Sterling Strikes Gas at East Breagh in UK North Sea

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Sterling Resources Ltd. has announced the successful drilling of the East Breagh well located on Block 42/13 in the United Kingdom North Sea. Sterling holds a 45% interest and is the Operator of the block.

After detecting the presence of gas and sand while drilling at 7,500 feet (7,363 feet of true vertical depth (tvd)), a 110 foot core was taken. Drilling was then resumed and the well reached a final depth of 8,000 feet tvd subsea
on September 30th, with gas shows of up to 20% while coring and drilling.

Preliminary analyses of both the core and the well logs indicate two gas bearing intervals with approximately 72 feet net sand in total. The upper section shows 30 feet of high quality reservoir with porosity of up to 18% and
permeability up to 50 millidarcy (md), confirmed from core data. Preliminary geological analysis indicates that these upper gas sands correlate with the sands encountered in the previously drilled West Breagh well (42/13-3) four kilometers away.

"We have just completed open hole logging of the well and are very excited about proving-up gas in the East Breagh area, adding to gas previously tested at rates up to 17.6 million standard cubic feet per day in the West
Breagh area," noted John Rapach, Vice President of Operations for Sterling.

"With these encouraging results, we plan to test the Upper and Lower reservoir sections over the next couple of weeks to complete our evaluation," he added.

Stewart Gibson, Chief Executive Officer of Sterling added "Confirming the presence of gas within the eastern part of the Breagh structure was the primary objective of the well. Although still to be confirmed, current data points to a common gas water contact between the west and east areas.

"Following the test results and integration of all of the new well data we will assess the impact on overall development planning for Breagh. This is also the first of our wells managed by Advanced Drilling Technology International (ADTI) and we are very pleased with the operations to date."



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