Improved Breagh well results alter next-phase plans

Sterling Resources Ltd. (TSX-V: SLG) says the partners in the Breagh gas field in the UK southern North Sea will revise the Phase 2 development plan.

Offshore staff

CALGARY, Canada -- Sterling Resources Ltd. (TSX-V: SLG) says the partners in the Breagh gas field in the UK southern North Sea will revise the Phase 2 development plan.

Previously,operator RWE Dea and Sterling aimed to submit proposals by June 30. However, following results of the recently drilled A03 production well they are looking at alternatives, and expect to submit a revised plan to the UK Department of Energy and Climate Change (DECC).

DECC has accepted the revised schedule, and full development approval is likely by June 2014, allowing first gas to flow from Phase 2 by summer 2016.

A03 appeared to penetrate a Carboniferous section with better porosity and higher permeability. Once results come in from the A05 well, currently drilling, the geological model will be further refined for the north and northeastern areas of Breagh.

The partners will use thenew well data to determine necessary adjustments to the current Phase 2 plan.

“With the large areal extent of the Breagh field of approximately 80 sq km [31 sq m], further offshore facilities will be required for the full development of the field,” said John Rapach, COO for Sterling Resources. “Both RWE Dea and Sterling are committed to exploiting the eastern side of the Breagh field, and will tailor well design and facility requirements for Phase 2 based on well results and production data from Phase 1.

“The A05 well has encountered a similar geological section to the A03 well, which production tested at 56 MMcf/d of gas on an 88/64 in. choke with a flowing-wellhead-pressure of 1,344 psi, and we are very pleased with the results of the well which provides a good stratigraphic correlation.”

After drilling of A05 is done, a production test will be performed, followed by perforation of the A04 well and further production testing. These operations should be completed by early August, after which the rig will relocated to the A06 well site to resume drilling from the 20 in. casing set prior to drilling the A05 side track.

Operations at the gas receptionterminal in Teeside, northeast England, are progressing with first production from Breagh Phase 1 expected in August. All seven Phase 1 wells should be onstream by end-2013.

7/5/2013

More in Drilling & Completion