SEY.L Regulatory News (SEY)

6 August 2010

Kurdistan - Sangaw North PSC

Sterling Energy Plc ("Sterling" or "Company"), the AIM listed independent oil & gas, exploration & production, company with interests in the Middle East and Africa, provides the following update on its activities:

Sangaw North Exploration Well

Operations at the Sangaw North #1 exploration well have been halted following a failure of drilling rig equipment. The extent of the repair work is being assessed, however an initial assessment indicates the requirement for replacement parts to be imported and mobilisation of specialist engineers to complete the repairs. Sterling estimates that repairs may take up to 21 days to complete.

Following the satisfactory completion of repairs, Sterling will resume the drill stem testing of the prospective zones identified from the well data.

Enquiries

Sterling Energy Plc (+44 20 7405 4133)

Alastair Beardsall, Executive Chairman

Andrew Grosse, Exploration & Technical Director

Evolution Securities (+44 20 7071 4300)

Rob Collins & Chris Sim

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.