Sterling Resources Ltd. report the execution of an agreement with Enquest PLC under the terms of which Sterling will acquire Enquest's 10 percent interest in its F-Quad and L-Quad licences in the Dutch North Sea, and Enquest will acquire Sterling's 50 percent interest in the Cairngorm licence (Block 16/3d) in the UK North Sea. The agreement is subject to regulatory and partner approval.

Following closing of the agreement, Sterling Resources Nederlands BV, a wholly owned subsidiary of Sterling Resources, will now as operator hold a 35 percent interest in the shallow geological horizons of blocks F14, F16, F17a, F18 and L01b. The other partners are Petro Ventures Netherlands B.V. with a 25 percent interest and EBN with a 40 percent interest. The five blocks cover 1,550 square km located approximately 80 km offshore in a water depth of 45 metres. The shallow geological horizons of these blocks contain four oil discoveries, with several wells which tested oil at flow rates of up to 4,800 barrels per day with API gravities in excess of 30 degrees.

Tags: Sterling Resources