EGM Statement

Sterling Energy PLC
19 November 2004



                                        
                              Sterling Energy plc
                    Investment in Mauritania approved at EGM

On 27 October 2004, the Company announced that it had entered into a Funding
Agreement with the Mauritanian Government pursuant to which it would provide a
letter of credit for US$130million to enable the Mauritanian Government to
exercise its right to participate for a 12 per cent. interest in the development
of the offshore Chinquetti Field.

At the EGM held at 10.00am yesterday, the resolution proposed and set out in the
notice of meeting dated 26 October 2004, concerning the equity fund raising of
£97million at 17 pence per share, was duly passed. The New Ordinary Shares
issued in connection with the Placing are expected to be admitted to trading on
AIM at 8.00am today.

The Company is delighted to announce that, subject only to Admission, all of the
conditions to the Transaction have either been fulfilled or waived.

19 November 2004

Enquiries:

Harry Wilson, Chief Executive, Sterling Energy plc 01582 461 121
Graeme Thomson. Finance Director, Sterling Energy plc 01582 461 121
Rob Collins, Henry Turcan, Evolution Securities Limited 020 7071 4300
Allan Piper, First City Financial Public Relations 020 7436 7486

Note:
Words and expressions where defined in the circular issued by the Company and
dated 26 October 2004 shall, unless the context requires otherwise, have the
same meaning in this announcement.




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