RWE DEA Starts Up Production at Breagh Field

Sterling Resources announced Monday that first production from the Breagh gas field in the UK Southern North Sea commenced October 12.

Sterling said initial production was controlled to allow final plant proving and commissioning, before being ramped up to 97 million standard cubic feet per day (MMscf/d) from wells A01, A03 and A04. As wells A02 and A05 are fully brought on-stream, gross production is expected to reach 135 MMscf/d (net to Sterling 40 MMscf/d) during November 2013, the firm added.

Sterling was awarded the licenses at Breagh as operator with a 100-percent stake during the 22nd Seaward Licensing Round in 2004. The company furthered the appraisal of the field drilling wells in 2007 and 2008, and undertook scoping work for the development. During 2009, RWE DEA UK acquired its current 70-percent interest in the Breagh gas field and became operator, with Sterling retaining the remaining 30-percent.

The Breagh field is located in UKCS blocks 42/12a and 42/13a of the Southern North Sea in 203 feet (62 meters) water depth, approximately 62 miles (100 kilometers) east of Teesside. Gas is exported via a 20-inch pipeline from the Breagh Alpha platform to Coatham Sands, Redcar on the UK mainland, and then to a seven-mile (11-kilometer) onshore pipeline for processing at the Teesside Gas Processing Plant (TGPP) at Seal Sands. The TGPP site is owned by North Sea Midstream Partners and after processing at the TGPP, the gas will enter the UK National Transmission System. Sterling's equity share of the gas is being sold at UK spot market price.

"The Breagh field is one of the largest natural gas discoveries under development in the UK Southern North Sea and is the first large scale production for Sterling. We look forward to bringing further gas through this major new infrastructure in the Southern North Sea with our own equity gas in Breagh Phase 2 and Crosgan, and from other potential developments surrounding the Breagh field area," Sterling Chief Operating Officer John Rapach said.



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