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Press release from CNW Group

Sterling Resources Announces Offshore Netherlands Farm Out Agreement

Thursday, September 01, 2011

Sterling Resources Announces Offshore Netherlands Farm Out Agreement17:00 EDT Thursday, September 01, 2011CALGARY, Sept. 1, 2011 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling" or the "Company") is pleased to announce that its wholly-owned subsidiary Sterling Resources Netherlands B.V. ("Sterling Netherlands") has signed a farm-out agreement with Petro Ventures Netherlands B.V. covering its licenses within the F-Quad and L-Quad offshore Netherlands.  Subject to governmental and co-venturer approvals, Sterling Netherlands as operator will now hold a 25 percent working interest, Energie Beheer Nederland BV (EBN) will hold 40 percent, Petro Ventures Netherlands B.V. will hold 25 percent and Grove Energy Limited (a subsidiary of Enquest PLC) will hold the remaining 10 percent.The agreement encompasses the shallow parts of four blocks (F14, F16, F17a, and F18) in the F-Quad and L01b in the L-Quad sector covering 1550 square kilometers, located 80 kilometers offshore, in a water depth of 45 meters.  The blocks currently hold four oil discoveries and an appraisal well is planned to be drilled in the fourth quarter of 2011 in Block F17.  RPS Energy (1) currently project 2C (P50) Contingent Resources (2,4) of 31.5 million barrels (MMbbl) (100 percent) and Best Estimate (P50) Prospective Resources (3,4) of 38.9 MMbbl (100 percent, full field basis) across all of the blocks."We are delighted to welcome Petro Ventures into this partnership to balance our equity position to an acceptable level as we proceed with an appraisal program in these potential growth assets," stated Mike Azancot, Sterling's Chief Executive Officer.Petro Ventures Netherlands B.V. is an affiliate of Petro Ventures International Ltd., a privately owned company registered in Western Australia with oil and gas investments around the globe.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".Notes:(1)  The Company's hydrocarbon resources were independently evaluated by RPS Energy in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions and evaluation practices and procedures, as specified by National Instrument 51-101. ("NI 51-101"). Complete details regarding Sterling's Resources for the year ended December 31, 2010 and in a format specified by NI 51-101 can be found in Sterling's Annual Information Form (AIF) which can be found on SEDAR at www.sedar.com or on the Company's website www.sterling-resources.com.  (2)  Contingent Resources are those quantities of petroleum estimated as of a given date to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Individual field uncertainties include data inputs to volumetric analysis of Hydrocarbons-Initially-In-Place (HCIIP) and projected recovery factors. There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources. Further appraisal is required to fully delineate the resource.  Following the further appraisal, exploitation of the field will be considered commercially against potential development options and projected production profiles.  If commercially viable, an Environmental Assessment (EA) and Development Program (FDP) will require sanction by the partnership and ratification by various governmental authorities in the Netherlands.  (3)  Prospective Resources are those quantities of petroleum estimated as of a given date to be potentially recoverable from undiscovered accumulations by application of future development projects.  There is no certainty that any portion of the Prospective Resources will be discovered, and if discovered, that it will be commercially viable to produce any portion of the Resources.  These Prospective Resources are in areas of the field or geological horizons in which the presence of hydrocarbons require confirmation by drilling.  (4)  Resource totals shown by Resource category are statistical aggregates of unrisked Resources. For Contingent Resources the statistical aggregates assume no dependencies between discoveries and for Prospective Resources these statistical totals assume no dependencies between prospects. The estimates of Resources for individual properties may not reflect the same confidence level as estimates of Resources for all properties, due to the effect of aggregation.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward-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.For further information: visit www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 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