Update

Sterling Energy PLC
12 June 2007






12 June 2007



                              STERLING ENERGY PLC



                                     UPDATE





Sterling Energy plc ('Sterling') announces that petrophysical analysis indicates
that multiple pay horizons have been encountered in the Brown1 well ('Thunder
Stud') in south Louisiana, for which it is operator (15.0 % WI, 10.8% NRI).



Sterling also announces an increase in its US bank facilities and that an
updated Group presentation is available on its website
(www.sterlingenergyplc.co.uk) in advance of a planned series of institutional
presentations.



The Brown1 reached its target depth of c17,900 feet, was logged and a 5-1/2'
production liner has been set.  A series of production tests on these zones are
planned for later in the year when equipment is available.  All new information,
including from the testing, will need to be evaluated and incorporated into
Sterling's geological interpretation, following which the commercial potential
of the well and of the whole project will become clearer.



Sterling's US bank facilities have also been increased by $6.8 million to a
total of $61.5 million. This is principally as a result of the successful
onshore drilling by the former Whittier company since the start of the year.
These facilities are secured against the Whittier assets, which were acquired in
late March 2007. Currently, Sterling has Group cash balances of c$37 million and
undrawn bank facilities of c$19 million.



Harry Wilson, CEO of Sterling said



'We are very pleased with the initial results of the Whittier deal and the
drilling in the US so far this year. Our strengthened team there has the ability
to deliver consistent production and reserve increases through drilling and
acquisition. Our growing cash flow should help to unlock and expand the upside
potential in our international portfolio.'



For further information contact:

Sterling Energy plc ([phone])
Harry Wilson, Chief Executive
Graeme Thomson, Finance Director

Evolution Securities ([phone])
Rob Collins

Citigate Dewe Rogerson ([phone])
Media enquiries: Martin Jackson / George Cazenove
Analyst enquiries: Nina Soon

www.sterlingenergyplc.com             Ticker Symbol: SEY









'In accordance with the guidelines of the AIM Market of the London Stock
Exchange, Harry Wilson, BSc (Hons) Physics (1973), Chief Executive Officer 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




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