Sterling Resources, Shell UK Farm Out 40 Percent Interest of License in Central North Sea

Sterling Resources Ltd. has signed agreement with Shell U.K. Limited to farm out a 40 percent participating interest in UK License P1792 covering Blocks 21/30f and 22/26c in the Central North Sea containing the Beverley prospect and the Belinda and Evelyn discoveries.

Sterling was awarded these blocks in the UK 26th Offshore Licensing Round. Under the agreement, Shell will cover Sterling’s 20 percent remaining participating interest share of 3D seismic costs across the two blocks and Sterling’s share of the costs of an exploration well on the Beverley prospect. Sterling will continue as Operator for the exploration well. Subject to the approval of the Department of Energy and Climate Change, the joint venture interests will be Sterling Resources (UK) Ltd. 20 percent, Shell U.K. Limited 40 percent, and Valiant Petroleum Plc 40 percent.

“The Beverley prospect is associated with possibly the last undrilled salt diapir in the Central North Sea and we believe it has significant potential given the drilling results of other analogous salt diapir structures in the Gannet area. Success could add to the existing Evelyn and Belinda discoveries to create a possible producing hub. The farm out agreement with Shell brings in a partner with regional knowledge while providing Sterling with a carry for the costs of the imminent exploration activities on the Beverley prospect,” said David Findlater, Sterling’s Vice President UK Exploration.