Sterling Sees Signs of Hydrocarbons at Kurdish Well

Blocks in Kurdistan
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Sterling provided an update on its Kurdish activities.

The Sangaw North #1 exploration well is currently drilling ahead at 1,505 meters. Since the last update on May 7, 2010 two intermediate casing strings have been run; 13 5/8" casing was run and cemented with the casing shoe at 1,053 meters TVD (true vertical depth) and 9 7/8" casing was run and cemented with the casing shoe at 1,448 meters TVD.

The well bore is currently being drilled through the Shiranish horizon, the uppermost of the prospective Cretaceous aged formations in the Sangaw North prospect. While drilling this section gas shows and drill cuttings with fluorescence have been observed, both are indications of hydrocarbons being present in the well bore.

The well plan is to drill through the Shiranish and then continue drilling to evaluate the prospectivity of the Kometan and Qamchuqa horizons in the Cretaceous and the deeper potential reservoirs in the Jurassic.

Alastair Beardsall, Sterling's Chairman said, "The gas shows while drilling are encouraging; we will continue our drilling and evaluation program to determine the prospectivity of Sangaw North."

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