Sterling to Abandon Boar
Sterling Resources Ltd. said that the Piscu Sadovei well (also referred to as "Boar"), reached a final total depth of 2,673 meters MDBRT on October 31, 2006. After a review of the open-hole electric logs a decision has been made to abandon the well. During drilling, the well penetrated effective reservoir sections within all the target horizons, the Jurassic Dogger and the Upper and Middle Triassic. Unfortunately, hydrocarbons were not observed either during drilling or logging. The section drilled was close to prognosis although more sand was noted in the upper Triassic than expected. The source, migration and structural impact of the well results will be assessed in the post well analysis which has now started.
The Piscu Sadovei well is located in the southeast corner of the Craiova concession. Sterling has a 60-percent interest and is the operator of the Craiova concession. Until such time as the results from the full post well analysis are available, drilling of the Wolf well, which is in a similar geological regime, will be deferred.
A 270 kilometer infill seismic program was completed during Q3 across the central area of the block, known as Goshawk. Much of the data is now processed and interpretation will be completed by year-end. In addition, a 220 kilometer seismic program is currently being shot in the western part of the Craiova concession known as Flounder. Results from these studies will dictate the next drilling sequence within the concession, which could start in early 2007.
Offshore Romania, negotiations to acquire the interests of Talisman Petroleum Ltd. in the Midia and Pelican offshore blocks are progressing. On completion Sterling would assume operatorship and its interests in these blocks would be 100-percent. Subject to regulatory and government approvals, the transaction is expected to close by year-end.