Breagh Field Back in Production

Sterling Resources Ltd. has announced the restart of production from the RWE Dea-operated Breagh gas field in the UK part of the North sea, on December 27, 2013.

This follows a period of approximately seven weeks shut-in as a result of a significant production incident on November 7th, as reported earlier. The investigation into the production incident continues with an expected completion date at the end of January 2014.

However, interim feedback from the investigation has identified the necessary actions to permit production restart and continuation of re-commissioning activities following the replacement of the barred tee-junction and various other repairs to the inlet to the gas plant.

Initial production rates from the field will be variable as these commissioning activities progress. In addition, a two day planned shutdown is scheduled for the first week of January 2014 to allow the Ensco 70 drilling rig to move off location and transfer to a shipyard for necessary work required as part of normal marine certification requirements.

Breagh well A07 has been drilled to total depth having encountered reservoir sands in accordance with prognosis. The well has been suspended with the completion tubing run and the Xmas tree set. The Ensco 70 rig is scheduled to return early in the second quarter of 2014 to bring the A07 well into production using hydraulic stimulation, before completing the Phase 1 drilling program by drilling an additional production well A08. Completing well A07 using hydraulic stimulation is planned to provide enhanced production to Phase 1, while also providing valuable information to support Phase 2 investment decisions.

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Press Release, December 30, 2013