Press release from CNW Group
Sterling Resources Announces Breagh Well Test Results and Revised 2013 Production Guidance
Tuesday, August 13, 2013
Sterling Resources Announces Breagh Well Test Results and Revised 2013 Production Guidance07:30 EDT Tuesday, August 13, 2013
CALGARY, Aug. 13, 2013 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or "the Company") announces production test results for recently completed Breagh development wells A04 and A05 and resultant revised 2013 production guidance.
A05 is now completed, having reached a total depth of 12,810 feet measured depth at a location 2.5 kilometres north east of the Breagh Alpha platform. The well has been tested at a maximum rate of 21 million standard cubic feet per day ("MMscf/d"). Following the testing of the A05 well, the A04 well which was drilled, completed and suspended in February 2013, was tested and produced at a maximum rate of 26 MMscf/d. The wells are anticipated to provide a combined initial production capacity of some 45 MMscf/d under expected production conditions.
Initial gross production at Breagh is expected to be approximately 135 MMscf/d with five of the seven planned production wells on-stream. The average production rate for the field is now forecast to be circa 102 MMscf/d (31 MMscf/d net to Sterling) for the remainder of 2013, assuming first gas production in mid-September. This estimate reflects appropriate field uptime assumptions following production start-up of the wells and the processing plant, and compares to the previous forecast of May 21st 2013 of 170 MMscf/d (51 MMscf/d net to Sterling), which assumed an early August production start.
Total average production during 2014 at Breagh is now estimated to be 112 MMscf/d (33 MMscf/d net to Sterling). This compares to the previous forecast average production rate of 146 MMscf/d (44 MMscf/d net to Sterling).
"We are pleased to be able to put another two development wells into service with a combined total of 45 MMscf/d of production," stated John Rapach, Sterling's Chief Operating Officer. "However, the A05 production rate is somewhat lower than expected, as our petrophysical analysis suggests that the well had encountered the best sands yet found across the field. RWE Dea as operator of Breagh is evaluating the data and may recommend remedial actions which could be conducted in early 2014," added Mr. Rapach.
Sterling 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 common shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG."
Neither the TSX Venture Exchange nor its Regulations 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.
Filer Profile No. 00002072
All statements included in this news 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 production, 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 news 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 news 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 news release should not be used for purposes other than for which it is disclosed herein.
SOURCE: Sterling Resources Ltd.
For further information:
visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, firstname.lastname@example.org
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, email@example.com
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, firstname.lastname@example.org