Sterling Resources Announces North Sea Asset Swap
Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company"), is pleased to announce the execution of an agreement with Enquest PLC under the terms of which Sterling will acquire Enquest's 10 percent interest in its F-Quad and L-Quad licences in the Dutch North Sea, and Enquest will acquire Sterling's 50 percent interest in the Cairngorm licence (Block 16/3d) in the UK North Sea.
- (1888PressRelease) May 18, 2012 - The agreement is subject to regulatory and partner approval.
Following closing of the agreement, Sterling Resources Nederlands BV, a wholly owned subsidiary of Sterling Resources, will now as operator hold a 35 percent interest in the shallow geological horizons of blocks F14, F16, F17a, F18 and L01b. The other partners are Petro Ventures Netherlands B.V. with a 25 percent interest and EBN with a 40 percent interest. The five blocks cover 1,550 square km located approximately 80 km offshore in a water depth of 45 metres. The shallow geological horizons of these blocks contain four oil discoveries, with several wells which tested oil at flow rates of up to 4,800 barrels per day with API gravities in excess of 30 degrees.
Earlier in 2012 Sterling drilled an appraisal well (F17-09) on Block F17a which confirmed, similar to what was observed in previous wells, an oil water contact (OWC) at approximately 2000 metres sub-sea and a 10 metre gross oil interval (6 metre net oil interval) within the Jurassic Schieland formation. Communication with previously drilled well F17-03 was also indicated with an updip potential resultant oil column of up to 120 meters.
"The Cairngorm licence, which was awarded in the UK 26th Offshore Licensing Round earlier this year, is not a core asset for Sterling," stated Mike Azancot, Sterling's President and CEO. "We are therefore pleased to enter into this mutually beneficial agreement with Enquest, as our F-Quad and L-Quad licences in the Dutch North Sea remain highly prospective and this transaction will further optimize Sterling's portfolio of assets," noted Mr. Azancot.
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".
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this releasee.
Filer Profile No. 00002072
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 purpose other than for which it is disclosed herein.
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, mike.azancot ( @ ) sterling-resources dot com
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, david.blewden ( @ ) sterling-resources dot com
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, george.kesteven ( @ ) sterling-resources dot com
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