News ReleaseSterling announces success in the UK 25th offshore licensing round
CALGARY, Nov. 13 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG)is pleased to announce that it has been successful in the UK 25th OffshoreLicensing Round awards, which were announced on November 12th by the UKDepartment of Energy and Climate Change. The blocks awarded are 42/10 and42/15, which are immediately adjacent to Sterling's existing 12 block positionsurrounding the Breagh gas discovery. Sterling is to be the operator of thenewly awarded blocks and will hold a 60% working interest. The main attraction with the new blocks focuses on a sizeable discoveryon 42/10 in the Yoredale sands (which are geologically similar to the BreaghReservoir). The 42/10-2z well drilled by Mobil Oil in 1996 tested 8 millionstandard cubic feet of gas per day (MMscf/d) and was drilled just before theoriginal Mobil Oil well on Breagh (1997), using the same type of water-baseddrilling fluid which is now known to be less than optimal. The structure isreasonably well defined by existing seismic data which will be supplemented bynew data. In addition, the 42/15a-2 well drilled by Total in 1990, tested gas fromthe Zechstein formation at 7.6 MMscf/d and 0.15 MMscf/d from the underlyingCarboniferous (Scremerston) formation. On Block 42/15, there is also a smallTriassic Bunter discovery which tested at 19.6 MMscf/d from the 42/15b-1 welldrilled by Total in 1984. The newly procured blocks adjoin the 42/9 and 42/14 blocks currently heldby Sterling and are located some 20 kilometers from the recent Breaghappraisal wells and form ideal potential tie back candidates to the developingBreagh infrastructure. Stewart Gibson, Sterling's CEO stated "The award of these top rankedblocks in the 25th Offshore Licensing Round marks a significant achievement byall involved. The concept of developing a greater Breagh area following thesignificant Breagh gas discovery has been a strategic move by Sterling overthe past three License Rounds. The addition of this new area, in concert withthe existing discoveries, and following the recent Breagh successes willcontinue to add momentum to the newly developing infrastructure plans." 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".