South Louisiana
Sterling’s largest operated fields in the region are Beaver Dam Creek in St. Helena Parish and Cut Off in Lafourche Parish. Both are characterized as mature fields and produce from 14,500 feet to 11,500 feet respectively. Sterling is the operator of both fields with 89% working interest in Beaver Dam Creek and 87% working interest in Cut Off. Other major producing fields in the region include Coffee Bay in Lafourche Parish, Duson in Lafayette Parish, Kings Bayou in Cameron Parish and Rayne in Acadia. These fields all produce from 12,000 feet to 14,000 feet with working interests ranging from 10% to 35%.
Sterling recently drilled proved locations in the Cut Off field and Kings Bayou field. In addition to this, it has also drilled multiple in-fill locations in each of these fields during the last two years. Sterling owns a 9.7% interest in a well which was completed late in the second quarter of 2005 in the Grater Duson Area which produced at the rate of approximately 20 Mmcfe per day for over a year from a secondary zone. This well is currently being re-completed by the operator in the zone that was the primary objective when it was drilled. Sterling recently participated in an offsetting well which logged 40 feet of pay having less then 1% interest in this well; however, it lends support to adjacent acreage in which the company owns a 55% working interest.
Sterling have developed an extensive 3-D seismic database for the region and has identified several additional drilling projects, including a two-well project in Calcasieu Parish, Louisiana with targets at 4,000 feet and at 7,500 feet; and a two-well project in Acadia Parish with multiple targets at the 10,800 foot range. The company has a 66% working interest in the Calcasieu Parish project and a 25% working interest in Acadia Parish and has recently completed processing data from a 48 square mile 3-D seismic shoot in Southwest Louisiana identifying multiple drilling prospects.
