CALGARY, June 3, 2011 /CNW/ - Sterling Resources Ltd. ("Sterling" or the
"Company") (TSXV: SLG) announces the completion of drilling of the
210/30a-4X well on Block 210/30a in the United Kingdom North Sea. This
is the fourth well (third side-track) drilled in the current four well
campaign to further appraise the extent of the Cladhan reservoir.
The 210/30a-4X well was drilled in the most southern limit of the
northern core area in a potentially separate channel, utilizing the
Transocean Prospect rig. The objectives of the 210/30a-4X sidetrack
well were to core the full reservoir section approximately one
kilometre south and approximately 60 feet updip of the oil bearing
210/30a-4 well, and evaluate the southern fringe of the northern core
The 210/30a-4X well was drilled to a total measured depth (MD) of 10,614
feet encountering 171 feet gross, 105 feet net (vertical thickness) of
high quality Upper Jurassic sands. Almost 180 feet of core was
successfully recovered across the full reservoir section.
Petrophysical analysis of the interval showed five feet of oil-bearing
sand at the top of the interval with an Oil-Down-To at 10,177 feet True
Vertical Depth Subsea (TVDSS). An oil sample was obtained from the
interval. A further 100 feet of water-bearing sand was encountered
below thin shale which separates the top and bottom sands. A clear
contact has not been observed although the top and bottom sands appear
to be in pressure communication. The presence of a known Oil-Down-To
bodes well for updip oil in other channels with the same pressure
Generally, reservoir quality is very good with porosities up to 25
percent, substantiated by measurements obtained while taking fluid
samples. These pressure measurements also confirm that the interval is
over-pressured on trend with the 210/30a-4Y well, but some 900 psi
lower than the discovery area. The implication of this information is
that the southern fringe of the northern channel area is in
communication with the central channel, being distinct from the main
reservoir in the northern channel area. The well will be suspended for
possible re-use as a future development well at this location or
elsewhere after a sidetrack. With the completion of this four well
drilling campaign, RPS Energy will start a review of the Cladhan
resources with the intent of publishing an update report within a few
"Notwithstanding the presence of predominantly wet sands at this depth
in this separate channel compartment, we are encouraged by the presence
of oil in the top sand and by reservoir quality at this location.
Further updip prospectivity is certainly promising," remarked John
Rapach, Sterling's Chief Operating Officer. "We have proved that our
current seismic model can adequately predict sand thickness but
reservoir quality definition is now paramount for further appraisal and
development drilling. Our next planned subsurface activity is to
complete full reprocessing and interpretation of the existing seismic
dataset incorporating all of the log, core, fluid and pressure results
obtained during this current drilling campaign. Consequently, the next
drilling campaign will probably commence in early 2012," noted Mr.
"Our development planning is concentrating on either a subsea tie-back
or FPSO development of the main northern core area with further
definition of reserves and resources during our next drilling campaign.
We are commencing pipeline route and environmental survey work within
the next few weeks," added Mr. Rapach.
Mike Azancot, Sterling's Chief Executive Officer, commenting on these
results noted that: "The current exploration and appraisal drilling
campaign on Cladhan has been successful in increasing the height of the
oil column by 798 feet to 1228 feet in total. The extent of the
development of the northern core area is now better defined with this
increase in oil column. The fan area in the east of the field remains
prospective as the results from the 210/30a-4Z well drilled in this
campaign are not conclusive due to its proximity to a major fault. Our
plan towards development with options for increased resource
exploitation after further drilling is now underway with a target for
first oil in 2014."
Sterling holds a 39.9% interest in license P1064 which contains Cladhan,
and is the operator. The partners are Wintershall (UK North Sea) Ltd.
with 33.5 percent, Encore Petroleum Ltd with 16.6 percent and Dyas UK
Ltd with 10.0 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 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 purpose other than for which it is disclosed
SOURCE Sterling Resources Ltd.
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