Sterling reports that the Doina Sister well reached the current total depth of 1,275 meters on December 30, 2007. The top of the main Doina reservoir was encountered at 1,139-meters, approximately 8 meters deep to prognosis.

A 12-meter core was cut in the reservoir section before drilling to total depth and commencing logging operations. Good indications of gas were recorded during drilling of the Doina main interval. Initial results from the first log indicate a high quality 21.5 meter net reservoir section between 1,139 - 1,167 meters with average porosity of 26%. Further gas indications are noted down to 1,200 meters and this lower section is being evaluated by the ongoing logging program.

Based on the results to date, the decision to test has been made and test results are expected by mid January. The Doina Sister prospect is an analogue to the existing Doina gas discovery which tested gas at restricted rates of 17 MMscf/d. The established Doina gas trend forms a small part of the offshore Midia Block XV which together with the Pelican Block XIII cover approximately 1.1-million acres and contain several other mapped structures.

Sterling obtained 100% of the offshore blocks in late 2006 and subsequently reached agreement with three companies to cover its costs for drilling and testing the Doina Sister well plus a significant portion of a second well. Sterling retains a 65% working interest in the Blocks. As previously announced, and given future production from within the Doina trend, Gemini Oil and Gas Fund II, L.P. will be entitled to payments equal to a share of gross revenues from such production.

Stewart Gibson, CEO, said "The results from the Doina Sister well support Sterling's long-term belief in the Midia and Pelican Blocks. It is particularly pleasing, since taking over as operator a year ago, to be able to progress activity in a manner commensurate with the potential prospectivity of the area."

Tags: Sterling Resources