Sterling: Rigs Onsite at Sheryl and Boar

Sterling Resources Ltd. reported that rigs are on location at both Sheryl, offshore UK North Sea, and Boar, onshore Romania, and that the company's second-phase seismic program is underway in Romania.

Offshore UK, the Transocean Sedco 712 drilling unit is on location and operations have commenced on the appraisal of the Sheryl prospect on Block 21/23a in the Central North Sea. Sterling has a 35-percent interest in the prospect. Sterling's first offshore well successfully drilled the Sheryl prospect (formerly named Disraeli) in the second quarter of 2006. The well intersected 25 meters of net pay within a 30-meter oil column. A further sidetrack up-dip from the discovery well found hydrocarbons in interbedded sands. Neither well was tested due to the highly deviated nature of the well bores. Current appraisal of the discovery will focus on the eastern and southern flanks of the structure. The rig will drill up to four appraisal well-bores from a single surface location. The drilling and related testing program is expected to take around sixty days to complete.

Onshore Romania, the Dafora drilling company rig is on location and currently rigging up in the south east part of the Craiova Concession. Sterling has a 60-percent interest and is the operator of the concession. Based on early 2006 seismic results, the Boar location was selected as the first well to be drilled. Boar (officially named Piscu Sadovei) is located at the intersection of two regional highs and has several reservoir objectives ranging from Cretaceous to Triassic in age. The well is expected to spud around the 20th August and take approximately forty days to drill.

Also in the Craiova Block, the survey crews are on location in preparation for the second seismic shoot for 2006. Currently some 250 kilometers are planned initially in an area covered by a regional reconnaissance line shot earlier this year. Referred to as the Goshawk region, the area is located to the south of the large Malu Mare field and the new lines are designed to refine the interpretation of some large structural features located in an area previously devoid of modern seismic.

Sterling Resources Ltd. is an international oil and gas company headquartered in Calgary, Alberta.

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