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Press release from CNW Group


Wednesday, September 29, 2010

STERLING ANNOUNCES AGREEMENT WITH TEESSIDE TO PROCESS GAS FROM BREAGH17:00 EDT Wednesday, September 29, 2010CALGARY, Sept. 29 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce that agreement has been reached with the Teesside Gas Processing Plant (TGPP) for the processing and redelivery of natural gas to be produced from the Breagh gas field in the UK North Sea. The scope of the agreement also includes the facilitation of the construction of a 10 kilometre section of onshore pipeline across Teesside and required construction work at the TGPP, a plant owned by Teesside Gas & Liquids Processing (TGLP). The agreement with TGLP was negotiated by the operator of the Breagh field, RWE Dea who hold a 70% working interest. Sterling holds the remaining 30% working interest.The processing and redelivery agreement covers the entire Breagh field life. Among the services to be provided by TGLP is the processing of Breagh natural gas production within a dedicated unit at the TGPP, with onward redelivery of gas to the UK National Transmission System and/or local customers. TGLP will also provide remote operational services to the offshore Breagh Alpha platform facility and will undertake ongoing operational and maintenance related services to the onshore section of the Breagh pipeline.A separate agreement with px Group (px) provides for the construction and installation of onshore 20" and 3" pipelines and telemetry system from Coatham Sands, Redcar to the TGPP. In addition to their existing responsibility for operation and management of the TGPP, px will manage the construction of the onshore pipeline, with subcontracts in respect of this work expected to be awarded before the end of 2010.The Breagh gas field is located in UKCS Block 42/13 of the southern North Sea in 62 metres water depth, approximately 100 kilometres to the east of Teesside. Field development is envisaged in two phases with gas being exported via a 20 inch pipeline to be laid from the Breagh Alpha platform facility to the TGPP via Coatham Sands, Redcar.The estimated resources make Breagh and the surrounding fields one of the largest natural gas discoveries still to be developed in the UK Southern North Sea. Further upside potential is expected in the surrounding exploration blocks. The Breagh Phase one development is expected to receive Government approval during the fourth quarter of this year.Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania and France. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.Filer Profile No. 00002072Forward-Looking StatementsAll statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the press release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this press release should not be used for purpose other than for which it is disclosed herein.%SEDAR: 00002072EFor further information: visit or contact: Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883,; David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804,; George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,