Sterling Successfully Drills West Breagh Pilot Well

Sterling has announced the successful drilling of the 42/13-5 and 5-z wells on Block 42/13 in the United Kingdom North Sea. Sterling holds a 45% working interest and is the operator of the Block.

The 42/13-5 "pilot" well was directionally drilled from the same seabed location as the 42/13-3 well drilled during 2007 and encountered the top of the Breagh reservoir approximately 17 feet higher than anticipated. At this point the well bore was angled at 70 degrees and entered the reservoir some 1,700 feet south east of the 42/13-3 well. The 42/13-5 pilot encountered 165 feet of sand (approximately 55 feet vertical thickness) confirming consistency with previous wells and reached a final depth of 8,900 feet having penetrated a regional limestone seismic marker.

The pilot hole was then cemented back above the reservoir and the drilling of a 2,500 foot horizontal well (denoted 42/13-5z) commenced. The horizontal well reached a final total depth of 10,746 feet on the 2nd of
January 2009 after drilling a total of approximately 1,200 feet of sand and intersecting various sand intervals. Drilling operations were completed using geosteering technology provided by Reservoir Navigation Services.

"The 42/13-5Z horizontal well is another operating first for Sterling," commented John Rapach, Sterling's Vice President of Operations. "We would like to congratulate our contractors and staff on the success of the well to date.

The seven inch liner has now been run and cemented and we are progressing to testing the total sand interval. The significant presence of sand encountered is another plus for the Breagh field and we look forward to the test results which should be available by the third week of January," added Rapach.


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