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Press release from CNW Group


Friday, March 04, 2011

STERLING RESOURCES ANNOUNCES SUCCESSFUL DRILLING OF AN APPRAISAL WELL AT EAST BREAGH07:42 EST Friday, March 04, 2011CALGARY, March 4 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG) is pleased to announce the successful drilling of appraisal well 42/13a-6 in the Breagh Field located in the United Kingdom Southern North Sea.  Sterling holds a 30% interest in the Breagh field, with RWE Dea, the operator holding the remaining 70% interest.The well was drilled to a measured depth of 8624 feet and preliminary analyses of the open hole logs by the operator indicates 62 feet of net gas bearing sands. The well is currently being suspended for future use as a production well for the Breagh field.  Formation permeability has been estimated from a "mini drill-stem test (DST)" performed on three gas pay intervals, indicating that permeability is in-line with gas pays tested in "West Breagh" wells."The primary objective of this well was to further appraise the eastern side of the field, with the well to be tied-back as a production well," noted John Rapach, Sterling's Chief Operating Officer. "In our minimum case scenario, we were considering a single well tie-back to the Breagh Alpha platform.  Preliminary evaluation of the 42/13a-6 well results shows that we have achieved more than the minimum case by drilling the thickest gas bearing sequence to date in the Breagh Field.  Further, with the large areal extent of the Breagh Field, Sterling Resources and RWE Dea have always planned for a second platform (Breagh Bravo) in a second phase of development. This success on the 42/13a-6 well firms up our intentions for "East Breagh" and we will now enter a pre-development phase," added Mr. Rapach.Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands.  The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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.For further information: visit or contact:Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883, mike.azancot@sterling-resources.comDavid Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,