Sterling Resources Ltd. announces successful completion of the Doina-4 appraisal well

Sterling Resources Ltd. announces successful completion of the Doina-4 appraisal well

Thursday, August 14th 2008

Sterling Resources Ltd. report that it has completed the open-hole logging of the Doina-4 well after having reached a target depth of 1,250 metres approximately 17 days after the well was spudded. (Sterling 65-percent working interest after farm out). Initial results have confirmed the northerly extension of the gas bearing Doina Main Sand reservoir, some 1.6 kilometres north of the previously drilled Doina wells. In addition, prospective gas bearing intervals were noted both above and below the main reservoir body.

The Doina Main Sand reservoir was encountered some 3 metres higher than anticipated, and had a significant gas show on drilling. Subsequent electric wireline logging has confirmed a reservoir section similar to previous Doina wells with excellent sand intermingled with more silty intervals. The top of the Doina Main Sand section is at a 1,094 metres true vertical depth subsea (tvdss) with the base of the gas bearing reservoir picked at 1,125 metres tvdss, which is consistent with the gas water contact noted in the previous Doina wells. This interval contains an estimated gross 12 metres of high quality reservoir with porosities in excess of 30%, again similar to previous wells. Given the equivalent reservoir was tested in the Doina-2 well at 17.5 million cubic feet per day, and calculations for the current well indicate similar productivity potential, the well will now be suspended for possible re-entry as part of any future development program.

“The favourable results from the well confirm the extension of the Doina Main Sand reservoir trend northwards. This further enhances the potential of the Doina field, with the important observation that the reservoir in the Doina field has been shown to be laterally extensive. The overall impact of the well results on total gas in place will be assessed in the coming weeks,” commented Stephen Birrell, Sterling’s Vice President, Romanian Operations.

“We are pleased that the second offshore well in Romania has been drilled on schedule and we would like to thank the rig owners Grup Servicii Petroliere S.A. (GSP) and our drilling management team North Sea Well Engineering Ltd. (NORWELL) on behalf of the partnership. The rig will now move to drill the Ana-2 well, which is follow-up to the successful Ana-1 well, to be directionally drilled in order to assess the northern portion of Ana. Results from the Ana-2 well are expected in early September,” noted Stewart Gibson, Chief Executive Officer of Sterling.

Sterling Resources is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets located in the United Kingdom, Romania, and France. The common shares are listed and posted for trading on the TSX Venture Exchange under the symbol “SLG”.

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