Sterling Resources has reached agreement with Challenger Minerals ( North Sea) Limited ( CMI ) under the terms of which CMI may acquire a 10% interest in the Cladhan discovery drilled by Sterling in late 2008. Sterling currently holds a 39.9% working interest in Cladhan, located in Block 210/29 in the northern North Sea. The option to acquire the interest will follow a contribution towards past well costs and the payment of a carry on the forthcoming sidetrack well.
In addition, Sterling will acquire a 10% working interest, on a ground floor basis, in the Crosby well to be drilled by CMI during May. The Crosby well is located in the East Irish Sea and is located between the Lennox and Hamilton fields. Completion is subject to formal agreement and normal partner and government approvals.
Sterling is also pleased to announce that it has elected to take back operatorship for the Sheryl (Block 21/23a in the central North Sea) discovery in which Sterling holds a 35% interest. The project has been on hold, awaiting capacity in the Pict pipeline system, which is anticipated to be available in late 2009 or early 2010. Sheryl was originally drilled in 2006 and tested oil at a maximum rate of 1915 barrels of oil per day of 22 API gravity oil, although independent studies indicate the potential for up to 10,000 barrels of oil production per day from a high angle well with sand control and artificial lift.
Following an initiative introduced by the UK Department of Energy and Climate Change (DECC), Sterling is pleased to report the potential for extending the deadline for twelve 24th Round Blocks until November 30, 2009. One Block, 21/29d, will be relinquished on the original deadline of March 31, 2009.
Stewart Gibson, Sterling's CEO, stated "The Cladhan deal brings us in line with drilling the exciting sidetrack planned for later this year and
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