STERLING RESOURCES ANNOUNCES THE SUCCESSFUL DRILLING OF A SECOND SIDETRACK
WELL AT CLADHAN
CALGARY, Oct. 4 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce the successful drilling of a second Cladhan sidetrack well located in Block 210/29a in the United Kingdom North Sea, approximately 225 miles northeast of Aberdeen, Scotland, in a water depth of 536 feet.
Work on the second sidetrack (210/29a-4y) of the discovery well commenced in mid-September drilling to a total depth of 11,530 feet MD (measured depth) to a downdip location approximately 3,580 feet south east of the original well and about 2,690 feet due east of the first sidetrack bottom hole location. The well has encountered in excess of 60ft vertical thickness of net hydrocarbon bearing sandstones. Wireline logs, downhole sampling and pressure recording has yet to be completed to confirm data from the MWD/LWD (Measurement While Drilling/Logging While Drilling) tools. However, preliminary analysis indicates good quality sand with an average porosity of 20% and most importantly, the well has not encountered an oil water contact at this downdip location. Lowest known oil occurred at a depth of 11,333 feet MD, which if confirmed by pressure measurements (MDT) will establish a minimum oil column of 425 feet.
An initial sidetrack well (210/29a-4z) was drilled during August of this year to an updip location approximately 3,150 feet due south of the discovery well. This sidetrack well was drilled to a total depth of 11,215 feet MD, encountering a gross hydrocarbon column of 159 feet with 102 feet of net hydrocarbon bearing sandstones. The well was tested at a restricted rate of 5,903 bopd with wellhead pressure of 1,874 psig. The gravity of the oil is 34 degrees API.
Further information on the current sidetrack well results will follow on completion of the data acquisition.
Sterling is the operator of Cladhan (License P1064) and holds a 39.9% working interest. Partners for License P1064 are Wintershall (UK North Sea) with a 33.5% working interest, Encore Petroleum Ltd. with a 16.6% working interest and Dyas UK Ltd with a 10% working interest.
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.
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Forward-Looking Statements
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.
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For further information: visit www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883, [email protected]; David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, [email protected]; George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, [email protected]
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