RWE Dea U.K. commenced development drilling at the Breagh field. First gas from Breagh is expected in second half 2012.

The Ensco 70 rig has been deployed to start the Breagh development drilling program. Previously drilled wells 42/13-3 and 42/13-5Z, suspended for future use as early development wells, will be re-entered and sidetracked to re-drill the reservoir interval. Including the recompletion of these two wells, up to eight development wells are expected to be drilled, completed and put on production over the next two years.

RWE Dea holds 70% interest in the Breagh gas field as operator and Sterling Resources U.K. holds 30%.

The Breagh field is on the U.K. continental shelf blocks 42/12a and 42/13a of the southern North Sea in a water depth of 62 m (203 ft), approximately 100 km east of Teesside.

The gas will be exported via a 20 in pipeline from the Breagh Alpha platform to Coatham Sands, Redcar, on the U.K. mainland, and a 10 km onshore pipeline for processing at the Teesside Gas Processing plant at Seal Sands. After processing at the plant, the gas will enter the U.K. National Transmission System.