Sterling Energy plc has been successful with its £38 million bid for Fusion Oil & Gas plc, creating a merged group that will have assets in the Gulf of Mexico, West Africa, & Asia, and a market capitalisation of around £90 million.

Shareholders in Fusion Oil & Gas plc should benefit more from future exploration success if they accept a near £40 million offer from Sterling Energy plc.

Sterling Energy plc announces it has agreed to acquire a 20.4% stake in Fusion Oil & Gas. Sterling is acquiring the stake from Fusion’s largest single shareholder, AIM-quoted Westmount Energy Limited.

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.

Final results published today by Sterling Energy plc for the year to December 31, 2002 reflect a transformation for shareholders following the reverse acquisition with AIM-quoted LEPCO plc last October.

Sterling Energy is pleased to announce the completion of another deal expected to add significantly to its revenues from gas production in the Gulf of Mexico.