Sterling Energy Resources announces 37-mile pipeline project

KANSAS CITY, Kan., Oct. 28, 2002 — Sterling Energy Resources finalized a pipeline connection agreement with Williams Natural Gas.

The interstate pipeline connection, located adjacent to the Williams Natural Storage Gas Field in Northeast Kansas, will enable Sterling to begin construction of its new 14-mile pipeline extension. This new extension will connect a Williams interstate sales line to the 23-mile Vanguard gas gathering system acquired by Sterling in April of this year.

The company has also signed a preliminary agreement for the construction of the new 14-mile pipeline with Northern Pipeline Construction Company, a wholly owned subsidiary of Southwest Gas.

During the pipeline construction phase, to begin in November, Sterling will commence leasing and drilling activities for potential natural gas reserves in and around our 37-mile pipeline system located in the gas rich Forest City Basin.

In addition, Sterling anticipates re-completing as many as six deeper Mississippi Formation gas wells that were tested earlier this year. Sterling Energy Resources is an integrated exploration and production company with operations in Northern California, South Texas and Northeastern Kansas.

Source: Sterling Energy Resources

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