CALGARY, Jan. 6 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling")
is pleased to announce the successful drilling of the 42/13-5 and 5-z wells on
Block 42/13 in the United Kingdom North Sea. Sterling holds a 45% working
interest and is the operator of the Block.
The 42/13-5 "pilot" well was directionally drilled from the same seabed
location as the 42/13-3 well drilled during 2007 and encountered the top of
the Breagh reservoir approximately 17 feet higher than anticipated. At this
point the well bore was angled at 70 degrees and entered the reservoir some
1,700 feet south east of the 42/13-3 well. The 42/13-5 pilot encountered 165
feet of sand (approximately 55 feet vertical thickness) confirming consistency
with previous wells and reached a final depth of 8,900 feet having penetrated
a regional limestone seismic marker.
The pilot hole was then cemented back above the reservoir and the
drilling of a 2,500 foot horizontal well (denoted 42/13-5z) commenced. The
horizontal well reached a final total depth of 10,746 feet on the 2nd of
January 2009 after drilling a total of approximately 1,200 feet of sand and
intersecting various sand intervals. Drilling operations were completed using
geosteering technology provided by Reservoir Navigation Services.
"The 42/13-5Z horizontal well is another operating first for Sterling,"
commented John Rapach, Sterling's Vice President of Operations. "We would like
to congratulate our contractors and staff on the success of the well to date.
The seven inch liner has now been run and cemented and we are progressing to
testing the total sand interval. The significant presence of sand encountered
is another plus for the Breagh field and we look forward to the test results
which should be available by the third week of January," added Mr. Rapach.
Sterling Resources Ltd. is a Canadian-listed international oil and gas
company headquartered in Calgary, Alberta with assets in the United Kingdom,
Romania and France. The shares are listed and posted for trading on the TSX
Venture Exchange under the symbol "SLG".
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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
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
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:
For further information: visit www.sterling-resources.com or contact:
Stewart G. Gibson, Chief Executive Officer, Phone: 44-133082-6717, Mobile:
44-7768-042219, firstname.lastname@example.org; George Kesteven, Manager,
Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,