New Banking Facilities

Sterling Energy PLC
18 December 2007


18 December 2007


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

                      New Banking Facilities Completed


Sterling (symbol: SEY), an AIM listed independent oil & gas exploration and
production company with interests in the Gulf of Mexico, Africa and the Middle
East, is pleased to announce that it has signed new banking facilities with an
initial borrowing base of $160.3 million and with the flexibility to increase
this to up to $265 million. The new facilities have a term of 6 years at a
current rate of interest of 6.9% pa.  Syndication by the lead bank, Natixis, is
in progress.  The new facilities complete the refinancing of Sterling's existing
bank facilities.

All conditions relating to the refinancing have been met and drawdown of $153.8
million has been made. As is usual, there is a borrowing base review every six
months with the first one effective mid-January 2008.


Graeme Thomson, Sterling's Finance Director said:

'This is a major achievement, particularly in light of current credit market
conditions, as it refinances all of Sterling's debt which principally arise from
the early 2007 Whittier deal.  It now gives Sterling a known platform on which
to build its borrowing base and will greatly extend its banking relationships'.





Enquiries

Sterling Energy ([phone])          Web site: www.sterlingenergyplc.com
Harry Wilson
Graeme Thomson


Citigate Dewe Rogerson ([phone])
Media enquiries: Martin Jackson
Analyst enquiries: Kate Delahunty


Evolution Securities ([phone])
Rob Collins








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