East Breagh (I will try again)Attention Business Editors:
Sterling announces results of testing on East Breagh
CALGARY, Oct. 21 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG)is pleased to announce that it has successfully completed testing of the EastBreagh well located in the U.K. Southern North Sea Block 42/13. Sterling holdsa 45% interest and is the operator of the block. The well was tested from the upper zone perforations 7490 feet measureddepth (md) to 7560 feet md at controlled rates of up to 10.2 million standardcubic feet per day (mmscf/d). The final rate was held for a period of twelvehours prior to shutting in for pressure build up. The stabilized test wascompleted on a 32/64 inch choke setting at a flowing wellhead pressure (fwhp)of approximately 1630 pounds per square inch (psi) of pressure. A further rateincrease was not attempted for operational reasons, but it should be notedthat a calculated rate of 12.5 mmscf/d would be achievable at an fwhp of1000 psi. As originally reported October 3rd, a lower, poorer quality sandformation was also logged in the well. As part of the testing protocol thislower formation was perforated first from 7635feet md to 7746 feet md andtested at rates of up to 1.6 mmscf/d before adding perforations to the upperzone as above. This is the first time such a lower formation has been testedindividually and in addition to proving the presence of gas, it providesfurther upside potential for stimulation in further wells. Sterling's Vice President of Operations, John Rapach, stated, "We arepleased with these test results as the productivity from the upper formationis consistent with our expectations and the confirmation of the presence ofproducible gas in the lower section is an added bonus for consideration infuture wells." Stewart Gibson, Chief Executive Officer of Sterling Resources, added"This test confirms that the flow rate potential for a vertical well at Breaghis consistent with the estimates used for development planning. The next phaseof drilling in the block will be the deviated West Breagh well, which willdetermine the potential flow rate for high angle wells. Drilling of WestBreagh is anticipated to commence in late October." Sterling Resources Ltd. is a Canadian-listed international oil and gascompany headquartered in Calgary, Alberta with assets in the United Kingdom,Romania and France. The shares are listed and posted for trading on the TSXVenture Exchange under the symbol "SLG".