SEY.L Regulatory News (SEY)

24 May 2011

STERLING ENERGY PLC

("Sterling" or the "Company")

Kurdistan Operations Update

Sterling (AIM: SEY), the independent oil and gas exploration and production company with interests in the Middle East and Africa, provides the following update for the Sterling operated Sangaw North block in Kurdistan (53.33% working interest).

The Sangaw North-1 well has been drilled to a total depth of 4,190 metres, within the Triassic Kurra Chine formation. Wireline logs have been run across the open hole section and are currently being interpreted.

The joint-venture partnership has elected, based on gas shows while drilling, to conduct a flow test across the open hole section. The flow test, including preparatory operations, is expected to take approximately three weeks to complete. Further flow testing may be undertaken depending on the results of the first flow test and interpretation of the drilling and petrophysical data acquired in the well.

Angus MacAskill, Sterling's Chief Executive said:

"We are pleased to have reached the planned well depth in this very challenging drilling environment and look forward to the outcome from the ongoing programme of data acquisition."

Angus MacAskill, M.Eng. Petroleum Engineering (1987), Chief Executive of Sterling Energy Plc, who has been involved in the oil industry for 29 years, is the qualified person that has reviewed the technical information contained in this press release.