Sterling Resources hits more oil with Cladhan appraisal well

Source: Sterling Resources

Sterling Resources Ltd. (TSXV: SLG) has successfully drilled an additional well at Cladhan located on Block 210/30a in the United Kingdom North Sea. This is the first well of the current three well campaign to further appraise the extent of the Cladhan reservoir

The successful well, 210/30a-4, is located 1.1 kilometers southeast and 749 feet downdip of the most recent appraisal well 210/29a-4y, and was drilled utilizing the Transocean Prospect rig from a centrally positioned location, which was selected in order to drill three bottom hole targets without the need to relocate the rig. The objective of the 210/30a-4 well was to test the eastern extension of the northern channel system and to establish an oil water contact. 

The 210/30a-4 well was drilled to a total measured depth (MD) of 12,252 feet having encountered two separate reservoir zones. The basal reservoir has a gross vertical reservoir interval of 256 feet, containing a minimum net pay of 21 feet (pending final log analysis) with porosity up to 20 percent. The net to gross encountered here, whilst lower than the exceptional values experienced in the 210/29a-4z well which was located in the centre of a channel sequence, is within the typical range predicted in the geological model for this type of interbedded sand/shale system. Pressure measurements taken within the basal reservoir zone confirm continuity with the updip wells drilled in the northern channel during 2010. No oil water contact has been observed and consequently the minimum effective vertical oil column is currently 1,228 feet. 

In addition to the basal reservoir, the 210/30a-4 well also encountered a younger oil bearing sandstone with 13 feet of net pay contained within a separate pressure system. "Although further work is required to delineate these reservoir sequences, the results from this well and recent seismic inversion tests provide encouragement that these sands will thicken downdip within the fan area to the east," stated David Findlater, Sterling's Vice President for Exploration UK. 

"The excellent results from this well continue to increase the size of the northern channel reservoir at Cladhan," stated Mike Azancot, Sterling's President and CEO. "With these very encouraging results, and given the continuing height of the oil column, the next planned well will be a sidetrack 1.8 kilometers to the southeast of the 210/30a-4 well, targeting what is believed to be a turbidite fan system located even further downdip. Once this second well of the current campaign is completed in approximately 20 days, we then intend to drill a second sidetrack well into an as yet undrilled channel system, the Central channel. We are clearly proceeding on track with our appraisal of the field and enhancing our understanding of the reservoir to determine the optimum development case," added Mr. Azancot. 

Sterling holds a 39.9 percent interest in Cladhan and is the operator of the License P1064. Partners are Wintershall (UK North Sea) Ltd. 33.5 percent, Encore Petroleum Ltd. 16.6 percent and Dyas UK Ltd. 10 percent.

We would also like to report the results of the Grian well 48/28b-2, which was completed in March. The well encountered good quality Leman Sandstone at a total measured depth of 6,148 feet, however the well failed to find gas and was plugged and abandoned. Drilling the Grian well has now fulfilled all license commitments. Sterling holds a 57 percent interest and is operator of the License P1540. The remaining 43 percent is held by partner GB Petroleum Ltd.



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