29th Jun 2005 07:00
Sterling Energy PLC29 June 2005 29 June 2005 STERLING ENERGY PLC ("Sterling" or the "Company") Successful Well Operations in Gulf of Mexico Sterling Energy Plc, the London AIM listed (SEY) independent international oil &gas exploration and production company, today announced the successful outcomefrom the operations of two offshore wells in the Gulf of Mexico. A work-over ofa third well has commenced. Eugene Island 268 - Sterling has successfully entered and recompleted the A-1well at Eugene Island 268. The well was recompleted in the Lower Pleistocene EOand EK sands with a sliding collar production assembly. The well tested grossgas flows of 3.9 million cubic feet per day (mmcfd) from the deeper EO Sand. Therig is in the process of moving off location following which the well will behooked up to the sales line. The upper recompletion in the shallower EK Sandwill be opened for production upon depletion of the EO Sand. Sterling has a 60% working interest and 45% net revenue interest in the A-1well. Mustang Island 749 - Sterling has successfully drilled and completed the MU 749GU No. 2 well adjacent to existing Sterling production at Mustang Island. Thewell encountered 30 feet of net pay sand approximately 30 feet high structurallyto the other productive wells which have been drilled in this Cib Haz Sandreservoir. Although Sterling encountered operational problems and delays indrilling the No. 2 well, the well has now been completed and shut in followingpositive pressure tests on the reservoir. Fabrication of the productionfacilities has now commenced following which the No. 2 well will be connected toSterling's Mustang Island 747 Platform for production. The rig has now moved offlocation to Matagorda Island. After completing a farmout during drilling, Sterling owns a 75% working interestand 56.4% net revenue interest in the No. 2 well. Matagorda Island 520 - work-over operations have now commenced on the No. 16well in the El Gordo field where Sterling has a 57.3% working interest and 45.8%net revenue interest. Sterling Finance Director, Graeme Thomson said; "We are delighted with the results from these two wells which represent asignificant step towards our target of doubling production from the Gulf ofMexico by the year end. With forward gas prices averaging over $7.50 /mmbtu forthe next year we are looking forward to strong cash flow from these assets." For further information contact: Harry Wilson, Chief Executive, Sterling Energy plc: 01582 462 121Graeme Thomson, Finance Director, Sterling Energy plc: 01582 462 121Martin Jackson, Citigate Dewe Rogerson: 020 7282 2888Rob Collins, Evolution Securities Limited: 020 7071 4311 www.sterlingenergyplc.com Stock Symbol: SEY This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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