AGM Statement

Sterling Energy PLC
29 June 2005


29 JUNE 2005

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


                          2005 annual general meeting

                            a TRANSFORMATIONAL year



At today's Annual General Meeting, Mr Harry Wilson, Chief Executive of Sterling,
made the following statement:



'2004 was a successful and eventful year for Sterling and 2005 has begun in the
same fashion.



A strong performance in 2004 on a broad range of financial and operational
fronts has transformed the company and its prospects.  Notable achievements
during the year were a 144% increase in operating cashflow to £8.1 million, a
doubling of production to 10.2 million cubic feet gas per day ('mmcfge/d') and a
450% increase in net 2P reserves to 21.6 million barrels oil equivalent ('mmboe
').  The successful £97 million fund raising and acquisition of an equivalent
c.8% economic interest in the Chinguetti development, offshore Mauritania,
presages a step change for Sterling when the field comes on production in Q1
2006.  This deal also positions Sterling as an innovative participant within one
of the world's most prospective hydrocarbon regions and cements a strong
relationship with the Mauritanian Government.



In recent months we have brought more focus to our African operations through
the disposal of non-core assets such as those in the Philippines and the farmout
of assets such as Dome Flore in the AGC to accelerate development and reduce
risk.



We are participating in an active drilling programme in Africa, much of it on a
carried basis and our US programme aims to double production in the Gulf of
Mexico by the year end.  Earlier today we announced the successful recompletion
of a well in our Eugene Island 268 license and the completion of a well in our
Mustang Island license, both in the Gulf of Mexico.  The first of these, on
Eugene Island, will shortly be on production and is expected to lift our Gulf of
Mexico production by over 15%.



The substantial boost in our cash flow from our share of the expected 75,000
boepd of production from the Chinguetti development in 2006 and the continued
strong commodity prices, will allow the Company to access many new opportunities
for growth.  I do not expect any let up in the pace of our activities over the
next 12 months.'



All resolutions proposed at the AGM were duly passed.





Enquiries

Sterling Energy (01582 462 121)          Web site: www.sterlingenergyplc.com
Harry Wilson
Graeme Thomson

Citigate Dewe Rogerson (020 7638 9571)
Martin Jackson
Nina Soon

Evolution Securities (020 7071 4300)
Rob Collins
Henry Turcan




                      This information is provided by RNS
            The company news service from the London Stock Exchange