LTIP Allotment

Sterling Energy PLC
28 September 2007


               Sterling Energy Plc ('Sterling' or the 'Company')

                                 LTIP Allotment

The Board of Sterling Energy plc reports implementation of the Long Term
Incentive Plan ('LTIP') as approved by shareholders on 24th July 2007.

In accordance with the approved LTIP, on 27th September 2007 the Company have
agreed to grant nominal cost options to the Directors to acquire ordinary shares
('Shares') (the 'A' Options) and at the same time, will grant nominal cost
options to acquire Shares to the trustees of the Sterling Energy Plc Employee
Benefit Trust (the 'EBT') (the 'B' Options). The trustees of the EBT have
indicated their agreement to make awards to the directors of reversionary
interests, which will initially be represented by the B Options.

Subject to the trustees exercising their discretion the combined awards under
the A and B Options will be as follows:

Director                       Face value of the award            Maximum number
                                                               of shares awarded
                                                                  under the LTIP

Dick Stabbins                  £100,000                                  851,000
Non-Executive Chairman

Harry Wilson                   £692,000                                5,889,000
Chief Executive

Graeme Thomson                 £506,000                                4,306,000
Finance Director

Paul Griggs                    £384,000                                3,268,000
Commercial Director

Andrew Grosse                 £404,000                                 3,438,000
Exploration and 
Technical Director

Peter Wilde                    £63,000                                   536,000
Non-Executive Director

Chris Callaway                 £63,000                                   536,000
Non-Executive Director

Also on 27th September 2007 the Company agreed to award nominal cost options to
acquire Shares to other employees under the approved LTIP as set out below.

                              Face value of the award         Maximum number
                                                              of Shares awarded
                                                              under the LTIP

Awards to other staff         £3,049,992                      25,928,000

The actual number of shares that will be finally awarded out of the maximum
numbers stated above under the LTIP, or alternative cash settlement at the
Company's option, will depend upon the achievement of performance criteria
measured over a vesting period of three years for each award. For this purpose
the original share price to be used in the calculation was the closing market
price on 27 September 2007, being 11.75p.


28 September 2007



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