Drilling Report

Sterling Energy PLC
16 December 2003

The board of Sterling Energy plc would like to bring to shareholders' attention 
the following announcement posted this morning by Fusion Oil & Gas plc:

'Operational Update


The following statement relates to operational developments.

Woodside Mauritania Pty Ltd, Operator of the Mauritania Area B Joint Venture,
reported earlier today that 'a preliminary evaluation of wireline logs and
pressure data acquired from the Chinguetti-4-7 (Tiof West) step-out exploration
well indicates a gas column of approximately 4 metres overlying a gross oil
column of approximately 122 metres.  Water bearing sands have been confirmed
below the hydrocarbon bearing interval.

The top of the hydrocarbon bearing interval was intersected down-dip from the
top of the hydrocarbon bearing interval in the Chinguetti-4-6 (Tiof) discovery
well.  Preliminary analysis of the pressure data indicates that the oil column
is likely to be in direct pressure communication with the oil column intersected
in the Chinguetti-4-6 (Tiof) well.

Further appraisal drilling will be required to assess the significance of the
two wells and to establish connectivity and the net to gross of the reservoir
section.

Since reporting on the well on 9 December 2003, the 36 inch conductor was jetted
to 1,423 metres, 18 inch hole was drilled to 2,127 metres, 13 3/8 inch casing
was run and cemented and 12 1/4 inch hole was drilled to the final total depth
of 2,991 metres.

The well will now be plugged and abandoned, as planned.'

Participants in the Area B PSC are as follows:
Woodside Mauritania Pty Ltd (Operator)                           35.0% (Operator)
AGIP Mauritania BV                                               35.0%
Hardman Resources Ltd                                            21.6%
Fusion Mauritania B Limited                                       6.0%
Roc Oil (Mauritania) Company                                      2.4%'

As previously announced on 28 May 2003, the Company has entered into an
agreement with Premier Oil plc regarding the disposal of its interests in
Mauritania.  Subject to fulfilment of certain conditions, Fusion will receive
cash payments linked to future production attributable to Fusion's current
interests from PSC A and PSC B.'


For further information contact:

Harry Wilson, Chief Executive, Sterling Energy plc:      01582 462 121
Graeme Thomson, Finance Director, Sterling Energy plc:   01582 462 121
Allan Piper, First City Financial Public Relations:      020 7436 7486
                                                         07736 064 982
Chris Callaway, Evolution Beeson Gregory:                020 7071 4309



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

DRLILFFFFFLRLIV