Sterling Resources announces 2012 year-end NI 51-101 reserves and resources information

Sterling Resources announces 2012 year-end NI 51-101 reserves and resources 
information 
CALGARY, March 26, 2013 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) 
("Sterling" or the "Company"), an international oil and gas company with 
exploration and development assets in the United Kingdom, Romania, France and 
the Netherlands, is pleased to announce the filing of its annual reserves 
disclosure pursuant to National Instrument 51-101 ("NI 51-101") and an update 
of the Company's Contingent and Prospective Resources, both as at December 31, 
2012. 
The Company has increased its Proved and Proved plus Probable Reserves by 1.7 
and 2.7 million barrels of oil equivalent ("MMboe") respectively, an increase 
of approximately 8 percent over year-end 2011. This increase can largely be 
ascribed to the reclassification of Contingent Resources to Reserves for the 
Cladhan field, offsetting reductions in Reserves attributable to the Sheryl 
and Kirkleatham fields. 
The Company has increased P50 Contingent Resources by 3.6 MMboe, an increase 
of 4 percent from year-end 2011. This increase is attributable to new 
properties added to the Company's portfolio in the UK and Romania and 
exploration success with the Eugenia-1 well offshore Romania, offsetting the 
reduction attributed to reclassification of the Cladhan field Contingent 
Resources to Reserves. 
The Company has increased Best Estimate Prospective Resources by 103.3 MMboe 
equivalent, an increase of 22 percent over year-end 2011. This increase is 
due to new properties added to the Company's portfolio in the UK, the 
Netherlands and Romania and new prospectivity identified within the Company's 
previously held properties. 
"Sterling has continued to successfully build its portfolio of assets during 
2012," stated Mike Azancot, Sterling's CEO. "We have progressed the Cladhan 
Resources to Reserves and added significant acreage to our holdings in the UK, 
Netherlands and Romania. Year-on-year our Proved plus Probable Reserves have 
increased from 32.6 to 35.3 MMboe, P50 Contingent Resources have increased 
from 93.9 to 97.5 MMboe, and Best Estimate Prospective Resources have 
increased from 460.3 to 563.7 MMboe," added Mr. Azancot. 
Reserves and Resources Summary (Based on Forecast Prices and Costs)((1) ) 
 _____________________________________________________________________
|            |Company Share Gross and Net|Net Present Value Before Tax|
|            |         Reserves          |           ((5))            |
|            |  as at December 31, 2012  |  as at December 31, 2012   |
|            |       (MMboe)((2))        |  (Millions of Canadian $)  |
|____________|___________________________|____________________________|
|            | Total|  Proved|Proved plus| Total|  Proved| Proved plus|
|            |Proved|    plus|   Probable|Proved|    plus|    Probable|
|            |      |Probable|       plus|      |Probable|        plus|
|            |      |        |   Possible|      |        |    Possible|
|____________|______|________|___________|______|________|____________|
|Breagh ((3))|  22.6|    30.9|       39.9|   620|     826|       1,001|
|____________|______|________|___________|______|________|____________|
|Cladhan (   |   2.7|     4.4|        5.9|    58|     132|         186|
|(4))        |      |        |           |      |        |            |
|____________|______|________|___________|______|________|____________|
|Company     |  25.3|    35.3|       45.8|   677|     958|       1,187|
|Total (     |      |        |           |      |        |            |
|(6,11))     |      |        |           |      |        |            |
|____________|______|________|___________|______|________|____________| 
 _____________________________________________________________________
|   |      |  Unrisked Contingent  | Unrisked Prospective Resources ( |
|   |      |  Resources ((7)(9))   |             (8)(10))             |
|   |      |as at December 31, 2012|     as at December 31, 2012      |
|   |      |     Company Share     |          Company Share           |
|___|______|_______________________|__________________________________|
|   |      |       |       |       |     Low|        Best|        High|
|   |      |     1C|     2C|     3C|Estimate|    Estimate|    Estimate|
|___|______|_______|_______|_______|________|____________|____________|
|   |      |P(90) (|P(50) (|P(10) (| P(90) (|P(50) ((10))|P(10) ((10))|
|   |      |  (10))|  (10))|  (10))|   (10))|            |            |
|___|______|_______|_______|_______|________|____________|____________|
|Gas|Bcf   |    335|    429|    522|   2,031|       2,830|       4,004|
|___|______|_______|_______|_______|________|____________|____________|
|Oil|MMbbls|     21|     26|     33|      47|          92|         193|
|___|______|_______|_______|_______|________|____________|____________| 
 __________________________________________________________________
|   |      |Unrisked Unconventional |   Unrisked Unconventional    |
|   |      |       Contingent       |         Prospective          |
|   |      |Resources as at December| Resources as at December 31, |
|   |      |        31, 2012        |             2012             |
|   |      |     Company Share      |     Company Share ((12))     |
|___|______|________________________|______________________________|
|   |      |       |       |        |     Low|    Best|        High|
|   |      |     1C|     2C|      3C|Estimate|Estimate|    Estimate|
|___|______|_______|_______|________|________|________|____________|
|   |      |P(90) (|P(50) (| P(10) (| P(90) (| P(50) (|P(10) ((10))|
|   |      |  (10))|  (10))|   (10))|   (10))|   (10))|            |
|___|______|_______|_______|________|________|________|____________|
|Gas|Bcf   |      -|      -|       -|     300|   1,449|       7,000|
|___|______|_______|_______|________|________|________|____________|
|Oil|MMbbls|      -|      -|       -|       -|       -|           -|
|___|______|_______|_______|________|________|________|____________| 
Notes: 
(1)  Estimates of Reserves and Future Net Revenue have been made 


     assuming the development of each property in respect of which the
     estimate is made will occur, without regard to the likely
     availability to the Company of funding required for that
     development. 
      

(2)  Gross before royalties.  Possible reserves are those additional
     reserves that are less certain to be recovered than probable
     reserves.  There is a 10 percent probability that the quantities
     actually recovered will equal or exceed the sum of proved plus
     probable plus possible reserves. In this instance the gross
     values are the same as the net values because the royalty is
     zero.
      

(3)  MMboes may be misleading, particularly if used in isolation.  A
     BOE conversion ration of 6Mcf : 1bbl is based on an energy
     equivalency conversion method primarily applicable at the burner
     tip and does not represent a value equivalency at the wellhead. 
      

(4)  Oil.  
      

(5)  Discounted at 10 percent per annum.
      

(6)  Company Reserves totals are arithmetic aggregations of multiple
     estimates, which statistical principles indicate may be
     misleading as to volumes that may actually be recovered. Readers
     should give particular attention to the estimates of individual
     classes of Reserves and appreciate the differing probabilities of
     recovery associated with each class. For Proved (1P) Reserves
     these totals have a higher than 90 percent probability of
     occurring on an unrisked basis. For Proved plus Probable plus
     Possible (3P) Reserves, these totals have a lower than 10 percent
     probability of occurring on an unrisked basis.
      

(7)  Contingent Resources are those quantities of petroleum estimated
     as of a given date to be potentially recoverable from known
     accumulations using established technology or technology under
     development, but which are not currently considered to be
     commercially recoverable due to one or more contingencies. The
     Resources volumes shown represent probabilistic totals of several
     entities within each licence or block area. There is no certainty
     that it will be commercially viable to produce any portion of the
     Contingent Resources.
      

(8)  Prospective Resources are those quantities of petroleum estimated
     as of a given date to be potentially recoverable from
     undiscovered accumulations by application of future development
     projects. There is no certainty that any portion of the
     Prospective Resources will be discovered or, if discovered, that
     it will be commercially viable to produce any portion of the
     Resources. These Prospective Resources are in areas of the field
     or geological horizons, in which the presence of hydrocarbons
     require confirmation by drilling.
      

(9)  Company Resources totals shown by Resource category are
     statistical aggregates of unrisked Resources at a company level.
     For Contingent Resources the statistical aggregates assume no
     dependencies between discoveries and for Prospective Resources
     these statistical totals assume no dependencies between prospects.
      

(10) The P(50) or 2C is considered to be the best estimate of the
     quantity that will actually be recovered. If probabilistic methods
     are used there is at least a 50 percent probability P(50) that the
     quantities actually recovered will equal or exceed the estimate.
     Similarly, the 1C or P(90) and 3C or P(10) represent the low and
     high estimates respectively.
      

(11) The estimates of Reserves and Resources for individual properties
     may not reflect the same confidence level as estimates of
     Reserves and Resources for all properties, due to the effects of
     aggregation.
      

(12) Unconventional Prospective Resources are based on the RPS
     assessment of Silurian Wenlockian shale gas potential in the Sud
     Craiova licence in Romania.  RPS calculates the potential based
     on mapping of the extent of the Wenlockian shale, geochemical
     analysis of outcrop shale samples, a well test on licence that
     produced gas from the shale and comparison with the analogous
     Haynesville Shale gas reservoirs in the U.S.A. The volumes cited
     here are unrisked.  RPS assigns a geological probability of
     success of 5 percent to the prospect.

Operational Review

Reserves

The following details those events which have impacted the determination of 
the Company's 2012 year-end Reserves:

Breagh

In the United Kingdom Sterling continued to advance the Breagh development in 
the North Sea. On May 14, 2012 the Company announced that development drilling 
operations commenced at Breagh in the UK Southern North Sea. The Ensco 70 rig 
was deployed to start the Breagh development drilling program. During 2012, 
three wells A01 (redrill of the suspended 42/13-3), A02 (redrill of the 
42/13-5Z), and A03 wells were drilled.

On December 12, 2012 the Company announced the results of production testing 
from these initial three wells completed as part of the on-going Breagh 
development. In summary, all well results fall within the range of expected 
outcomes from the reservoir simulation model. Once normalized to reflect the 
expected sales level of wellhead pressure, the current three well capacity is 
estimated at 88 million standard cubic feet per day ("MMscfd") which is in 
line with the general assumption contained in the Field Development Program 
(FDP). The A03 well is the largest producer to date with an initial rate 
capacity expected to be approximately 58 MMscfd; and the A01 and A02 wells are 
expected to produce initially at approximately 14 and 18 MMscfd respectively, 
at platform export pressures of 1150 psig. Well flow test results are not 
necessarily indicative of long-term performance or ultimate recovery. More 
extensive flow performance will be conducted on each well once full production 
begins.

Subsequently, the fourth development well (A04) has been drilled and completed 
and drilling of the fifth development well (A05) has commenced. Production 
testing of both of these wells is anticipated to occur at the beginning of 
May, after drilling and completing the A05 well.

The Breagh Alpha platform was installed in October 2011 and is fully 
commissioned. The offshore pipeline was fully installed during 2012 and the 
onshore pipeline has been completed. Commissioning of the pipeline is 
expected to be performed during April 2013 by pressure testing, de-watering 
and "gassing-up" the offshore and onshore elements of the pipeline. 
Modifications to the Teesside Gas Processing Plant are ongoing. All pipework 
has been fully installed and work continues on cold/hot loop testing and 
commissioning continues on the plant.

Cladhan

On April 20, 2012, the Company announced the divestment of an interest in the 
Cladhan field. The Company signed a sale and purchase agreement with TAQA 
Bratani Limited ("TAQA") for the sale of a 13.5 percent interest in the North 
Cladhan area (Blocks 210/29a and 210/30a) for an initial consideration of 
US$47 million including an allocation to tax allowances. The Company's equity 
position following the transaction was 26.4 percent.

The initial consideration was satisfied in three instalments: US$22.3 million 
was paid at completion, US$4.3 million was paid early in 2013 following the 
achievement of certain milestones and the balance as a carry of part of 
Sterling's development expenditure in respect of Cladhan up to a maximum carry 
amount, adjusted for tax, of US$53.6 Million. Subsequently the Company has 
agreed with TAQA to apply the US$53.6 million carry element additionally 
against pre-sanction long lead items of the development (subsea tie-in and 
linepipe) and front-end engineering and design for the pipeline and host 
platform modifications.

The Company announced on March 5, 2013 that the FDP for the field had been 
submitted to the Department of Energy and Climate Change ("DECC") by the 
Operator, and the partnership now expects to gain approval for the FDP by the 
end of the April 2013. With the submission of the FDP for a three well 
development of the field and significant progress of a transportation, 
processing and operating services agreement and construction tie-in agreement 
to develop the accumulation as a subsea tie-back to the Tern platform, RPS 
Energy has reclassified 2011 year-end Contingent Resources to Proved, Probable 
and Possible reserves.

Kirkleatham and Sheryl

In April of 2011, development of the Kirkleatham field in northeast England, 
in which Sterling holds a 47 percent interest, was completed. First gas 
production was achieved on April 19, 2011. Since then the well has produced 
increasing amounts of water and has subsequently been shut-in. Previously 
considered Reserves in the field have been reclassified as Contingent 
Resources. In November 2012, the P1220 licence containing the Sheryl Oil 
discovery was relinquished and Proved and Probable and Proved, Probable and 
Possible Reserves have been removed from the Company's asset base.

Resources

The following details those events which have impacted the determination of 
the Company's 2012 year-end Resources:

On January 12, 2012 the Company announced that it had been successful in the 
final portion of the UK 26th Offshore Licensing Round awards, and was being 
awarded five additional blocks covered by three licences:
    --  The first licence (Sterling 100 percent - Operator) contains
        portions of Blocks 43/15a and 43/20a and the main exploration
        play is an Intra-Carboniferous structure which is partially
        covered by 3D seismic. The prospect lies just to the northeast
        of the Cavendish gas field and the Keplar gas discovery. Target
        formations are the Carboniferous Westphalian and Namurian
        formations which are present at Cavendish.
    --  The second licence (Sterling 100 percent - Operator) contains
        portions of Blocks 49/18b and 49/19b which holds an undeveloped
        gas discovery and an additional prospect and further leads with
        the target horizon being the Rotliegend Leman sandstone. The
        discovery lies to the north of the Indefatigable field and the
        other prospect and leads are to the north of the Brigantine
        complex. The Leman sandstone is of high quality and the old
        discovery well (drilled in 1995) tested in excess of 40 MMscfd.
    --  Sterling had also been successful in its application for a
        licence in the Central North Sea, covering Block 16/3d which
        contains part of the Cairngorm discovery. This application was
        originally made by Stratic Energy Corporation (now Enquest PLC)
        and Sterling on a 50 / 50 basis.  Subsequently (May 2012),
        Sterling's 50 percent interest in the licence was swapped for
        Enquest's 10 percent  interest in the F and L Quad blocks in
        the Netherlands

On February 7, 2012 the Company announced completion and preliminary results 
of the F17-09 well in Block F17a of the Dutch North Sea. After reaching a 
depth of 2,200 metres, the well encountered a 10 metre gross oil interval (6 
metre net oil interval), through interbedded sands with porosities averaging 
24 percent.

On March 5, 2012 the Company announced that its wholly-owned subsidiary in the 
Netherlands had been awarded a 30 percent interest in the exploration licences 
E03 and F01 in the Dutch North Sea jointly with Wintershall, who is operator 
with 30 percent and EBN holding the remaining 40 percent.

On March 22, 2012 the Company announced that its wholly owned subsidiary in 
Romania had obtained approval from the National Agency for Mineral Resources 
("NAMR") for a 40 percent interest in the 1,000 square kilometre Romanian 
Black Sea concession Block 27 (Muridava). The shallow water block, adjacent to 
Sterling's Pelican Block, contains multiple exploration plays, has existing 2D 
seismic coverage and contains an existing hydrocarbon discovery, Olimpiyskaya, 
which was drilled in 2001. This well has limited historical data. The 
Concession Agreement has an initial three-year exploration period. Block 27 
was one of a number of 10th Round offshore concessions awarded in June 2010 
and was ratified by the government in October 2011.

On July 13, 2012 the Company announced that its wholly-owned subsidiary in 
Romania had obtained approval from NAMR for an interest in the 1,000 square 
kilometre Romanian Black Sea concession Block 25 (Luceafarul). The Company's 
subsidiary in Romania will obtain a 50 percent interest and will be 
operator. The current concession holder Petro Ventures Europe BV will then 
hold the remaining 50 percent interest. This shallow water block west of and 
adjacent to Sterling's Midia Block, contains an existing gas discovery and 
multiple exploration plays, has existing 2D seismic coverage and has been 
assessed by independent reserves evaluator RPS Energy at the time of 
acquisition. The Concession Agreement has an initial three-year exploration 
period. Seismic work is currently progressing through the permitting process. 
Block 25 was one of a number of 10th Round offshore concessions awarded in 
June 2010 and subsequently ratified by the government in October 2011.

On October 19, 2012 the Company announced that it had signed a sale and 
purchase agreement with ExxonMobil Exploration and Production Romania 
("EMEPR") and OMV Petrom for the sale of its 65 percent interest in a portion 
of the Block 15 Midia in the Romanian Black Sea (the "Sale Portion").

The Sale Portion is on the southeastern margin of the block, in deeper waters 
and covers 125,000 gross acres, or 11 percent of the total area of the Midia 
and Pelican Concession. It contains the newly-determined Anca and Maria 
prospects and is adjacent to EMEPR's and OMV Petrom's deep water Neptun block 
containing the Domino-1 gas discovery well some 35 kilometres to the southeast.

On November 7, 2012 the Company announced the results of the exploration well 
on the Ioana prospect in Block 15 Midia in the Romanian Black Sea. The well 
was drilled to a total depth of 1,950 metres measured depth ("MD"), 1,513 
metres true vertical depth subsea ("TVDSS"). Gas shows from drilling mud gas 
measurements were experienced from a depth of 500 MD down to total depth of 
1,950 metres MD.

On December 14, 2012 the Company announced a gas discovery following the 
drilling of the Eugenia-1 well drilled in the Black Sea offshore Romania. The 
well reached a total depth of 2,276 metres (2,248 metres subsea). The 
preliminary log analysis indicates a total of 22 metres of gas-bearing Late 
Cretaceous sandstones, mainly within two intervals. Average porosity ranges 
from 10 to 20 percent and average gas saturations range from 55 to 62 
percent. The sandstone units are located within the interval 1,938 to 2,038 
metres MD. Formation pressure data and recovered gas samples from open-hole 
logging tools confirm moveable gas. Further detailed analysis of logs, 
pressure data and samples is ongoing. In addition to these Late Cretaceous 
sandstones, a further 20 metre zone of interest is evident within an Eocene 
limestone section from 1,900 to 1,938 metres. The interval was drilled with 
gas shows but attempts to collect pressure data were unsuccessful although 
this is not an uncommon occurrence in carbonates where matrix porosity is 
limited. Log analysis will be undertaken to determine if the Eocene limestone 
could be gas bearing and producible as was the case in the adjacent 
Olimpiyskaya well. The well also encountered 100 metres of good quality 
sandstones in a shallower objective in the Oligocene formation. Although 
drilled at a downdip location to enable drilling of the deeper Eocene and Late 
Cretaceous main objectives, the interval remains an interesting prospect updip 
of the current well.

The Company's hydrocarbon reserves and resources were independently evaluated 
by RPS Energy effective December 31, 2012 in accordance with the Canadian Oil 
and Gas Evaluation Handbook ("COGEH") reserves definitions and evaluation 
practices and procedures, as specified by NI 51-101. There is no certainty 
that it will be commercially viable to produce any portion of the Reserves. 
The evaluation uses the RPS Energy forecast prices and costs as at December 
31, 2012. Complete details regarding Sterling's reserves and resources for 
the year ended December 31, 2012 and in a format specified by NI 51-101 can be 
found on SEDAR at www.sedar.com or on the Company's website 
www.sterling-resources.com

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.

For further information: visitwww.sterling-resources.com or contact:

Mike Azancot, President and Chief Executive Officer, Phone:  44-20-3008-8488, 
Mobile: 44-7740-432883,mike.azancot@sterling-resources.com

David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile:  
44-7771-740804,david.blewden@sterling-resources.com.

George Kesteven, Manager, Corporate and Investor Relations, Phone: (403)  
215-9265, Mobile: (403) 519-3912,george.kesteven@sterling-resources.com

SOURCE: Sterling Resources Ltd.

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CO: Sterling Resources Ltd.
ST: Alberta
NI: OIL FIELD 

-0- Mar/26/2013 21:00 GMT


 
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