Sale of US Business

Sterling Energy PLC
07 April 2008

 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
  INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, JAPAN,
                              CANADA OR AUSTRALIA.




07 April 2008

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


                         PROPOSED SALE OF U.S. BUSINESS



Sterling Energy (AIM: SEY), an independent oil & gas exploration and production
company with interests in North America, Africa and the Middle East, today
announces that it has retained BMO Capital Markets to manage a sales process for
its U.S. oil &  gas exploration and production business (the 'U.S. business').


The Board of Sterling has recently undertaken a comprehensive strategic review
of the Company's assets and prospects and has concluded that it would be in
shareholders' best interests to sell the U.S. business.  The Board believes that
the U.S. business has grown to a size that makes it attractive to prospective
buyers.  The Board has therefore mandated BMO Capital Markets to manage the
sales process.


The Board expects that the proceeds of any sale will enable it to repay the
Company's borrowings and leave it with significant net cash. This, together with
cash revenues from its Mauritanian producing interests, will provide funding to
increase the Company's investment in the very considerable upside potential of
its key assets in Africa and the Middle East.


Sterling will focus on an increasing number of higher impact exploration
prospects, which currently include Madagascar, Kurdistan, Gabon, AGC (a joint
exploration zone between Senegal and Guinea Bissau) and Cameroon. It will also
pursue new opportunities including potential acquisitions.


Studies by an independent consultancy, RISC, covering two of the Company's
prospects in Kurdistan and offshore Madagascar, were recently completed. These
indicated unrisked best estimate net prospective resources of over 500 million
barrels of oil with a high net estimate of over 1,900 million barrels of oil for
Sterling's current interests on those two prospects.



Sterling will update shareholders further in due course.



Background to U.S. Business

Sterling's U.S. operations include a substantial inventory of low-risk
development and exploration projects, primarily in the onshore Gulf Coast and
shallow water Gulf of Mexico.


On 14 March 2008, Sterling announced a gas discovery from its Marlin #1 well.
The well has since come on stream at initial rates of over 4.5 mmcfged (750
boed) net to Sterling, some 25% higher than the initial announced test rate.  An
offset to this well is scheduled to be drilled in May. Other projects in South
Texas, Southeast Texas and state waters offshore Texas, some of which have
recently been farmed out, will be drilled in the near-term.


At the end of March 2008, Sterling's U.S. net production was a record 32 mmcfged
(5,333 boed).


Based on independent petroleum consultants reports, year-end 2007 U.S. 2P
reserves were 111 bcfge (18.5 million boe), of which proved reserves constitute
approximately 65%. Possible reserves add a further 70 bcfge (11.6 million boe).





Graeme Thomson, CEO of Sterling, commented:

'We believe that this is a very opportune time to sell our U.S. business,
against a background of growing production and rising gas prices.  The sale will
leave Sterling financially well positioned, adequately resourced and more
sharply focused on high impact 'company making' exploration prospects. In
particular, I am very excited about Kurdistan and Madagascar where independent
studies have indicated a combined unrisked net economic value at potentially
over $2 billion if both prospects are successful at the best estimate level.  It
therefore makes sense for Sterling to position itself such that our shareholders
have the appropriate level of participation in the exploration and exploitation
of these and other major prospects.'

Enquiries

Sterling Energy Plc ([phone])                 www.sterlingenergyplc.com
Graeme Thomson, CEO
Harry Wilson, Deputy Chairman
Jon Cooper, CFO

Evolution Securities ([phone])
Rob Collins, Director

BMO Capital Markets ([phone])
Stewart Frankel, Director

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



In accordance with the guidelines of the AIM Market of the London Stock
Exchange, Harry Wilson, BSc (Hons) Physics (1973), Executive Deputy Chairman of
Sterling Energy Plc, who has been involved in the oil industry for over 33
years, is the qualified person that has reviewed the technical information
contained in this press release.



Definitions


2P                   - proven and probable
bcfge                - billions of cubic feet gas equivalent
boe                  - barrels of oil equivalent
boed                 - barrels of oil equivalent per day
mmcfged              - millions of cubic feet of gas equivalent per day




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