Sterling Seeks Dome FLore Extension, Drilling Planned

Steling Energy reported that the company is seeking an extension for the Dome Flore concession. The Dome Flore concession lies within the AGC, a joint exploration zone between Senegal and Guinea Bissau. Sterling holds a 30% WI and Markmore, a Malaysian company with interests in bitumen refining, is the operator.

An exploration well to drill two stacked Maastrictrichtian light oil reservoirs is being planned. The shallower heavy oil accumulation will also be penetrated by this well and the interval cored to evaluate the production potential. The heavy oil deposits on Dome Flore and Dome Gea contain an estimated gross 0.8 to 1 billion barrels in place. Sterling's share of the drilling costs will be carried for this exploration well.

A site survey for this well has been conducted, but a rig could not be secured to allow the well to be drilled ahead of the then license expiry date of January 2008. A license extension has been requested, if this is granted then Markmore will contract a rig.