Sterling Discovers Gas Offshore Romania

Sterling Discovers Gas Offshore Romania

Sterling Resources Ltd. has made a gas discovery following the drilling of the Eugenia-1 well drilled in the Black Sea offshore Romania. The well reached a total measured depth (“MD”) at 2,276 metres (2,248 metres subsea).

The preliminary log analysis indicates a total of 22 metres of gas-bearing Late Cretaceous sandstones, mainly within two intervals. Average porosity ranges from 10 to 20 percent and average gas saturations range from 55 to 62 percent. The sandstone units are located within the interval 1,938 to 2,038 metres MD. Formation pressure data and recovered gas samples from open-hole logging tools confirm moveable gas. Further detailed analysis of logs, pressure data and samples is ongoing.

In addition to these Late Cretaceous sandstones, a further 20 metre zone of interest is evident within an Eocene limestone section from 1,900 to 1,938 metres. The interval was drilled with gas shows but attempts to collect pressure data were unsuccessful although this is not an uncommon occurrence in carbonates where matrix porosity is limited. Log analysis will be undertaken to determine if the Eocene limestone could be gas bearing and producible as was the case in the adjacent Olimpiyskaya well.

“The Eugenia-1 well is the first exploration well to be drilled on the 2,312 square kilometre Pelican Block which is equivalent in size to ten United Kingdom North Sea Blocks,” stated Pat Whitley, Sterling’s Vice President Exploration International. “The presence of gas in both the Eocene limestone and Cretaceous sand sections in this first exploration well is a great step forward for exploration in the Pelican Block.”

A third, shallower but high-risk objective of the well was to test the stratigraphy of a large Oligocene slump or fan structure as outlined by seismic. Although drilled at a downdip location to enable drilling of the deeper Eocene and Late Cretaceous main objectives from the same well location, 100 metres of good quality sandstones with some minor gas shows were encountered. “With the quality and quantity of potential reservoir sands, the Oligocene structure remains an interesting prospect updip of the current well,” added Mr. Whitley.

“We are delighted to have drilled two exploration wells this year in our highly prospective blocks in the Black Sea safely and on budget and found hydrocarbons in both. We have achieved our long-stated objectives to return to operations in Romania and now plan to review these well results in planning an active work program in both blocks over the next couple of years,” stated Mike Azancot, Sterling’s President and CEO.

Midia Resources SRL, a wholly owned subsidiary of Sterling Resources Ltd (65 percent working interest), is the operator of the Midia and Pelican Blocks in offshore Romania and with partners Petro Ventures Europe BV (20 percent) and Gas Plus International BV (15 percent).

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”.

December 14, 2012