Mishap for Sterling Energy

23rd Nov 2010 15:33

Shares in Sterling Energy have lost nearly one-eighth of their value after the oil and gas explorer reported a mishap at its well in Kurdistan in Iraq. The well is on the Sterling operated Sangaw North block, where Sterling has a 53.33% working interest. The Sangaw North-1 exploration well was drilled to a depth of 3,396 metres. The well encountered pressure from gas and Sterling was trying to remove the gas in order to eliminate pressure when the drill pipe parted. The drill pipe has to be retrieved in order to run casing prior to drilling Jurassic reservoir targets. How long that will take is difficult to assess. The gas encountered does not mean that there is a commercial reservoir of gas.