Sterling (symbol: SEY), an AIM-listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, provides a summarised operations update:

• Sterling has separately announced today that it has entered into a Production Sharing Contract (“PSC”) with the Kurdistan Regional Government of Iraq (“KRG”) for the highly prospective Sangaw North exploration block (“Block”)
  

• An exploration well is due to commence on the 5-20 million bbls Admiral Prospect offshore Gabon in early December in which Sterling has a c.28% interest. Sterling is carried for its costs on approximately two thirds of its interest 
  
  

• Key decisions regarding additional data and possible early drilling on a significant prospect are anticipated soon on the offshore Madagascar licences (Sterling 30%) 
  
  

• Third quarter net group production averaged c.6,100 boepd, an increase of 25% over the first half 
  
  

• Hedges have been implemented for 1,000 bpd of oil for 2008/9 at an average of  $74.30/bbl and for a total of 3.5 bcf of gas until July 2009 at an average price of c.$7.75/mmbtu 
  
  

• The USA operations have continued their successful drilling programme with 30 wells in 2007 and an 80% success rate. Three wells are currently drilling 
  
  

• A second horizontal Austin Chalk well has now commenced production sales at approximately 1 mmcfed net. Testing equipment has just arrived on the Thunder Stud location for a six week programme  
  
  

• Phase 2B development work on Chinguetti field remains on track to commence in q1 2008 with 2 development wells and 3 workovers expected. At least one exploration well and one appraisal well are also expected in the area where Sterling has a royalty interest.
   

Enquiries

Sterling Energy Plc (0207 405 4133)         
Harry Wilson
Graeme Thomson

Evolution Securities (020 7071 4300)
Rob Collins
Tim Redfern

Citigate Dewe Rogerson (020 7638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: Kate Delahunty