UK: Breagh Field Reserves Up, Sterling Reports

Sterling Resources Ltd. announces increased Company interest reserves numbers for the Breagh field located in the UK Southern North Sea as a result of the successful drilling of appraisal well 42/13a-6 earlier this year. These Company interest reserves have been independently prepared in accordance with the standards contained in the COGE Handbook by RPS Energy, Sterling’s reserves evaluator, as of May 31st, 2011 in a report dated June 12th, 2011. This report pertains only to the Breagh field.

Proved Reserves have risen from 23.6 million barrels of oil equivalent (MMboe) at year end 2010 to 28.2 MMboe, an increase of approximately 19 percent. Similarly, an increase in the Proved plus Probable Reserves has been realized rising from 31.6 MMboe to 35.3 MMboe, an increase of 12 percent. Proved plus Probable plus Possible Reserves have risen from 39.0 MMboe to 44.1 MMboe, an increase of 13 percent.

“These updated reserves numbers clearly indicate the impact of our drilling success at East Breagh earlier this year. The 42/13a-6 well was drilled approximately six kilometers from the 42/13-3 and 42/13-5Z wells both of which are located on the western side of the field which will be developed utilizing the Breagh Alpha platform,” stated John Rapach, Sterling’s Chief Operating Officer. “The success of the 42/13a-6 well is great news for the Breagh development story and the partnership has now commenced conceptual and environmental studies for a second phase of development, most likely involving a second platform on the eastern side of the field. These studies will form the basis of an addendum to the current Field Development Program (FDP) for the Breagh Field submitted to the Department of Energy and Climate Control. The second phase addendum is planned to be submitted during the fourth quarter of 2011. First gas from the intended Breagh Bravo platform would be expected during 2013,” added Mr. Rapach.

The full field project remains on schedule and budget. Fabrication of the jacket and topsides for the Breagh Alpha platform are progressing towards tow-out and installation is scheduled for mid-August. Pipelay operations have progressed well during May and June with all but three kilometers of the 20 inch production pipeline and the majority of the three inch methanol lines constructed and laid on the seabed by the Allseas pipelay vessel Lorelay. The beach crossing has been completed with a Horizontal Directional Drilling (HDD) installation of the various pipelines and services under the Coatham sand dunes and beach to a point one kilometer offshore. “It’s a fantastic time for the development and satisfying to see this project now taking shape after Sterling Resources’ start to the Breagh story with the drilling of the 42/13-3 well in 2007,” added Mr. Rapach.

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Source:Sterling Resources , July 6, 2011;