Testing Confirms Cladhan Results

Testing operations on the Cladhan appraisal well, 210/29a-4z, flowed at a stable rate of 5,903 bopd for more than 13 hours through a 28/64-inch choke with a final wellhead pressure of 1,874 psi. The flow rate was restricted by the capacity of surface facilities. Sterling Resources, operator of the field, has indicated that with larger 4.5-inch completion tubing, they estimate that the well can produce more than 15,000 bopd. The testing has confirmed light oil with a gravity of about 34 degree API and a gas oil ratio of 245 scf/bbl. Once testing is completed, the well will be plugged, and a sidetrack down dip southeast of the discovery well will be drilled by the J W McLean semisub to figure out the oil water contact in the field. Sidetrack operations will commence later this week, which should take about two weeks. Once the oil water contact is established, the operator can define the size of the Cladhan accumulation. The Cladhan field is located on Blocks 210/29a and 210/30a in the UK sector of the North Sea in a water depth of 1,634 feet (498 meters). Sterling Energy, holding a 39.9% interest, operates Cladhan; Wintershall holds 33.5%; Encore holds 16.6%; and Dyas holds the remaining 10% interest.

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