December 16, 2004: Following its recent successful £97 million fund raising, Sterling Energy plc is pleased to announce the appointment of two new executive directors to strengthen the board further in line with its continuing growth.

Sterling Energy plc is delighted to announce it has successfully raised approximately £97 million principally for investment in the development of the Chinquetti Field, offshore Mauritania in West Africa.

Sterling Energy plc has been awarded a 100 per cent interest in two new exploration licenses offshore northwest Madagascar, covering some 34,000 km2 of undrilled basin. In both blocks the initial commitment is to conduct geological studies with seismic acquisition expected to follow in 2005 at Sterling's option.

Sterling Energy plc (“Sterling”) is pleased to announce that Woodside Energy Ltd (“Woodside”) has today announced the start of its 2004 offshore Mauritania drilling campaign in West Africa.

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.

Further to the announcement made by the Company on 30th January 2004, Sterling is pleased to announce that it has concluded the acquisition of five producing gas fields from Osprey Petroleum Partners, LP for $39.5 million in cash. The fields are located in shallow water, offshore Texas, in the Gulf of Mexico, and include the associated gas gathering system and onshore facilities.