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Sterling Resources to beging North Sea Breagh gas production by May 2013

CALGARY -- Sterling Resources announced the results of production testing from the initial three wells completed as part of the on-going Breagh Development in the North Sea with start of production in early May 2013.

All well results fall within the range of expected outcomes from the reservoir simulation model. Once normalized to reflect the expected sales level of wellhead pressure, the current three well capacity is estimated at 88 MMscfd 29 MMscfd per well which is in line with the Field Development Program (FDP) general assumption, according to Sterling.

"Attainment of expected capacity from the first three wells is a good start for the Breagh Development," stated John Rapach, Sterling' s COO. "The newly drilled A3 well is the biggest producer to date with a production capacity of circa 58 MMscfd at initial production conditions. The other two producers, A1 and A2 redrills of the 42/13-3 and 42/13-5Z wells tested at maximum rates of 16 and 18 MMscfd respectively. We are evaluating the initial performance of all of these wells, as this early completion experience will be used to refine and possibly improve the performance of subsequent wells," added Mr. Rapach.

Drilling will now commence on the fourth development well. With the remaining development wells expected to complete every 60 to 70 days per well, five wells are anticipated to be available for production in early May 2013. Total initial production following completion of the fifth well is expected to be approximately 150 MMscfd.

12/13/2012

 

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