Philippines Gas Assets Sale

Sterling Energy PLC
25 April 2005



25 APRIL 2005



                              STERLING ENERGY PLC

                SALE OF PHILIPPINES GAS ASSETS TO JOINT VENTURE


Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration
and production company, today announces the sale of its GSEC 101 license to
Forum Energy Plc ('Forum Energy'), in return for an equity interest of 23.0% in
Forum Energy.


Forum Energy is a joint venture company specially created by Sterling Energy and
Forum Energy Corporation, a NASD (OTCBB) listed energy group, to amalgamate and
manage the energy assets of both companies in the Philippines region.  This is
subject to approval by the shareholders of FEC of which over 80% have already
undertaken to vote in favour at the EGM to be held on 18 May 2005.  Mr Harry
Wilson, Chief Executive of Sterling Energy and Mr Graeme Thomson, Finance
Director of Sterling Energy, have been appointed non-executive directors of
Forum Energy.


The GSEC 101 license was acquired by Sterling Energy in 2002 and lies offshore
Palawan in the South China Sea, Philippines, an area known as Reed Bank.  The
license contains the Sampaguita gas discovery which has flowed gas during test
and over which it is planned to shoot a seismic survey shortly.  In addition,
Forum Energy will have interests in oil & gas assets in the Northern Cebu Island
and coal operating contracts in Central and South Cebu Island.  A pre-IPO
funding of £3.35 million has also been conditionally completed valuing the
Company at £17.4 million.  On this basis, Sterling's equity holding in Forum
will be valued at £4 million.


It is intended that Forum Energy will seek admission to the Alternative
Investment Market, operated by the London Stock Exchange, later in 2005.


Following the disposal, Sterling Energy will be focused on its core areas, the
Gulf of Mexico and Africa.


Harry Wilson, Chief Executive of Sterling Energy Plc, said:


'The disposal of Reed Bank will allow Sterling to focus its resources on its
core activities in the Gulf of Mexico and Africa, while retaining exposure to
the upside potential of a more balanced  Philippine energy asset portfolio which
has a great deal of upside.'


'Sterling's exploration effort is concentrated on its African assets where an
active drilling programme is ongoing.  In particular, it has interests in wells
in Mauritania, Gabon and Guinea Bissau at virtually no cost to itself, and a
range of other exploration/appraisal opportunities. Sterling is also intent on
substantially increasing production and cashflow in the Gulf of Mexico.'



Enquiries

Sterling Energy (01582 462 121)             Web site: www.sterlingenergyplc.com
Harry Wilson
Graeme Thomson


Citigate Dewe Rogerson (020 7638 9571)
Media: Martin Jackson / Rachel Lankester
Analyst: Nina Soon


Evolution Securities (020 7071 4300)
Rob Collins / Henry Turcan


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