Sterling drilling at Sangaw disappoints

20th Sep '10 by Fangorn

9 comments 5120 reads

http://uk.reuters.com/article/idUKSGE68J0AA20100920?rpc=401&feedType=RSS&feedName=smallCapsNews&rpc=401

Oil and gas explorer Sterling Energy (SEY.L) said on Monday initial testing of shallower zones at its key well in Kurdistan proved disappointing, sending its shares down to their lowest in nearly a year and a half.

Company says it found water flowing at 750 barrels per day at the Sangaw North 1 exploration well, after it initially encountered gas flowing at a rate of 1 million standard cubic feet per day (mmscfd).

Anyone buying the falling knife?

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About the Author

Fangorn

Premium Member

9 comments

djpreston

27th Apr '11

Well, somethign has woken up SEY. Big spike of 13% ona surge (all things relative) in volumes in the last 40 mins.

No posiiton just noticed it.

Fangorn

27th Apr '11

Just checked...up 25%. Somewhat suspicious if you ask me. Not heard anything myself. Nor seen anything on the wires.

No position either. More's the pity.

djpreston

27th Apr '11

Just checked...up 25%. Somewhat suspicious if you ask me. Not heard anything myself. Nor seen anything on the wires.

No position either. More's the pity.

Well, with it up 40% now, I think its safe to say that someone somewhere thinks there's been a leak of news. That and its now a self fullfilling move as PI's pile in on a "hot" stock.

Guess we await the RNS as surely there will be one requested.

REO100

27th Apr '11

The thought of wires crossed and it relates to Sterling Resources - just dreaming ;-)

Reo

djpreston

27th Apr '11

And here's the IMS (issued a bit early probably due to the rise).

Price now falling back rapidly (okay, to 25% up).

Angus MacAskill, Sterling's Chief Executive, said:

"Drilling operations at the Sangaw North-1 well continue to make progress; the parted drill pipe incident that took place during the fourth quarter of 2010 and subsequent fishing and side-track operations took some 115 additional days. However, these latest challenges have been overcome and we are now drilling ahead to evaluate the prospectivity in the Jurassic and Triassic formations."

Kurdistan

The drilling operations at the Sangaw North-1 exploration well continued to present operational challenges during the first quarter of 2011. The well control and parted drill pipe incidents were successfully overcome with the drilling of a side track well bore to a depth of approximately 3,360m and the subsequent running and cementing of a 7" liner.

Sangaw North-1 exploration well is drilling ahead at 3,760m. The original well design had a planned total depth of 3,660m with an option to continue drilling to a depth of 4,160m. The joint venture partnership has elected to continue drilling to the deeper depth to explore the prospective targets within deeper Jurassic and Triassic formations. For the Sangaw North-1 well, Sterling's share of drilling costs are carried by Addax, with Sterling paying only its participating interest share (53.33%) of testing costs.

Drilling and wireline logging operations are expected to be concluded within one month. Evaluation of the well data yet to be acquired will assist in the determination of intervals where flow testing operations may then be undertaken. Flow testing operations, if undertaken, are expected to take approximately 15 days per flow test.

The first sub-period of the exploration phase of the Production Sharing Contract ("PSC") for the Sangaw North Block has been extended by one year to November 2011, to allow for the completion of operations in the Sangaw North-1 well and the evaluation of the results of this well. The second, and final, sub-period of the exploration phase of the PSC has a duration of 2 years.

djpreston

27th Apr '11

Oh, nearly missed this buried away towards the end of the IMS - not the usual "Thanks" style either.

Director Resignation

Jonathan Cooper, Financial Director and Company Secretary, tendered his resignation on 19 April 2011. He is working his six month notice period during which time the Company will seek to appoint a successor.

tony9i9i9i

3rd May '11

Jumped again today, touched 62p back to 57p now, its a bit odd.

Fangorn

3rd May '11

It's certainly up and down like a tart's drawers......

Was tempted to buy again a couple of days ago......but bought Hoil instead.

ifield29

6th May '11

One day this one(SEY) will come right - but we could all die while waiting. I'm staying in there for the sake of my great grand children.

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Sterling drilling at Sangaw disappoints

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Fangorn

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