News from CNW Group

Sterling provides operational update

Thursday, October 02, 2003

CALGARY, Oct. 2 /CNW/ - Sterling Resources is pleased to provide an update on its current operations.

Planning approval has been received for its next two onshore UK well locations, both of which are on prospects with previous indications of hydrocarbons, production testing of the recent discovery at Avington commenced October 1, and the infill seismic acquisition program in the north east portion of Craiova block, onshore Romania, has been completed.

The exploration well at Waddock Cross, within licence PL 090 in the Wessex Basin, received planning approval in September. Site construction is planned for October and drilling operations are expected to start in November. The Waddock Cross well is targeting the Bridport reservoir, which tested oil in the original well drilled by British Gas in 1982. Following re-evaluation of petrophysics, well test data and the prospect structure, utilization of horizontal well techniques for enhanced production and recovery is considered feasible and will be considered given encouraging results from this well, which will be drilled just to the south and east of the original well. Waddock Cross is the first of the Wessex High wells to be drilled, evaluating the Bridport and Sherwood reservoirs as they trend westwards from the Wytch Farm and Wareham fields. Sterling retains an 18.75% working interest in PL 090 following a farm out which covers Sterling's share of the well cost.

In the Cleveland Basin, the planning application for the Westerdale natural gas exploration well was approved at a meeting of the Planning Committee in September. Sterling agreed to conditions concerning traffic during operations and timing of construction and drilling operations to be in the October through March time period. Westerdale is one of two planned wells in PEDL 068, which Sterling operates with an 80% working interest. The well is designed to test the structural closure some 50 meters updip from the original well on the structure, which tested natural gas.

In Romania, an infill seismic acquisition program was completed in the northeast part of the Craiova Block on September 30. The 110 km program was chosen to evaluate a large positive geochemical anomaly and provide modern data quality along the western edge of the Bailesti depression. This is one of two focus areas within the large concession and is close to the large producing fields Bradesti and Malu Mare. Data quality appears excellent and processing will be completed during October. In the southern focus area, a review of prospectivity using existing seismic data and the results of a geochemical survey has also been completed. The results of the activity on the two focus areas should allow well location selection.

Sterling Resources Ltd. is an international oil and gas company headquartered in Calgary, Alberta. The common shares of the Corporation are listed on the TSX Venture Exchange under the symbol "SLG".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

/For further information: Robert G. Welty, CEO, Phone: 403-237-9256, Fax: 403-215-9279; Stewart G. Gibson, President, Aberdeen, Scotland, Phone: 44-13398-84285, Fax: 44-13398-84092; Information is also available on Sterling's website at www.sterling-resources.com/