Sterling Resources Updates North Sea Ops

Sterling Resources provided an operational update regarding its current drilling activities in the United Kingdom North Sea.


The Ocean Nomad rig is under contract and should commence drilling at the Blakeney exploration well located in Block 21/27b of the Central North Sea within the next few days. This first well in the block, in which Sterling holds a working interest of 25% is operated by Wintershall (75%) and is targeting the Upper Tay sandstone formation at an estimated target depth of 3,260 feet. The Blakeney prospect is approximately 10 kilometers southwest of the Company's Sheryl discovery in Block 21/23a in which Sterling holds a 35%
working interest.

"The structure shows great promise with a clear flat spot on the seismic, which suggests the presence of an oil-water contact," stated David Findlater, Sterling's Vice President of Exploration. "Another discovery in the area would be very positive in unlocking the development potential of some of the smaller oil discoveries in the area such as our Sheryl field," stated John Rapach, Sterling's Chief Operating Officer.


The J.W. McLean rig is expected to arrive at the Cladhan field drilling location around July 26th to perform a side track of the discovery well. Delineation of the field begins with side tracking to an up dip location in Upper Jurassic channel sands.

"With success at the first location, we are planning a further sidetrack well targeting a down dip location to prove a deeper oil column in the structure," stated David Findlater. "Together with the first sidetrack, this delineation work should be sufficient to consider development of the field," added Mr. Findlater. Sterling currently holds a 39.9% interest in the Cladhan field and is operator in partnership with Wintershall (33.5%), Encore (16.6%) and Dyas (10%).


Drilling continues at the Macanta prospect in Block 42/14, a satellite location approximately 13 kilometers east of the main Breagh field and planned platform location. The reservoir section of the Macanta well should be drilled in approximately 10 days.

"Our drilling program is now back to a level that we experienced in 2008 with these three very important wells, any one of which could have a significant impact upon potential reserves additions," commented John Rapach. "We are on track with our plans to explore for satellite fields complementary to the main Breagh facilities and to explore and delineate the potentially high impact wells at Blakeney and Cladhan," added Mr. Rapach.

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