CALGARY, Feb. 7, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") on behalf of its wholly owned subsidiary Sterling Resources Netherlands BV, announces the preliminary results of appraisal well F17-09 in block F17a of the Dutch North Sea.
After reaching a measured depth of 2200 meters, provisional analysis indicates the well encountered a 10 meter gross oil interval (6 meter net oil interval) through interbedded sands with porosities averaging 24 percent, within the Jurassic Schieland formation. Results suggest an oil-water contact at approximately 2000 meters sub-sea, which is higher than anticipated but similar to that observed in previous wells in neighbouring compartments and indicates communication with the previously drilled F17-3 well, with an up-dip potential resultant oil column of up to 120 meters. No testing will be performed but other wells in neighbouring compartments, drilled in the early 1980s, tested oil at rates of up to 4,800 barrels per day and API gravities in excess of 30 degrees. The well is now being plugged and abandoned.
"These well results have been useful in identifying the Oil Water Contact (OWC) and in providing a better understanding of the trapping mechanism," stated Stephen Birrell, Sterling's Vice President and General Manager, Netherlands and France. "This will be important as we consider how to optimally develop this discovery as part of a greater F-Quad development, which also includes the F17-4, F18 discoveries and related exploration prospects. A number of development options are currently being worked on, along with the review of potential further appraisal drilling in the area," added Mr. Birrell.
F17 is one of five licenses acquired by Sterling in November 2010. The partnership is composed of Sterling Resources Netherlands BV (SRNLBV) as operator, holding a 25 percent working interest; EBN holding a 40 percent working interest; Grove Energy Netherlands (Enquest) holding a 10 percent working interest, and Petro Ventures Netherlands BV holding a 25 percent working interest (subject to final government approval). The other four licenses are F18, F16, L01b and F14, which have the same ownership 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 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 purpose other than for which it is disclosed herein.
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]