AGM Statement

Sterling Energy PLC
24 July 2007


24 JULY 2007


                              STERLING ENERGY PLC
                           ('Sterling' or the 'Company')

                            2007 ANNUAL GENERAL MEETING


At today's Annual General Meeting, Mr Richard O'Toole, Chairman of Sterling,
made the following statement:



'Sterling has made a good start to 2007 with the $145 million purchase of the
issued share capital of NASDAQ listed Whittier Energy Corp. ('WEC'), completed
at the end of March, successful US drilling, an increase in its interests in its
Gabon licences and a new well commitment there in 2008.



Net sales in the first half of 2007, which includes WEC for 3 months only, are
estimated at 4,900 boepd, up 5% from the equivalent period in 2006. The USA
accounted for an average of 3,200 boepd in the first half of 2007 and is
currently producing at approximately 4,700 boepd, which is 10% higher than the
end March level.



I am pleased to report success with the drill bit in the US. Our operations
there have had a success rate of 17 in 20 wells drilled in calendar 2007. Of
these eleven are on production, three were non-commercial and six await
completion.  Our first horizontal Austin Chalk well (42.5% net revenue interest
'NRI') has recently been brought onstream at a net rate of over 2 mmcfged (330
boepd). We now have three rigs drilling, including a second Austin Chalk well
(19.6% NRI). Our 17,900 ft Thunder Stud well (15% working interest) has been
drilled and production casing has been set; testing is planned over a period of
approximately two months from mid-August.



We have recently increased our working interest in the West Texas Windham field
from 52% to 95% at a cost of $3.6 million. We are ready to take over as operator
and to conduct two workovers. We have also entered into an arrangement with
Viking Exploration to participate in their drilling programme. We will be
drilling our first five wells with them in South Texas shortly.



In Mauritania, Chinguetti field production averaged 18,300 bpd in the first
quarter and 15,400 in the second quarter of 2007. Recent production has been
12-14,000 due to remedial work needed on gas lift equipment. Phase 2-B
development work is expected to commence towards the end of the year or early in
2008, with 2-3 development wells and 2-3 workovers. Recently acquired 4-D
seismic date is being processed to assist in choosing optimal locations. Since
the end of 2006, the operator has revised its ultimate field 2P reserve
estimates to 62 million bbls compared with the 50 million used by Sterling for
its 2006 Annual Report.



In Gabon we have recently agreed to increase our interests through pre-emption
in both the Themis Marin and Iris Marin licences to 28.5% (previously 20.6%) and
50% (from 38.6%) respectively. A fourth quarter 2007 Themis exploration well is
to be drilled on the 13 million bbls Admiral prospect, for which Sterling will
pay 10.5% of the cost. A new well commitment has been entered into on Iris on a
much larger target in early/mid 2008. Rigs have been secured for both wells and
these targets could, if successful, add materially to Group reserves.



The recent 2006 Annual Report contains more details on other developments in
2007 but I would like to re-emphasise our commitment to developing a position in
Kurdistan, an emerging and highly prospective area, where discussions continue.



I am confident that the Group is well placed for success from its greatly
expanded drilling programme and the early results in the USA are highly
promising.'



As previously announced, Dr Richard Stabbins was appointed as Chairman at the
end of the Meeting as Mr O'Toole did not seek re-election after nearly five
years as Chairman. All Resolutions proposed at the Meeting were duly passed.






Enquiries

Sterling Energy ([phone])          Web site: www.sterlingenergyplc.com
Harry Wilson
Graeme Thomson

Citigate Dewe Rogerson ([phone])
Media enquiries: Martin Jackson
Analyst enquiries: Kate Delahunty

Evolution Securities (020 7071 4300)
Rob Collins








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