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Press release from CNW Group

STERLING RESOURCES ANNOUNCES RESULTS OF THIRD OF FOUR WELL CLADHAN APPRAISAL PROGRAM

Wednesday, May 18, 2011

STERLING RESOURCES ANNOUNCES RESULTS OF THIRD OF FOUR WELL CLADHAN APPRAISAL PROGRAM09:00 EDT Wednesday, May 18, 2011CALGARY, May 18 /CNW/ - Sterling Resources Ltd. ("Sterling" or the "Company") (TSXV: SLG) announces the completion of drilling of the 210/30a-4Y well on Block 210/30a in the United Kingdom North Sea. This is the third well (second side-track) drilled in the current four well campaign to further appraise the extent of the Cladhan reservoir.The 210/30a-4Y well was drilled at a location 2.9 kilometers southwest of the most recent 210/30a-4Z well, utilizing the Transocean Prospect rig from a centrally positioned location. The objectives of the 210/30a-4Y sidetrack well were to appraise the "central channel" in the Cladhan area.The 210/30a-4Y well was drilled to a total measured depth (MD) of 12,615 feet encountering 40 feet (vertical thickness) of high quality Upper Jurassic sands. Petrophysical analysis describing porosities up to 25% also showed the sands to be water wet. Pressure measurements confirm that the interval is over-pressured, but to a lesser extent than in the discovery area and that the sands in this well are water bearing. The implication of this information is that the "central channel" is separate from the main reservoir in the "northern channel" area."While disappointed to encounter wet sands, in this separate channel compartment, we are encouraged with the quality of the reservoir at this location which positively aids our understanding of reservoir quality distribution within the Cladhan area," remarked John Rapach, Sterling's Chief Operating Officer. "Our final appraisal well in the current campaign will target the heart of a channel sequence approximately 1 kilometer south and approximately 150 feet updip of the oil bearing 210/30a-4 well, proving up this southern sector of the "northern channel" area.  Our development planning is concentrating on either a subsea tie-back or FPSO development of the "northern channel"area with the option for upside resource exploitation to the east after further appraisal drilling. We maintain our target of first oil in 2014, with plans for pipeline route and environmental survey work to commence over the next month," added Mr. Rapach.  Medium term plans include the reprocessing and interpretation of the existing seismic dataset and incorporation of all of the log, core, fluid and pressure results obtained during this current drilling campaign. The next drilling campaign will probably commence in early 2012.Sterling holds a 39.9% interest in license P1064 which contains Cladhan, and is the operator. The partners are Wintershall (UK North Sea) Ltd. with 33.5 percent, Encore Petroleum Ltd with 16.6 percent and Dyas UK Ltd with 10.0 percent.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 www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone 44-7740-432883, mike.azancot@sterling-resources.com David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, david.blewden@sterling-resources.com George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, george.kesteven@sterling-resources.com