Philippines Gas Assets Sale

Sterling Energy PLC 25 April 2005 25 APRIL 2005 STERLING ENERGY PLC SALE OF PHILIPPINES GAS ASSETS TO JOINT VENTURE Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration and production company, today announces the sale of its GSEC 101 license to Forum Energy Plc ('Forum Energy'), in return for an equity interest of 23.0% in Forum Energy. Forum Energy is a joint venture company specially created by Sterling Energy and Forum Energy Corporation, a NASD (OTCBB) listed energy group, to amalgamate and manage the energy assets of both companies in the Philippines region. This is subject to approval by the shareholders of FEC of which over 80% have already undertaken to vote in favour at the EGM to be held on 18 May 2005. Mr Harry Wilson, Chief Executive of Sterling Energy and Mr Graeme Thomson, Finance Director of Sterling Energy, have been appointed non-executive directors of Forum Energy. The GSEC 101 license was acquired by Sterling Energy in 2002 and lies offshore Palawan in the South China Sea, Philippines, an area known as Reed Bank. The license contains the Sampaguita gas discovery which has flowed gas during test and over which it is planned to shoot a seismic survey shortly. In addition, Forum Energy will have interests in oil & gas assets in the Northern Cebu Island and coal operating contracts in Central and South Cebu Island. A pre-IPO funding of £3.35 million has also been conditionally completed valuing the Company at £17.4 million. On this basis, Sterling's equity holding in Forum will be valued at £4 million. It is intended that Forum Energy will seek admission to the Alternative Investment Market, operated by the London Stock Exchange, later in 2005. Following the disposal, Sterling Energy will be focused on its core areas, the Gulf of Mexico and Africa. Harry Wilson, Chief Executive of Sterling Energy Plc, said: 'The disposal of Reed Bank will allow Sterling to focus its resources on its core activities in the Gulf of Mexico and Africa, while retaining exposure to the upside potential of a more balanced Philippine energy asset portfolio which has a great deal of upside.' 'Sterling's exploration effort is concentrated on its African assets where an active drilling programme is ongoing. In particular, it has interests in wells in Mauritania, Gabon and Guinea Bissau at virtually no cost to itself, and a range of other exploration/appraisal opportunities. Sterling is also intent on substantially increasing production and cashflow in the Gulf of Mexico.' Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.com Harry Wilson Graeme Thomson Citigate Dewe Rogerson (020 7638 9571) Media: Martin Jackson / Rachel Lankester Analyst: Nina Soon Evolution Securities (020 7071 4300) Rob Collins / Henry Turcan This information is provided by RNS The company news service from the London Stock Exchange