Chinguetti Drilling Update

Sterling Energy PLC
02 June 2005



2 JUNE 2005

                              STERLING ENERGY PLC

                           CHINGUETTI DRILLING UPDATE


Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration
and production company, note that the following announcement was made earlier
today by Hardman Resources  Ltd:


Hardman Resources Ltd ('Hardman') announces that the drilling rig 'Stena Tay'
has completed the drilling of the wells required for the first phase of the
Chinguetti development project, offshore Mauritania. This drilling program
included 5 new oil producers, 5 water injectors to maintain reservoir pressure,
and 1 gas injection well drilled on the Banda discovery for disposal of the
Chinguetti associated gas. The Chinguetti early development well drilled in late
2003 will also be tied into the production system, resulting in the planned 6
producing wells being on stream at the end of the first phase of development.
During the drilling of the Banda gas injection well a number of cores were cut
and fluid samples taken, to aid in the continuing evaluation of this discovery.
The 'West Navigator' drilling rig remains in the Chinguetti field and is
continuing work on the installation of well completion equipment. As of 31 May
2005 sand completion equipment had been installed on 7 of the 10 new wells, and
this work will be followed by the installation of the production tubing and
subsea trees before connecting the wells to the Berge Helene Floating Production
Storage and Offtake (FPSO) Vessel for production.



Drilling results on Chinguetti were positive, meeting or exceeding expectations.
The completion of the drilling phase removes one significant element of forward
project risk and confirms that the volume of oil-in-place is at least as
expected. On the assumption that early well performance remains in line with
forecasts, Hardman anticipates that this will result in an increase in proven
reserves when it carries out its initial reserves redetermination. The project
is now over 71% complete and the target date for first oil from the Chinguetti
field remains Quarter 1, 2006.



The 'Stena Tay' is preparing to move to the Canary Islands for upgrade works
before returning in July to commence the 2005/6 exploration and appraisal
program. The forward drilling schedule and selection of the exploration and
appraisal targets are the subject of a number of key joint venture meetings to
be held from mid-June.



SCOTT SPENCER, DIRECTOR



Note: In accordance with Australian Stock Exchange Limited listing requirements,
the geological information supplied in this report has been based on information
provided by geologists who have had in excess of five years experience in their
field of activity.



Harry Wilson, Chief Executive of Sterling Energy Plc, said:

'We are extremely pleased that the Chinguetti drilling results met our
expectations, thereby confirming our belief in the project.  The next 12 months
will be very exciting for Sterling as we remain on track for first oil from
Chinguetti in first quarter 2006.'




Enquiries



Sterling Energy (01582 462 121)           Web site: www.sterlingenergyplc.com

Harry Wilson
Graeme Thomson



Citigate Dewe Rogerson (020 7638 9571)

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