Sterling Energy plc has won new exploration acreage in the High Island area of the Gulf of Mexico, offshore Texas.

The new lease, High Island A94, is located approximately 75 miles south east of Houston, Texas, in less than 100 ft of water. It lies immediately south of Sterling’s High Island A68/A83 field.

Sterling Operations and Technical Director Nigel Quinton said: “This new acreage is a good example of our strategy of adding value to our producing assets. By looking for additional potential in and around the High Island A68 field, we identified a large exploration prospect below and offset from our existing production. The award of this acreage adds significantly to the potential reserves accessible through our existing facilities.”

This is one of the few areas of shallow water in the Gulf of Mexico where 3D seismic has yet to be acquired. The prospect is believed to be analogous to a gas-productive trend which lies a few miles to the north. The company will seek additional partners once a drilling location has been identified.

High Island A-94 covers 5,760 acres, and has a five-year initial term It was awarded 100% to Sterling in Gulf of Mexico Lease Sale 187, held on August 20, 2003 in New Orleans.

For further information contact:

Harry Wilson, Chief Executive
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
Stock symbol: SEY