Operations Halted at Sangaw North Exploration Well

Sterling Energy provided the following update on its activities at the Sangaw North exploration well.

Operations at the Sangaw North #1 exploration well have been halted following a failure of drilling rig equipment. The extent of the repair work is being assessed, however an initial assessment indicates the requirement for replacement parts to be imported and mobilization of specialist engineers to complete the repairs. Sterling estimates that repairs may take up to 21 days to complete.

Following the satisfactory completion of repairs, Sterling will resume the drill stem testing of the prospective zones identified from the well data.

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