Sterling Resources Ltd. ("Sterling") (TSXV:SLG.V)
is pleased to announce that it has executed reciprocal agreements with
Valiant Petroleum plc to facilitate the exchange of certain North Sea
assets. The transaction, which is subject to a number of conditions
precedent, including the approval of the Department of Energy and Climate
Change (DECC), will result in Sterling acquiring a 25 percent interest and
operatorship of Blocks 210/29c and 210/30b in the Northern North Sea.
In exchange, Valiant will obtain a 40 percent interest in Sterling's Central
North Sea licenses in Blocks 21/30f and 22/26c, which have been offered for
award to Sterling in the most recent 26th UKCS licensing round.
Blocks 210/29c and 210/30b are adjacent to Blocks 210/29a and 210/30a
in which Sterling as operator has discovered and is currently delineating the
Cladhan field. In addition to Sterling (25 percent), and Valiant Exploration Limited (30 percent),
the other remaining partners in Blocks 210/29a and 210/30b will be Wintershall UK North Sea Ltd. (25 percent) and Agora Oil
and Gas UK Ltd. (20 percent) on completion of the transaction.
"We are glad to be partnered with Valiant in the Central North
Sea licenses which contain a number of exploration and appraisal
opportunities which both parties are keen to evaluate," stated Mike Azancot, Sterling's President and CEO.
"Increasing our involvement in the greater Cladhan
area is of significant importance as we continue to determine the extent of
the hydrocarbon potential adjacent to the discovery in our current licenses
to the North and West. We are assessing the possibility of drilling a
well in a mapped southern channel later this year on the Blocks acquired
through this transaction," added Mr. Azancot.
Sterling Resources Ltd. is a Canadian-listed international oil and gas
company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania,
France and the Netherlands. The shares are listed and posted for
trading on the TSX Venture Exchange under the symbol "SLG".
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Filer Profile No. 00002072
Forward-Looking Statements
All statements included in this press release that address activities,
events or developments that Sterling expects, believes or anticipates will or
may occur in the future are forward-looking statements. In addition,
statements relating to reserves or resources are deemed to be forward-looking
statements as they involve the implied assessment, based on certain estimates
and assumptions that the reserves and resources described can be profitably
produced in the future.
These forward-looking statements involve numerous assumptions made by
Sterling based on its experience, perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate in the circumstances. In addition, these statements involve
substantial known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other-forward
looking statements will prove inaccurate, certain of which are beyond
Sterling's control, including: the impact of general economic conditions in the
areas in which Sterling operates, civil unrest, industry conditions, changes
in laws and regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in commodity prices, foreign exchange or interest rates, stock
market volatility and obtaining required approvals of regulatory authorities.
In addition there are risks and uncertainties associated with oil and gas
operations. Readers should also carefully consider the matters
discussed under the heading "Risk Factors" in the Company's Annual
Information Form.
Undue reliance should not be placed on these forward-looking
statements, as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. Sterling's actual
results, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements. These
statements speak only as of the date of the press release. Sterling does not
intend and does not assume any obligation to update these forward-looking
statements except as required by law.
Financial outlook information contained in this press release about
prospective results of operations, financial position or cash flows is based
on assumptions about future events, including economic conditions and
proposed courses of action, based on management's assessment of the relevant
information currently available. Readers are cautioned that such
financial outlook information contained in this press release should not be
used for purpose other than for which it is disclosed herein.
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