23rd Sep 2009 07:00
23rd September 2009
STERLING ENERGY PLC
("Sterling" or the "Company")
Kurdistan Rig Contract Awarded
Sterling (symbol: SEY), an AIM listed independent oil & gas exploration and production company with interests in the USA, Africa and the Middle East, is pleased to provide the following update on its operations in Kurdistan.
In the Sterling operated Sangaw North block (53.33% WI) preparations are continuing for the drilling of the first exploration well on the licence, Sangaw North-1. The surface well location, total drilling depth of 3,660m (with an option to drill to 4,160m) and rig contract have all been approved by both the Kurdish Regional Government and the joint venture partners. The rig contract has been awarded to Sakson Egypt and the well is planned to spud in late 4Q 2009.
An independent review of the Sangaw North prospect undertaken by RISC (UK) Ltd estimates the unrisked prospective resources for the Cretaceous reservoir interval (at a depth of 1,700-2,900m) are 804 mmbbls (gross), with a chance of success of 27 percent. RISC (UK) Ltd considers that condensate and gas are as likely to be discovered in Sangaw North as oil. Additional potential is also present in the deeper Jurassic and Triassic intervals. Historical success rates for recent exploration wells drilled in the Kurdistan region are around 50%.
Enquiries
Sterling Energy Plc (+44 20 7405 4133) Web site: www.sterlingenergyplc.com
Alastair Beardsall, Chairman
Graeme Thomson, CEO
Evolution Securities (+44 20 7071 4300)
Rob Collins
Chris Sim
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Grosse, B.Sc (Hons) Geology & Geophysics (1980), Exploration & Technical Director of Sterling Energy Plc, who has been involved in the oil industry for over 28 years, is the qualified person that has reviewed the technical information contained in this press release.
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