New production well

Sterling Energy PLC
11 December 2002


                              New production well

Sterling Energy plc is delighted to announce the successful completion of the
Gryphon Number Two (#2) production well in the High Island 52 Field in the Gulf
of Mexico. The well is currently being connected to the field's production
platform, and is expected to produce gas flows significantly in excess of
initial expectations, early in 2003.


Sterling Chief Executive Harry Wilson said: 'This demonstrates again our
successful strategy of identifying unexploited potential in existing fields.
Shareholders stand to benefit significantly from additional royalty revenues
achieved at no drilling risk to Sterling.'


Sterling's strategy in the Gulf of Mexico is to acquire producing assets in
areas neglected by previous owners, and to use its own technical and commercial
expertise to unlock upside value.


The company acquired its interest in the High Island 52 field in late 2000, and
sold an interest in one part of the field to Gryphon Exploration who undertook
to carry the drilling risk at no cost to Sterling. The Gryphon #1 well came on
stream at over 20 million cubic feet per day (mmcf/d) in 2001, and the
completion of Gryphon #2 is now expected to increase production significantly.


Sterling has retained a 7.58% royalty interest in the lease that includes the
Gryphon wells.


Early indications are that  Gryphon #2 has the potential to produce at a similar
or better rate than Gryphon #1.  Should this prove to be the case, it would add,
at current gas prices, over $180,000 per month to Sterling Energy's pre-tax cash
flow.  Gas prices in the US are now at $4 /mcf and according to the futures
market, likely to remain high for the foreseeable future.


Sterling has an ongoing programme which will see the recompletion and drilling
of up to 6 wells in 2003. This activity should add further to the company's
production and cash flow from its six producing properties in the Gulf of
Mexico. Sterling also owns a 100% working interest in a large exploration
license offshore Philippines.


Shares in Sterling started trading on the Alternative Investment Market in
October 2002 following its reverse takeover by LEPCO plc and a successful
placing and open offer.


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