Sterling Resources Ltd. announces successful completion of the Ana-2 appraisal well

CALGARY, Sept. 16 /CNW/ - Sterling Resources Ltd ("Sterling") (TSXV: SLG.V) is pleased to announce the successful completion of the Ana-2 appraisal well, in the Romanian Black Sea. Ana-2 was drilled as a follow up appraisal well following the Ana-1 discovery well which was drilled and tested earlier this year.

The Ana-2 well encountered gas within the Doina Main Sand Formation at 1,121 metres true vertical depth subsea (TVDss), some 10 metres shallower than originally mapped. The well has been extensively evaluated with electric logs, MDT pressure tests and a collection of wireline gas samples. These results confirm the presence of a 39 metre gas column with a net pay of 23 metres in high quality reservoir sands with porosity of up to 32% and good permeability. The pressure data also confirms a gas water contact consistent with the earlier Ana-1 well. The reservoir sands encountered in the Ana-2 well are equivalent to, or slightly better, than those encountered in Ana-1. The original Ana-1 well tested gas, at rates up to 20 million cubic feet of gas per day (MMcf/d) under conditions restricted by equipment. Under unrestricted conditions, a final completed rate in excess of 30 MMcf/d per well is anticipated.

The Ana-2 well also encountered a 5 meter gas bearing reservoir in a shallower horizon at 766 metres TVDss. This shallower horizon was also present in the Ana-1 well and will be further evaluated, in order to determine its feasibility as a new reservoir.

The well reached a total depth of 1,600 metres on September 10th and was located approximately 750 metres north west of the original Ana-1 seabed location. Following conclusion of the successful acquisition of the logging suite, the well is now being suspended and rig release is expected by the end of the week. As previously reported, Ana-2 was directionally drilled from a seabed template which provides re-entry capability for both of the Ana wells for future production.

"We are pleased with the drilling results from Ana-2 as they confirm the continuity of the reservoir sands and our theory that this area of the field may be higher than originally mapped. The well has proven positive on both accounts and we will be able to upgrade our gas in place estimates for the field based on the results of this successful well," stated Stephen Birrell, Sterling's Vice President of Romanian Operations.

"The Ana-2 well was drilled using directional technology to test the feasibility of deviated wells through the shallow overburden, above the field. The success of the well has confirmed our ability to develop this field using directional wells from a common drill centre. This will permit us to optimize future field development," commented John Rapach, Vice President of Operations for Sterling.

Stewart Gibson, Chief Executive Officer of Sterling, saluted the team responsible for the successful completion of Ana-2: Grup Servicii Petroliere S.A. (GSP), the drilling contractor, North Sea Well Engineering Ltd. (Norwell), Sterling's drilling management team, and all of the subsurface and operational staff. "On behalf of Sterling we wish to express thanks to all of the members of this team, whose diligence and technical expertise resulted in the successful execution of the Ana-2 well," noted Mr. Gibson.

Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania and France. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".

    
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Forward-Looking Statements

All 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 purposes other than for which it is disclosed herein.

Contacts

visit www.sterling-resources.com or contact: George Kesteven
Manager
Investor Relations
Phone: (403) 215-9265
Fax: (403) 215-9279
george@sterling-resources.com

Stewart G. Gibson
Chief Executive Officer
Phone: 44-133082-6717
Mobile: 44-7768-042219
stewart@sterling-resources.co.uk