SEY.L Regulatory News (SEY)

8 May 2008 13:40

Sterling Energy PLC08 May 2008 8 May 2008 STERLING ENERGY PLC ("Sterling" or the "Company") OFFSHORE MAURITANIA DRILLING UPDATE BANDA NW ST-1 Sterling Energy (AIM: SEY), an independent oil & gas exploration and productioncompany with interests in North America, Africa and the Middle East, notes theannouncement made on 07 May 2008 by Roc Oil Company Limited ("ROC") in respectof the Banda NW ST-1 well, PSC Area A and PSC Area B, offshore Mauritania (seebelow). Sterling has a royalty interest in PSC Area A and PSC Area B, plus an economicinterest in the Chinguetti Field, PSC Area B, through a funding agreement withthe State oil company Societe Mauritanienne des Hydrocarbures, who own a 12%interest in the field. At present oil prices, the amount received by Sterlingunder the royalty is around $15 per bbl sold. The royalty agreement alsoprovides for payments to Sterling for gas produced on an oil equivalence basis. The ROC Oil announcement: "Roc Oil (Mauritania) Company, a wholly owned subsidiary of ROC, advises that asat midnight (local time) on 3 May 2008, the Banda NW ST-1 sidetrack well hadbeen suspended. The results of the wireline logging, Modular Dynamic Tester (MDT) pressuretesting and sampling indicate that Banda NW ST-1 intersected an 85 metre grossgas column, with 15 metres (18%) net gas pay and a 15 metre gross oil column,with 10 metres net oil pay (67%). The fluid contacts were as expected and thewell is interpreted to be in communication with the original Banda-1 discoverywell drilled in 2002, approximately 2 kilometres to the east. The Banda Fieldis in approximately 300 metres of water and spans PSC Area A and PSC Area B. The Atwood "Hunter" will commence with the planned well intervention work on theChinguetti Field, once it has completed the move from Banda NW ST-1." For further information contact: Sterling Energy Plc (+44 20 7405 4133) www.sterlingenergyplc.comGraeme Thomson, CEOHarry Wilson, Deputy Chairman Evolution Securities (+44 20 7071 4300)Rob Collins, Director Citigate Dewe Rogerson (+44 207 628 9571) Media enquiries: Martin Jackson Analyst enquiries: George Cazenove This information is provided by RNS The company news service from the London Stock Exchange