Offer Update

Sterling Energy PLC 20 February 2004 Sterling Energy plc 20 February 2004 Not for release, publication or distribution in, into or from the United States, Canada, Australia or Japan. Sterling Energy plc Compulsory acquisition of outstanding Fusion shares On 10 December 2003 the board of Sterling announced that its offer for the whole of the issued and to be issued share capital of Fusion Oil & Gas plc had become unconditional in all respects. As at 3.00 p.m. on 19 February 2004, Sterling either owned or had received valid acceptances for the Offer in respect of an aggregate of 100,790,343 Fusion Shares, representing approximately 98.18 per cent. of Fusion's issued ordinary share capital. Consequently, Sterling is today implementing the procedure under sections 428 to 430F of the Companies Act 1985, as amended, to acquire compulsorily all of the outstanding Fusion Shares which it has not already acquired, contracted to acquire or in respect of which it has not already received valid acceptances The Offer will remain open for acceptance until further notice. Fusion Shareholders who have not yet accepted the Offer are urged to do so as soon as possible. Forms of Acceptance not yet returned should be completed and returned in accordance with the instructions set out in the Offer Document and the Form of Acceptance as soon as possible. Additional Forms of Acceptance may be obtained from Capita IRG, telephone 0870 162 3100, or if calling from outside the UK +44 20 8639 2157. Words and expressions defined in the offer document from Sterling to Fusion Shareholders dated 1 October 2003 and the circulars from Sterling to Fusion Shareholders dated 18 October 2003 and 21 November 2003 respectively shall have the same meaning in this announcement. Evolution Beeson Gregory, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Sterling and no one else in connection with the Offer and other matters described herein will not be responsible to anyone other than Sterling for providing the protections afforded to customers of Evolution Beeson Gregory or for giving advice in relation to the Offer or any other matter described in this announcement. This information is provided by RNS The company news service from the London Stock Exchange