Drilling Campaign

Sterling Energy PLC
05 July 2004


Sterling Energy plc ('Sterling') is pleased to announce that Woodside Energy Ltd
('Woodside') has today announced the start of its 2004 offshore Mauritania
drilling campaign in West Africa.

Sterling owns a royalty interest over a 6% interest in PSC B and will hold a
royalty interest over a 3% interest in PSC A following a Declaration of
Commerciality in PSC A. This is as a result of the transaction between Fusion
Oil & Gas and Premier Oil, announced on 28 May 2003, and Sterling's subsequent
takeover of Fusion.

Joint Venture partners Premier Oil plc and Hardman Resources Limited have also
issued releases today.

Highlights of the programme are:
     
•    Three exploration wells in PSC B, Tevet, Capitaine, and Merou; Premier
     Oil's release today suggests that the latter two are potentially of similar 
     size to the Tiof discovery.

•    Two exploration wells in PSC A; Premier Oil's release suggests that one of 
     these is of similar size to Tiof, whereas the second is a higher risk, but 
     potentially significantly larger feature which extends into PSC B.

•    Up to four appraisal wells will be drilled on Tiof, one of which will
     include a production test.

•    11 development wells (including up to 6 producing wells) will be drilled as 
     part of the Phase 1 development of the  Chinguetti oil field commencing in 
     4Q 2004.

•    All of this programme will be carried out at zero cost to Sterling.

•    Sterling will be due a discovery bonus from Premier once each field greater 
     than 50 million barrels is declared commercial, of $2 million in PSC B and 
     $1 million in PSC A.

The Woodside release reads as follows:

Woodside approves major drilling campaign in Mauritania

Woodside Energy Ltd., a wholly-owned subsidiary of Woodside Petroleum Ltd., is
about to embark on its 2004 offshore Mauritania drilling campaign in West
Africa.

The campaign will involve the drilling of up to 21 exploration, appraisal and
development wells across offshore acreage containing the Chinguetti, Tiof and
Banda oil and gas discoveries.

The exploration and appraisal program will commence in August 2004 and continue
until the commencement of Chinguetti development drilling in the fourth quarter
of 2004.  The program will cover one commitment well, the Dorade prospect in PSC
Area C2, up to five exploration wells in PSC Areas A and B and up to four
appraisal wells on the Tiof discovery.

Work is continuing on finalising the prospect drilling list.  The exploration
wells to be drilled in PSC Areas A and B are expected to include the Tevet,
Capitaine and Merou prospects with additional wells yet to be confirmed.

The development drilling program on Chinguetti will commence in the fourth
quarter of 2004 and will involve up to six oil production wells, four water
injection wells and one gas injection well in the Phase 1 Chinguetti Oil
Development (PSC B).

'The exploration wells will target Miocene objectives, similar to those of the
successful Chinguetti, Tiof and Banda discoveries and seek to identify other
potential production opportunities,' said Woodside Chief Operating Officer,
Keith Spence.

'The development and appraisal drilling is designed to assist the timely
delivery of our recently approved US$600 million Phase 1 Chinguetti Oil
Development and to further appraise last year's exciting Tiof oil discovery.'

The campaign will utilise two deep-water drilling rigs, the 'Stena Tay' and '
West Navigator', that will work in tandem and operate in water depths ranging
from 300 metres to 1,700 metres.  The rigs are expected to continue in
Mauritania on development, exploration and appraisal drilling into the second
half of 2005.

Equity interests in Woodside's operated permits in Mauritania are as follows:


Company                          PSC A               PSCB               PSC C2
Woodside Energy (operator)      53.846%             53.846%              48.0%
Hardman                          24.3%               21.6%               28.8%
BG                              13.084%             11.63%
Premier                                              9.231%
Fusion Mauritania A              4.615%
ROC Oil                          4.155%              3.693%               3.2%
Energy Africa                                                             20.0%


For further information contact:

Harry Wilson, Chief Executive, Sterling Energy plc:              01582 462 121
Nigel Quinton, Operations Director, Sterling Energy plc:         01582 462 121
Allan Piper, First City Financial Public Relations:              020 7436 7486
                                                                 07736 064 982


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