Chinguetti Operations Update

Sterling Energy PLC
15 May 2006


15 MAY 2006


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

                      CHINGUETTI OIL FIELD PRODUCTION UPDATE


Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration
and production company, note the announcement made earlier today by Hardman
Resources Limited, reproduced below.

Mr Harry Wilson, Chief Executive of Sterling, commenting on the Hardman
announcement said:

'Some initial fluctuations in production are always to be expected as reservoir
management is optimised.  The operational and technical issues are being
addressed.

'The reserve estimates are of course unaffected and given the strength of the
oil price, Sterling's realised cash flow continues in line with the Board's
projections.'


The Hardman announcement:

Hardman Resources Limited ('Hardman') provides the following update in respect
of the Woodside operated Chinguetti oil field, offshore Mauritania.

As Hardman has previously announced, production from the field averaged 66 mbopd
for the month of March and 53 mbopd for April 2006. Production for the period
1May to 10 May 2006 has averaged 45 mbopd.

The Operator has reported that the principal reasons for the lower production
are the minimal contribution from the two production wells in the northern part
of the field and gas and water management issues. The failure last week of a gas
compressor onboard the FPSO, Berge Helene, will further delay the commissioning
of gas re-injection to the Banda field and therefore resolution of facilities
gas handling issues, as well as the availability of gas lift to support
production.

Production from Chinguetti is not expected to increase significantly from the
present level until well intervention and/or additional drilling takes place.
Such remedial actions are currently anticipated by end of the third quarter or
beginning of the fourth quarter 2006. Optimally configured wells or sidetracks
should add potential of at least 10 mbopd per well in the southern sector of the
field and 5-10 mbopd in the northern sector. Plans for even earlier
intervention, including sourcing additional completion equipment, are currently
being evaluated though would have the effect of delaying the commencement of the
2006 Mauritanian exploration campaign.

The current production issues do not impact on estimates of oil in place nor
likely ultimate recoverable reserves, though additional investment may be
required to access those reserves.

Anticipated operating cashflows from Mauritania will remain robust given high
current oil price realisations despite the lower production from Chinguetti.

Hardman will update the market of any material change as it is advised by the
Operator.

All production figures reported above are gross.



Enquiries

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

Citigate Dewe Rogerson (020 7638 9571)
Media enquiries: Martin Jackson / George Cazenove
Analyst enquiries: Nina Soon

Evolution Securities (020 7071 4300)
Rob Collins / Henry Turcan




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