Sterling Energy (AIM: SEY), an independent oil & gas exploration and production company with interests in North America, Africa and the Middle East, notes the announcement made on 07 May 2008 by Roc Oil Company Limited (“ROC”) in respect of the Banda NW ST-1 well, PSC Area A and PSC Area B, offshore Mauritania (see below). 

Sterling has a royalty interest in PSC Area A and PSC Area B, plus an economic interest in the Chinguetti Field, PSC Area B, through a funding agreement with the State oil company Societe Mauritanienne des Hydrocarbures, who own a 12% interest in the field.  At present oil prices, the amount received by Sterling under the royalty is around $15 per bbl sold. The royalty agreement also provides for payments to Sterling for gas produced on an oil equivalence basis.

The ROC Oil announcement:

“Roc Oil (Mauritania) Company, a wholly owned subsidiary of ROC, advises that as at midnight (local time) on 3 May 2008, the Banda NW ST-1 sidetrack well had been suspended.

The results of the wireline logging, Modular Dynamic Tester (MDT) pressure testing and sampling indicate that Banda NW ST-1 intersected an 85 metre gross gas column, with 15 metres (18%) net gas pay and a 15 metre gross oil column, with 10 metres net oil pay (67%).  The fluid contacts were as expected and the well is interpreted to be in communication with the original Banda-1 discovery well drilled in 2002, approximately 2 kilometres to the east.  The Banda Field is in approximately 300 metres of water and spans PSC Area A and PSC Area B.

The Atwood “Hunter” will commence with the planned well intervention work on the Chinguetti Field, once it has completed the move from Banda NW ST-1.”

For further information contact:

Sterling Energy Plc (+44 20 7405 4133) 
Graeme Thomson, CEO
Harry Wilson, Deputy Chairman

Evolution Securities (+44 20 7071 4300)
Rob Collins, Director

Citigate Dewe Rogerson (+44 207 628 9571)
Media enquiries: Martin Jackson
Analyst enquiries: George Cazenove