Sterling Energy has provided the following update on its activities:
Kurdistan-Sangaw North PSC
In the Sterling operated Sangaw North block (53.33% WI), the drilling rig is now in transit to the well location and the well is scheduled to start drilling in the second half of December. The planned total depth of the well is 3,660m, with an option to drill to 4,160m.
The well will target several prospective reservoirs in the Cretaceous. An independent review of the Sangaw North prospect undertaken by RISC (UK) Ltd gives a best estimate of gross prospective oil resources for the Cretaceous interval of 804 million barrels. If the well is drilled to 4,160m it will also test potentially prospective reservoirs within the Jurassic.
Sale of USA business
The sale of the Company's USA business is progressing well and is expected to be completed in early December. The proceeds of the sale, after costs, will be used to repay the outstanding bank debt and the remainder will be used as working capital.
Proposed Open Offer to Shareholders
The Company is completing the prospectus for the Open Offer and proposes to post the document after the sale of the USA business is completed.
Alastair Beardsall, Sterling's Executive Chairman said, "We are all looking forward with excitement to the drilling of Sangaw North #1. The well will test potential resources that, if proven, will add significant value for our shareholders. The sale of the USA business, when completed, will allow the Company to focus on its exploration portfolio without the burden of any debt."
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