Sterling Confirms Appraisal Success, One Step Closer to Breagh Development

Sterling has announced the successful testing of the Breagh well located on Block 42/13 in the United Kingdom Southern North Sea. Sterling holds a 45% interest and is the operator of the block.

The 42/13-5z horizontal well tested dry gas at a maximum flow rate of 26 million standard cubic per day (MMscf/d) on an 80/64 inch choke setting at a flowing wellhead pressure of approximately 890 pounds per square inch (psig). Further inflow testing was performed using various choke sizes over a 60 hour period.

These results are currently being integrated with data from the drilling of the 42/13-4, 5 and 5z wells, in order to optimize well requirements for development. The results are expected to show an increase in gross rock volume in excess of 20% compared to previous estimates.

John Rapach, Sterling's Vice President of Operations stated, "Sterling has achieved all objectives set for the appraisal of the Breagh field during the 2008 drilling campaign; additional gas was discovered with the 42/13-4 well on the eastern side of the structure, and now we have drilled and tested the 42/13-5z well which brings the Breagh field one step closer to development. We now have three wells ready for production with the 42/13-3 and 42/13-5z wells side-by-side at the correct spacing and ready for tie-back to a production platform. Our next step is to file a Field Development Plan for approval by the UK Government."



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