Sterling Resources commences development drilling at Breagh
Monday, May 14, 2012CALGARY, May 14, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or "the Company") is pleased to announce that development drilling operations have commenced at Breagh in the UK Southern North Sea. The Ensco 70 rig has been deployed to start the Breagh development drilling program in anticipation of first gas production from the field during the third quarter. Previously drilled wells 42/13-3 and 42/13-5Z, suspended for future use as early development wells, will be re-entered and sidetracked to re-drill the reservoir interval. Following the recompletion of these two wells, up to eight new development wells are expected to be drilled, completed and put on production over the next 2 years, n line with the approved FDP.
The Breagh field is located in UKCS blocks 42/12a and 42/13a of the Southern North Sea in 62 metres water depth, approximately 100 km east of Teesside. The field is a conventional Carboniferous reservoir and will be the first large scale production for Sterling. The Breagh Alpha platform situated in the western region of the field will collect gas from the wells. Gas will be exported through the 100 km, 20 inch pipeline to Coatham Sands, Redcar on the UK mainland, and a 10 km onshore pipeline for processing at the Teesside Gas Processing Plant (TGPP) at Seal Sands. Following processing at the TGPP, the gas will enter the UK National Transmission System. The potential maximum capacity of the Breagh pipeline and onshore plant is 400 MMcf/d, providing the flexibility to transport gas from potential satellite fields owned by the Breagh partners and on behalf of third parties in adjacent fields. Sterling holds a 30 percent interest in Breagh, with RWE Dea, as operator, holding the remaining 70 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.
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