Statement re. Press Comment

Sterling Energy PLC
25 October 2004



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


                        Statement re. Press Speculation



The Board of Sterling notes yesterday's press speculation about a possible
substantial transaction and the Company's share price movement today. It
confirms that it is in advanced discussions concerning an investment in West
Africa.


A further announcement will be made when appropriate.


Enquiries:


Rob Collins, Evolution Securities Limited:
020 7071 4300

Allan Piper, First City Financial Public Relations:
020 7436 7486


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