Offshore staff
CALGARY, Canada – Sanction for Phase 2 of the Breagh gas development in the southern UK North Sea will go through later this year, according to partner Sterling Resources (CVE:SLG).
A decision will be taken on the optimum form of incremental development following completion of a subsurface study conducted jointly by Sterling and operator RWE Dea UK. This takes into account results of reprocessed 3D seismic and better than expected results from the first two Phase 1 development wells.
Earlier this year, Sterling agreed to sell a13.5% interest in the North Cladhan area in the UK northern North Sea (blocks 210/29a and 210/30a) to TAQA for $47 million.
Sterling could net a further payment of up to $10 million if after first production, proven plus probable reserves are certified to be in the range 30-45 MMbbl for 100% of the Cladhan field.
A final field development program should be submitted around early October, followed by probable approval early in 2013, with TAQA assuming operatorship.
Sterling has engaged a financial advisor to sell up to all of its remaining 26.4% interest in the Cladhan field, and hopes the transaction will be completed by year-end.
8/22/2012
