Early Drilling Start

Sterling Energy PLC
22 June 2004





       Early African drilling start heralds 'exciting period' for company



Oil exploration and production group Sterling Energy is entering an exciting new
phase with the start this summer of an exploration and appraisal drilling
programme offshore West Africa, Chairman Richard O'Toole said today.



'It promises to be an exciting period for us all', Mr O'Toole told shareholders
at the company's Annual General Meeting in London, at which all the resolutions
were duly passed.



Sterling will participate in up to 20 wells offshore West Africa, at virtually
no expense to the company thanks to 'carried interest' arrangements which leave
other partners to pay most of the cost.



The company acquired the West African acreage as a result of its successful £40
million takeover of Fusion Oil & Gas late last year. Since then, offshore
Mauritania, the Chinguetti discovery has been confirmed as commercial and the
potentially larger Tiof field has been discovered.



Mr O'Toole added: 'The early successes offshore Mauritania provide clear
examples of the potential that may exist elsewhere within our West African
portfolio, and we are looking forward to the drilling programme.'



Drilling on the first new Mauritania well is expected to begin in August.



The company is also planning an extensive Gulf of Mexico development drilling
programme of at least six wells, which aims to more than double production over
the next year. The first of these wells, on High Island A68, is due to spud next
week.







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

Rob Collins, Evolution Beeson Gregory:                        020 7071 4311





www.sterlingenergyplc.com                                Ticker Symbol: SEY


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