Sterling provides drilling update

Sterling Energy, an independent oil and gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, has spudded the Iris Charlie Marin-1 (ICM-1) exploration well, in the Iris Marin PSC, offshore Gabon on 5th July 2008.

The company will use Hercules Offshore’s jack-up rig Hercules 156 to drill the well, which is located some 12 kilometres southwest of the Gamba field in 25 metres of water.

The company hopes that the well will target the Charlie Prospect, estimated to contain reserves of 20-40 mmbo in the Gamba Sandstone formation.

Graeme Thomson, chief executive of the company, said this is an exciting exploration well for Sterling, the Charlie Prospect has significant upside and in the event of success, a number of nearby prospects will be significantly enhanced.

We anticipate reaching target depth in late July and reporting to shareholders soon after, concluded Mr. Thomson.