Stratic Energy Corporation announces that Sterling Resources Limited, as operator of the Breagh gas discovery in the UK Southern North Sea, has entered into a contract with AGR to drill an appraisal well on the discovery using the ENSCO 85 jack-up rig. Stratic will bear 20% of the cost of this well to earn a 10% working interest in the discovery and adjacent acreage.

The rig is currently being used to complete a well for another operator, after which it will drill one further well before moving on to the Breagh appraisal well, which is expected to be spudded in mid-September. Stratic’s interest in the Breagh discovery was acquired as part of its recent purchase of Grove Energy Limited, which was completed in April of this year.

Breagh was discovered with the drilling of well 42/13-2 in 1997 by Mobil and encountered net gas pay of approximately 68 ft within the Lower Carboniferous Scremerston Sandstone Formation. The well was cored and logged but, because of formation damage which occurred during the drilling and completion of the well, only tested at sub-commercial flow rates.

The forthcoming appraisal well will be designed with the principal objective of achieving a test flow rate representative of the undamaged formation, which will be key to determining the commercial viability of the discovery.

There is further upside potential to the east of the current discovery which is likely to be the subject of further drilling activity next year if the appraisal well planned for September is successful.