Latest Well Confirms Disraeli Oil Accumulation


Disraeli Well, North Sea
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Sterling Resources says that the second sidetrack at the Disraeli Prospect located in Block 21/23a in the UK Central North Sea has found oil and gas. Sterling has a 35% interest in Block 21/23a, which is operated by Oilexco Incorporated.

The first Disraeli side-track well bore 21/23a-8Z intersected 74 feet of net oil pay from a 90 foot oil column in the Eocene Tay Sandstone, located on the west flank of a structure defined by 3D seismic data. The 21/23a-8Z well bore was plugged back to allow an additional side-track "extended reach" well bore to be drilled to evaluate the oil column at crest of the structure. Electric well logs on this well-bore 21/23a-8Y, confirmed the presence of a thin gas cap and oil in interbedded sands. Pressure measurements and well testing were not undertaken due to the highly deviated nature of this well-bore.

Sterling and Oilexco have agreed that additional appraisal drilling is warranted at Disraeli to evaluate the south and east flanks of the structure. Oilexco will file a well permit application shortly for a location to test these locations utilizing its contracted rig, the Sedco 712. Drilling of these appraisal locations could commence, subject to regulatory approval, in late June or early July. Extensive reservoir evaluation through coring and well testing is planned in this appraisal program and if it is successful, fast track development is planned.

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