SEY.L Regulatory News (SEY)

2 February 2010

STERLING ENERGY PLC

("Sterling" or the "Company")

Spudding of Sangaw North Exploration Well

Sterling, the AIM listed (symbol: SEY) oil & gas exploration and production company with interests in Africa and the Middle East, is pleased to announce the Sangaw North-1 exploration well was spud on 1st February 2010.

Kurdistan - Sangaw North PSC.

The Sangaw North-1 well, the first exploration well on the Sangaw North Block, will target several prospective Cretaceous and Jurassic aged reservoirs and has a planned depth of 3,660m. An independent review of the Sangaw North prospect undertaken by RISC (UK) Ltd gives a best estimate of gross prospective oil resources for the Cretaceous interval of 804 million barrels.

The well has been designed with the option to drill deeper to a total depth of 4,160m to test additional Jurassic aged reservoirs; the decision to drill this additional section will be taken based upon the drilling results.

Drilling and preliminary evaluation is anticipated to take 180 days.

Sterling is the operator of the Sangaw North Block with a 53.33% WI.

The Block, which covers an area of 492 km2, lies in a highly prospective area around 50 km south east of the giant Kirkuk oil field, on trend with Addax Petroleum's Taq Taq oil field and the Chemchemal gas condensate discovery and 40 km south of Heritage's recent Miran West oil discovery.

Enquiries

Sterling Energy Plc (+44 20 7405 4133)

Alastair Beardsall, Executive Chairman

Evolution Securities (+44 20 7071 4300)

Rob Collins

Chris Sim

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Grosse, B.Sc. (Hons) Geology & Geophysics (1980), Exploration & Technical Director of Sterling Energy Plc, who has been involved in the oil industry for over 29 years, is the qualified person that has reviewed the technical information contained in this press release.