RNS Number:9942T
Sterling Energy PLC
08 May 2008
8 May 2008
STERLING ENERGY PLC
("Sterling" or the "Company")
OFFSHORE MAURITANIA DRILLING UPDATE
BANDA NW ST-1
Sterling Energy (AIM: SEY), an independent oil & gas exploration and production
company with interests in North America, Africa and the Middle East, notes the
announcement made on 07 May 2008 by Roc Oil Company Limited ("ROC") in respect
of the Banda NW ST-1 well, PSC Area A and PSC Area B, offshore Mauritania (see
below).
Sterling has a royalty interest in PSC Area A and PSC Area B, plus an economic
interest in the Chinguetti Field, PSC Area B, through a funding agreement with
the State oil company Societe Mauritanienne des Hydrocarbures, who own a 12%
interest in the field. At present oil prices, the amount received by Sterling
under the royalty is around $15 per bbl sold. The royalty agreement also
provides for payments to Sterling for gas produced on an oil equivalence basis.
The ROC Oil announcement:
"Roc Oil (Mauritania) Company, a wholly owned subsidiary of ROC, advises that as
at midnight (local time) on 3 May 2008, the Banda NW ST-1 sidetrack well had
been suspended.
The results of the wireline logging, Modular Dynamic Tester (MDT) pressure
testing and sampling indicate that Banda NW ST-1 intersected an 85 metre gross
gas column, with 15 metres (18%) net gas pay and a 15 metre gross oil column,
with 10 metres net oil pay (67%). The fluid contacts were as expected and the
well is interpreted to be in communication with the original Banda-1 discovery
well drilled in 2002, approximately 2 kilometres to the east. The Banda Field
is in approximately 300 metres of water and spans PSC Area A and PSC Area B.
The Atwood "Hunter" will commence with the planned well intervention work on the
Chinguetti Field, once it has completed the move from Banda NW ST-1."
For further information contact:
Sterling Energy Plc (+44 20 7405 4133) www.sterlingenergyplc.com
Graeme Thomson, CEO
Harry Wilson, Deputy Chairman
Evolution Securities (+44 20 7071 4300)
Rob Collins, Director
Citigate Dewe Rogerson (+44 207 628 9571)
Media enquiries: Martin Jackson
Analyst enquiries: George Cazenove
This information is provided by RNS
The company news service from the London Stock Exchange
END
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