Sterling Energy Slips on Kurdistan Update

The top of the drill pipe remaining in the well is at approximately 1,670 metres, some 220 metres below the bottom of the existing casing.

Recent operations indicate that the structural integrity of the drill pipe is improving with depth. The Company plans, based on the increasing rate of recovery, to continue retrieving drill pipe to reach the bottom hole assembly. However, if the rate of drill pipe recovery does not remain sufficiently high, the Company may proceed to abandon the existing wellbore at a depth in the open hole above the remaining drill pipe, sidetrack at this depth to a new well bore and re-drill the remaining section to the planned casing point.

These operations are challenging and the Company is unable to provide an estimate of the length of time that will be required to successfully complete them. Once they have been completed, the Company plans to run casing in the well. Sterling will make a further announcement at the appropriate time

Angus MacAskill, Sterling's Chief Executive said:

"The Company has made significant progress in removing gas from the well, managing the formation pressures, and retrieving damaged drill pipe. With the remaining drill pipe now in the open hole below the casing shoe, we plan to proceed using the two operational options available to reach the planned casing point."