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 Olimpiyskaya well.
"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 "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.
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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 purposes other than for which it is disclosed herein.
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, [email protected]
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, [email protected]
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, [email protected]