Statement re. Press Comment

Sterling Energy PLC 25 October 2004 Sterling Energy plc ('Sterling' or the 'Company') Statement re. Press Speculation The Board of Sterling notes yesterday's press speculation about a possible substantial transaction and the Company's share price movement today. It confirms that it is in advanced discussions concerning an investment in West Africa. A further announcement will be made when appropriate. Enquiries: Rob Collins, Evolution Securities Limited: 020 7071 4300 Allan Piper, First City Financial Public Relations: 020 7436 7486 This information is provided by RNS The company news service from the London Stock Exchange