The Company was informed on 30 November 2006 by AMVESCAP PLC (“AMVESCAP”) that, following the purchase of 1,964,136 ordinary shares of 1p each (“Ordinary Shares”), INVESCO Perpetual UK Investment Series (UK ICVC), are the beneficial owner of 266,984,458 Ordinary Shares representing 19.03 per cent. of the issued share capital of the Company of 1,402,950,558 Ordinary Shares.

The Company has been informed by AMVESCAP PLC ("AMVESCAP") that AMVESCAP and subsidiary companies, on behalf of discretionary clients, are interested in 394,941,967 Ordinary Shares of 1p each, representing 28.15 per cent. of the issued share capital of the Company.

The Company was informed on 31 July 2006 by Capital Group Companies Inc. that as at the close of business on 28 July 2006 they had an interest in 46,622,894 ordinary shares of 1p each in the Company ("Ordinary Shares") representing approximately 3.32 per cent. of the issued share capital of the Company.

At today’s Annual General Meeting, Mr Richard O’Toole, Chairman of Sterling, made the following statement: “2005 was another successful year for Sterling. Financial and operating performance improved. Turnover was up by 19% at £13.6 million. Pre-tax profits rose 20% to a record £5.0 million and cash inflow (before one-off closure costs and working capital movements) increased 13% to £8.8 million. We invested a further $65 million in the Chinguetti development and expect to have invested a further $50 million during this year, a substantial investment for Sterling.

Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration and production company, today announces that crude oil production has begun from the Chinguetti oilfield, in PSC B offshore Mauritania. This has been achieved in line with the production schedule issued by Sterling and its partners.