Holding(s) in Company

Sterling Energy PLC
23 May 2007



Form TR-1 with annex. FSA Version 2.1 updated April 2007

+----------------------------------------+
|For filings with the FSA include the    |
|annex                                   |
|                                        |
|For filings with issuer exclude the     |
|annex                                   |
+----------------------------------------+

+-----------------------------------------------------------------------------+
|TR-1: Notifications of Major Interests in Shares                             |
+-----------------------------------------------------------------------------+

+-----------------------------------------------+-------------------------------+
|1. Identity of the issuer or the underlying    |Sterling Energy plc            |
|issuer of existing shares to which voting      |                               |
|rights are attached:                           |                               |
+-----------------------------------------------+-------------------------------+
|                                                                               |
|                                                                               |
|2. Reason for notification (yes/no)                                            |
+--------------------------------------------------------------------+----------+
|                                                                    |Yes       |
|                                                                    |          |
|An acquisition or disposal of voting rights                         |          |
+--------------------------------------------------------------------+----------+
|                                                                    |          |
|                                                                    |          |
|An acquisition or disposal of financial instruments which may result|          |
|in the acquisition of shares already issued to which voting rights  |          |
|are attached                                                        |          |
+--------------------------------------------------------------------+----------+
|                                                                    |          |
|                                                                    |          |
|An event changing the breakdown of voting rights                    |          |
+--------------------------------------------------------------------+----------+
|                                                                    |          |
|                                                                    |          |
|Other (please specify):______________                               |          |
+---------------------------------------+----------------------------+----------+
|                                       |Artemis Investment Management Ltd      |
|                                       |                                       |
|3. Full name of person(s) subject to   |                                       |
|notification obligation:               |                                       |
+---------------------------------------+---------------------------------------+
|                                       |Artemis Special Situations             |
|                                       |                                       |
|4. Full name of shareholder(s) (if     |                                       |
|different from 3):                     |                                       |
+---------------------------------------+---------------------------------------+
|                                       |21 May 2007                            |
|                                       |                                       |
|5. Date of transaction (and date on    |                                       |
|which the threshold is crossed or      |                                       |
|reached if different):                 |                                       |
+---------------------------------------+---------------------------------------+
|                                       |22 May 2007                            |
|                                       |                                       |
|6. Date on which issuer notified:      |                                       |
+---------------------------------------+---------------------------------------+
|                                       |3%                                     |
|                                       |                                       |
|7. Threshold(s) that is/are crossed or |                                       |
|reached:                               |                                       |
+---------------------------------------+-------+--------------------+----------+
+------------------------------------------------------------------------------------------+
|8: Notified Details                                                                       |
+------------------------------------------------------------------------------------------+
|A: Voting rights attached to shares                                                       |
|                                                                                          |
|                                                                                          |
+-------------+----------------------+-----------------------------------------------------+
|Class/type of|Situation previous to |Resulting situation after the triggering transaction |
|shares       |the triggering        |                                                     |
|             |transaction           |                                                     |
|If possible  +-----------+----------+----------+---------------------+--------------------+
|use ISIN code|Number of  |Number of |Number of |Number of voting     |Percentage of voting|
|             |shares     |voting    |shares    |rights               |rights              |
|             |           |rights    |          +----------+----------+----------+---------+
|             |           |          |          |          |          |          |         |
|             |           |          |          |          |          |          |         |
|             |           |          |          |Direct    |Indirect  |Direct    |Indirect |
+------------++----------++---------++---------++---------++---------++---------++---------+
|GB0005299929 |44,502,519 |44,502,519|47,371,905|47,371,905|          |3.02%     |         |
+------------++----------++---------++---------++---------++---------++---------++---------+

+--------------------------------------------------------------------------------+
|B: Financial Instruments                                                        |
|                                                                                |
|                                                                                |
+--------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction                            |
|                                                                                |
|                                                                                |
+---------------+---------------+---------------+----------------+---------------+
|Type of        |Expiration date|Exercise/      |No. of voting   |Percentage of  |
|financial      |               |conversion     |rights that may |voting rights  |
|instrument     |               |period/date    |be acquired (if |               |
|               |               |               |the instrument  |               |
|               |               |               |exercised/      |               |
|               |               |               |converted)      |               |
+---------------+---------------+---------------+----------------+---------------+
|               |               |               |                |               |
|               |               |               |                |               |
|               |               |               |                |               |
+---------------+---------------+---------------+----------------+---------------+



+-----------------------------------------------------------------------------+
|Total (A+B)                                                                  |
|                                                                             |
|                                                                             |
+--------------------------------------+--------------------------------------+
|Number of voting rights               |Percentage of voting rights           |
+--------------------------------------+--------------------------------------+
|47,371,905                            |3.02%                                 |
+--------------------------------------+--------------------------------------+



+-----------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and /or  |
|the financial instruments are effectively held, if applicable:               |
+-----------------------------------------------------------------------------+
|N/A                                                                          |
+-----------------------------------------------------------------------------+

+-----------------------------------------------------------------------------+
|Proxy Voting:                                                                |
|                                                                             |
|                                                                             |
+--------------------------------------+--------------------------------------+
|10. Name of proxy holder:             |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|11. Number of voting rights proxy     |                                      |
|holder will cease to hold:            |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|12. Date on which proxy holder will   |                                      |
|cease to hold voting rights:          |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+

+--------------------------------------+--------------------------------------+
|13. Additional information:           |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|14 Contact name:                      |Karen Paine                           |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|15. Contact telephone name:           |0131 718 0414                         |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+


For notes on how to complete form TR-1 please see the FSA website.

Note: Annex should only be submitted to the FSA not the issuer

+-----------------------------------------------------------------------------+
|Annex: Notification of major interests in shares                             |
+-----------------------------------------------------------------------------+



+-----------------------------------------------------------------------------+
|A: Identity of the persons or legal entity subject to the notification       |
|obligation                                                                   |
+--------------------------------------+--------------------------------------+
|Full name                             |                                      |
|                                      |                                      |
|(including legal form of legal        |                                      |
|entities)                             |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Contact address                       |                                      |
|                                      |                                      |
|(registered office for legal entities)|                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Phone number & email                  |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Other useful information              |                                      |
|                                      |                                      |
|(at least legal representative for    |                                      |
|legal persons)                        |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+

+-----------------------------------------------------------------------------+
|B: Identity of the notifier, if applicable                                   |
+--------------------------------------+--------------------------------------+
|Full name                             |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Contact address                       |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Phone number & email                  |                                      |
|                                      |                                      |
|                                      |                                      |
+--------------------------------------+--------------------------------------+
|Other useful information              |                                      |
|                                      |                                      |
|                                      |                                      |
|                                      |                                      |
|(e.g. functional relationship with the|                                      |
|person or legal entity subject to the |                                      |
|notification obligation)              |                                      |
+--------------------------------------+--------------------------------------+

+-----------------------------------------------------------------------------+
|C: Additional information                                                    |
+-----------------------------------------------------------------------------+
|                                                                             |
+-----------------------------------------------------------------------------+




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