Successful Well Operations

Sterling Energy PLC
29 June 2005

29 June 2005


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

                  Successful Well Operations in Gulf of Mexico

Sterling Energy Plc, the London AIM listed (SEY) independent international oil &
gas exploration and production company, today announced the successful outcome
from the operations of two offshore wells in the Gulf of Mexico. A work-over of
a third well has commenced.

Eugene Island 268 - Sterling has successfully entered and recompleted the A-1
well at Eugene Island 268. The well was recompleted in the Lower Pleistocene EO
and EK sands with a sliding collar production assembly. The well tested gross
gas flows of 3.9 million cubic feet per day (mmcfd) from the deeper EO Sand. The
rig is in the process of moving off location following which the well will be
hooked up to the sales line. The upper recompletion in the shallower EK Sand
will be opened for production upon depletion of the EO Sand.

Sterling has a 60% working interest and 45% net revenue interest in the A-1
well.

Mustang Island 749 - Sterling has successfully drilled and completed the MU 749
GU No. 2 well adjacent to existing Sterling production at Mustang Island. The
well encountered 30 feet of net pay sand approximately 30 feet high structurally
to the other productive wells which have been drilled in this Cib Haz Sand
reservoir. Although Sterling encountered operational problems and delays in
drilling the No. 2 well, the well has now been completed and shut in following
positive pressure tests on the reservoir. Fabrication of the production
facilities has now commenced following which the No. 2 well will be connected to
Sterling's Mustang Island 747 Platform for production. The rig has now moved off
location to Matagorda Island.

After completing a farmout during drilling, Sterling owns a 75% working interest
and 56.4% net revenue interest in the No. 2 well.

Matagorda Island 520 - work-over operations have now commenced on the No. 16
well in the El Gordo field where Sterling has a 57.3% working interest and 45.8%
net revenue interest.

Sterling Finance Director, Graeme Thomson said;

'We are delighted with the results from these two wells which represent a
significant step towards our target of doubling production from the Gulf of
Mexico by the year end. With forward gas prices averaging over $7.50 /mmbtu for
the next year we are looking forward to strong cash flow from these assets.'

For further information contact:

Harry Wilson, Chief Executive, Sterling Energy plc:         01582 462 121
Graeme Thomson, Finance Director, Sterling Energy plc:      01582 462 121
Martin Jackson, Citigate Dewe Rogerson:                     020 7282 2888
Rob Collins, Evolution Securities Limited:                  020 7071 4311

www.sterlingenergyplc.com   Stock Symbol: SEY


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