US production boost

Sterling Energy PLC
27 March 2003

Sterling Energy plc is pleased to announce a significant increase in gas
revenues thanks to better-than-expected production from the Gryphon #2 well in
the Gulf of Mexico.

The well is expected to produce royalty income for Sterling of around $300,000
in March, with gross production flows of some 25 million cubic feet per day
(mmcf/d). Sterling has a 7.58% royalty interest in the area.

The stabilised production flow from Gryphon #2 is substantially higher than
expected and the reservoir interval is about 3 times thicker than that
encountered by the Gryphon #1 well. Sterling is currently evaluating further
drilling targets in the area.

Harry Wilson, Chief Executive of Sterling Energy, said: 'The success of Gryphon
#2 underscores our ability to identify unexploited potential in existing fields.
The revenue from Gryphon #2 is royalty income achieved at no additional cost to
us following a successful farm-out. An additional bonus is that gas prices are
now over $5 per mcf. We are currently evaluating the impact on the reserves of
the field of the thicker than expected reservoir interval. We are optimistic
that this will result in a significant upgrading of reserves.'

Sterling's strategy is to acquire proven reserves in fields overlooked by
previous owners, using its technical and commercial expertise to unlock upside
value.

Sterling has recently opened an office in Houston where its Gulf of Mexico
operations are being managed by Bob Munn, who has been appointed Vice President
of Sterling Energy, Inc. Mr Munn has extensive experience in the Gulf of Mexico,
and spent more than 10 years as a senior exploration geologist with Amerada Hess
before joining Sterling from F-W Oil Exploration.

Sterling, quoted on London's Alternative Investment Market, plans a programme of
recompletions, workovers and drilling of up to 6 wells in the Gulf of Mexico
in 2003. This is expected to add further to production and operating cash flow
from the company's six producing properties there. The company also owns a 100%
working interest in a large exploration license offshore Philippines.

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
                                                          07050 203 304
Chris Callaway, Evolution Beeson Gregory:                 020 7071 4324

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