Sterling Resources to Spud Onshore UK Well

Sterling Resources reports that the rig, contracted to drill the exploration well Avington-2 on license PEDL 070 in the Weald Basin, onshore UK, has moved onto location. The well will be drilled directionally into the crest of the prospect, which is targeting the Middle Jurassic, Great Oolite reservoir that produces in the nearby Stockbridge oilfield. Based on positive results, a horizontal section will be drilled to optimize completion. The well is expected to take 25 to 30 days.

Sterling has also concluded farmout agreements covering part of its interest in PEDL 070. In exchange for an 8.333% interest in the license, Sterling's major share of the Avington well costs, including past costs, are being funded. Completion of the agreements is conditional on approval from joint venture partners and the UK Department of Trade and Industry. Sterling will retain an 8.333% interest in the license. These farmouts are in line with Sterling's stated strategy of bringing in industry partners to share technical and financial risks of exploration.