Cladhan side track confirms `significant stratigraphic trap’

Sterling Resources has proven further oil at the Cladhan discovery in the UK northern North Sea.

Offshore staff

CALGARY, Alberta -- Sterling Resources has proven further oil at the Cladhan discovery in the UK northern North Sea.

According to partner EnCore Oil, the appraisal well in block 210/29a was drilled as a side track into the Upper Jurassic channel sands, around 3,150 ft (960 m) to the south of the 2008 discovery well. The side track encountered high-quality oil-bearing sandstones, yielding a gross hydrocarbon column of 159 ft (48.5 m) with 102 ft (31 m) of net hydrocarbon pay. Average porosity in the sandstone was 21%, with average oil saturations of 86%.

EnCore adds that modular dynamic test sampling for formation pressures and oil samples suggest a strong correlation in terms of oil type and reservoir pressure with the discovery well. Taken together, the two wells have confirmed a total hydrocarbon column of more than 273 ft (83 m).

Drillstem testing will now get under way, followed by a second side track down dip of the original discovery well to confirm the extent of the reservoir and to establish the oil/water contact.

“This is a superb result from Cladhan and is at the upper end of our expectations regarding the quality and quantity of reservoir sands,” said Alan Booth, CEO of EnCore. “This result supports the idea that Cladhan is a significant stratigraphic trap which has still not encountered an oil water contact.”

08/31/2010

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