Sterling Suspends Breagh Well as Future Producer

Sterling announced the successful drilling of appraisal well 42/13a-6 in the Breagh Field located in the United Kingdom Southern North Sea. Sterling holds a 30% interest in the Breagh field, with RWE Dea, the operator holding the remaining 70% interest.

The well was drilled to a measured depth of 8624 feet and preliminary analysis of the open hole logs by the operator indicates 62 feet of net gas bearing sands. The well is currently being suspended for future use as a production well for the Breagh field. Formation permeability has been estimated from a "mini drill-stem test (DST)" performed on three gas pay intervals, indicating that permeability is in-line with gas pays tested in "West Breagh" wells.

"The primary objective of this well was to further appraise the eastern side of the field, with the well to be tied-back as a production well," noted John Rapach, Sterling's Chief Operating Officer. "In our minimum case scenario, we were considering a single well tie-back to the Breagh Alpha platform. Preliminary evaluation of the 42/13a-6 well results shows that we have achieved more than the minimum case by drilling the thickest gas bearing sequence to date in the Breagh Field. Further, with the large areal extent of the Breagh Field, Sterling Resources and RWE Dea have always planned for a second platform (Breagh Bravo) in a second phase of development. This success on the 42/13a-6 well firms up our intentions for "East Breagh" and we will now enter a pre-development phase," added Mr. Rapach.

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