - Neocomian||Pelican||65||3||21||114||15|
|Mihaela - Upper Jurassic||Pelican||65||11||38||103||15|
|Total(5) (Unrisked)(6)||203||403||1,174||< < 1|
"Sterling has long recognized the hydrocarbon potential in our extensive Black Sea acreage," commented Mike Azancot, Sterling's Chief Executive Officer. "With our recent addition of interests in the Block 27 Muridava and Block 25 Luceafarul earlier in 2012, and further assessment of prospects in both the Midia and Pelican Blocks, we can now report a significant uplift to our prospect portfolio."
Notes on Resources Estimates:
- RPS Energy, Resources Evaluation of the Luceafarul (25), Muridava (27), Midia (15) and Pelican (13) Blocks Offshore Romania effective September 30, 2012 and dated October 17, 2012.
- Contingent Resources are those quantities of petroleum estimated as of a given date to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters, or lack of markets. It is also appropriate to classify as Contingent Resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Specific contingencies preventing the classification of the resources as reserves are further definition of resource volumes through further appraisal drilling, regulatory approvals and sanction, and selection of a specific field development concept, including the most viable crude offtake delivery routing and oil sales contracts. There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources.
- Prospective Resources are those quantities of petroleum estimated as of a given date to be potentially recoverable from undiscovered accumulations by application of future development projects. There is no certainty that any portion of the Prospective Resources will be discovered or, if discovered, that it will be commercially viable to produce any portion of the Resources. These Prospective Resources are in areas of the field or geological horizons, in which the presence of hydrocarbons require confirmation by drilling.
- The P(50) or 2C is considered to be the best estimate of the quantity that will actually be recovered. If probabilistic methods are used there is at least a 50 percent probability P(50) that the quantities actually recovered will equal or exceed the estimate. Similarly, the 1C or P(90) and 3C or P(10) represent the low and high estimates respectively.
- Company Resources totals shown by Resources category are statistical aggregates of Unrisked Resources at the company level. For Contingent Resources these statistical aggregates assume no dependencies between discoveries and for Prospective Resources these statistical aggregates assume no dependencies between prospects.
- Unrisked stochastically summed volumes assume that all prospects are successful. The likelihood of this is deemed to have a probability of much less than 1 percent.
- Geological Probability of Success (GPoS) is defined as the chance that resource volumes of the prospect will exist as described in the technical evaluation. GPoS is derived by a combination of the Regional Play Chance, (a combination of the chances of having hydrocarbon source, reservoir and seal) and Prospect Specific Chance (a combination of the chances of having a trap, seal, reservoir and hydrocarbon charge). All reported GPoS are evaluated by RPS Energy (reference note 1).
- On block Prospective Resources.
As with all oil and gas fields at this early stage of appraisal, there are significant positive and negative factors, which may impact the resource volumes for Romania. There is a significant range of uncertainty associated with the resource volumes due to variations in geological properties, reservoir petrophysical properties and potential well flow rates in the undrilled portions of the reservoir structure.
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 "SLG".
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 herein.
SOURCE: Sterling Resources Ltd.
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