Drilling Report

Sterling Energy PLC 22 June 2005 22 JUNE 2005 STERLING ENERGY PLC ('Sterling' or the 'Company') MAURITANIA OFFSHORE DRILLING UPDATE Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration and production company, note that the following announcement was made earlier today by Woodside Petroleum: Woodside Mauritania Pty Ltd, a wholly-owned subsidiary of Woodside Petroleum Ltd., reports that the first three exploration locations for its 2005 Mauritanian exploration drilling sequence have been selected. Two of the wells, Sotto and Colin, will target relatively high risk but potentially high reward prospects in PSC Area A. The third well, Espadon, is targeting a medium risk, moderate reward prospect close to the Tiof Discovery in PSC Area B. It is planned to begin drilling these wells in late July 2005 using the Stena Tay drill rig. A further three wells are likely before the end of the year, including one in PSC Area C6. Subsequent announcements will be made concerning these wells. The West Navigator drill ship continues working on Chinguetti development wells. Woodside does not plan to issue announcements regarding operations on Chinguetti development wells, but will do so if necessary to comply with its continuous disclosure obligations under the ASX Listing Rules. Harry Wilson, Chief Executive of Sterling Energy Plc, said: 'This is further good news from Mauritania. The commencement of a new exploration drilling sequence in the PSC Areas A and B extends Sterling's upside potential beyond the already successful Chinguetti development. Production from Chinguetti is on target for Q1 2006 and will bring a step change in our cash flow.' Oilbarrel Conference On 21 June 2005, Sterling participated in the oilbarrel investor conference in London. Sterling's presentation to the conference is available on the Company's website - www.sterlingenergyplc.com. Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.com Harry Wilson Graeme Thomson Citigate Dewe Rogerson (020 7638 9571) Martin Jackson Nina Soon Evolution Securities (020 7071 4300) Rob Collins / Henry Turcan Note to Editors Participating Interests in the Chinguetti Exploitation Perimeter and PSC areas are: Company Chinguetti PSC PSC PSC Development Area A Area B Area C6 Woodside group companies (Operator) 47.38448% 53.846% 53.846% 37.578% Hardman group companies 19.00800% 24.3% 21.6% 22.422% Groupe Project Chinguetti 12.00000% -- -- -- BG group companies 10.23440% 13.084% 11.63% -- Premier group companies 8.12328% -- 9.231% -- ROC Oil group companies 3.24984% 4.155% 3.693% 5.0% Fusion group companies -- 4.615%* -- -- Petronas Carigali Overseas Sdn Bhd -- -- -- 35.0% Sterling Production Royalty Interest 5.28% 2.64% 5.28% - * Held in trust for Premier Oil This information is provided by RNS The company news service from the London Stock Exchange