Oil exploration and production group Sterling Energy is entering an exciting new phase with the start this summer of an exploration and appraisal drilling programme offshore West Africa, Chairman Richard O’Toole said today.

“It promises to be an exciting period for us all”, Mr O’Toole told shareholders at the company’s Annual General Meeting in London.

Sterling will participate in up to 20 wells offshore West Africa, at virtually no expense to the company thanks to “carried interest” arrangements which leave other partners to pay most of the cost.

The company acquired the West African acreage as a result of its successful £40 million takeover of Fusion Oil & Gas late last year. Since then, offshore Mauritania, the Chinguetti discovery has been confirmed as commercial and the potentially larger Tiof field has been discovered.

Mr O’Toole added: “The early successes offshore Mauritania provide clear examples of the potential that may exist elsewhere within our West African portfolio, and we are looking forward to the drilling programme.”

Drilling on the first new Mauritania well is expected to begin in August.

The company is also planning an extensive Gulf of Mexico development drilling programme of at least six wells, which aims to more than double production over the next year. The first of these wells, on High Island A68, is due to spud next week.

For further information contact:

Harry Wilson, Chief Executive
Sterling Energy plc: 01582 462 121
Graeme Thomson, Finance Director
Sterling Energy plc: 01582 462 121
Allan Piper, First City Financial Public Relations: 020 7436 7486
Rob Collins, Evolution Beeson Gregory: 020 7071 4311

www.sterlingenergyplc.com
Ticker Symbol: SEY