Drilling Update

Sterling Energy PLC
14 January 2008

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

                             GABON DRILLING

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, announces that the THAM-1 well, Themis Marin, was drilled to its target
depth of 1,330 metres in 11 days, on budget. The reservoir target was
encountered low to prognosis with limited hydrocarbon shows and the well is now
being plugged and abandoned. Sterling has a 28.5% interest and had partially
farmed out its interest in the well and thus paid only 10.5% of the
approximately $13.5 million well costs.

The second well in the Gabon drilling programme, ICM-1, is scheduled to spud in
April in the Iris Marin licence (Sterling 50% interest*). This well has much
higher potential upside and is targeting gross reserves of 11-40 million bbls.

Enquiries

Sterling Energy Plc ([phone])      Web site: www.sterlingenergyplc.com
Harry Wilson
Andy Grosse

Evolution Securities ([phone])
Rob Collins
Tim Redfern

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), 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.



* subject to completion of pre-emption over 11.43%


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