Sterling Resources announces award of pipelay contract at Breagh

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26 November, 2010

Sterling Resources Ltd. (TSX-V:SLG) (“Sterling” or the “Company”) is pleased to announce that the contract for the engineering, installation and pre-commissioning of the offshore pipeline and associated fibre optic cable for the Breagh development project in the UK North Sea has been awarded to Allseas Construction Contractors SA (“Allseas”) by RWE Dea UK, operator of the Breagh project.

Allseas will perform the required detailed design engineering and will lay the approximately 100 kilometers of 20 inch export line, 3 inch mono ethylene glycol line and fibre optic cable from the Breagh 'A' platform location to a beach valve station located on Coatham Sands, Teesside, UK. The Allseas pipelay vessel Lorelay will lay the main section of the pipeline with the Tog Mor laying the nearshore section.

The Breagh 'A' field is located in UKCS Block 42/13 of the southern North Sea in 62 meters water depth, approximately 100 kilometers to the east of Teesside. Gas will be exported via the 20 inch pipeline from the platform to the Teesside Gas Processing Plant. The contract for the construction of the 10 kilometer long onshore section of pipeline is expected to be awarded before the end of 2010.

“The awarding of this contract concludes another milestone in the development of the Breagh project,” stated John Rapach, Sterling‟s Chief Operating Officer. “We welcome Allseas to the project and look forward to working with them and RWE Dea as we advance towards first gas at Breagh in 2012,” added Mr. Rapach.


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