Operating Update

Sterling Energy PLC
12 November 2007



12 November 2007

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


                               OPERATIONS UPDATE


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, provides a summarised operations update:





  • Sterling has separately announced today that it has entered into a
    Production Sharing Contract ('PSC') with the Kurdistan Regional Government
    of Iraq ('KRG') for the highly prospective Sangaw North exploration block 
    ('Block')



  • An exploration well is due to commence on the 5-20 million bbls Admiral
    Prospect offshore Gabon in early December in which Sterling has a c.28%
    interest. Sterling is carried for its costs on approximately two thirds of
    its interest



  • Key decisions regarding additional data and possible early drilling on a
    significant prospect are anticipated soon on the offshore Madagascar
    licences (Sterling 30%)



  • Third quarter net group production averaged c.6,100 boepd, an increase of
    25% over the first half



  • Hedges have been implemented for 1,000 bpd of oil for 2008/9 at an average
    of  $74.30/bbl and for a total of 3.5 bcf of gas until July 2009 at an
    average price of c.$7.75/mmbtu



  • The USA operations have continued their successful drilling programme with
    30 wells in 2007 and an 80% success rate. Three wells are currently drilling



  • A second horizontal Austin Chalk well has now commenced production sales
    at approximately 1 mmcfed net. Testing equipment has just arrived on the
    Thunder Stud location for a six week programme



  • Phase 2B development work on Chinguetti field remains on track to commence
    in q1 2008 with 2 development wells and 3 workovers expected. At least one
    exploration well and one appraisal well are also expected in the area where
    Sterling has a royalty interest.










Enquiries


Sterling Energy Plc (0207 405 4133)          Web site: www.sterlingenergyplc.com
Harry Wilson
Graeme Thomson


Evolution Securities (020 7071 4300)
Rob Collins
Tim Redfern


Citigate Dewe Rogerson (020 7638 9571)
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.










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