Sterling prepares to spud UK Breagh appraisal well

Sterling Resources Ltd. will target a large Carboniferous gas prospect with its Breagh appraisal well on Block 42/13 in the UK southern North Sea.

Sept. 24, 2007

Uchenna Izundu
International Editor

LONDON, Sept. 24 -- Sterling Resources Ltd. will target a large Carboniferous gas prospect with its Breagh appraisal well on Block 42/13 in the UK southern North Sea.

Ensco International Inc.'s Ensco 85 jack up will spud Breagh, the company's first operated well, on Sept. 25. The Breagh discovery well, 42/13-2 was drilled by Mobil in 1997.

Sterling holds a 50% working interest in this block and will be substantially carried for dry-hole costs of the well.

Initial results from the well are expected at the end of October, Sterling said.

The 1997 well tested 3 MMcfd of gas from a 400-ft gross gas column. Evaluation of the block indicates the potential for major reserves in a very large structure, according to Sterling.

Other partners that have farmed into the block are Grove Energy (UK) 25%, Faroe Petroleum (UK) Ltd. 10%, and RegEnergys Ltd. 15%.

Contact Uchenna Izundu at [email protected].