First Gas Sales from Breagh Field Expected Late August (UK)

Sterling Resources Ltd. is providing an update regarding the impending commencement of first production from the Breagh field.

Sterling has been advised that first gas sales from the Breagh field is now expected late August to early September due to some remedial works identified during the commissioning of the Teesside Gas Processing Plant (TGPP). These works were revealed during planned leak testing prior to the introduction of hydrocarbon gas and relate to the leak tightness of certain high pressure systems. It is not unusual to uncover pipework connection leaks at this stage with the rigorous testing processes being used. However, the number and nature of detected leaks has been more extensive than allowed for in commissioning plans. Remedial works are progressing well and while all other works are progressing as expected against an August first gas target, it is likely that slippage into early September will occur.

Offshore facilities and the export pipeline to the terminal are fully commissioned and pressurized with hydrocarbon gas, ready to commence production immediately on completion of TGPP works.