Activity Update

Sterling Energy PLC 13 September 2005 13 September 2005 STERLING ENERGY PLC ('Sterling' or 'the company') ACTIVITY UPDATE Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration and production company, today provides an update of its global and corporate activities. Gulf of Mexico The company has been only marginally impacted by Hurricane Katrina. One platform, Eugene Island 268 which represents approximately 20% of Sterling's production, was shut down for 5 days, and resumed production on 2 September 2005. The company's facilities in the western Gulf of Mexico were not affected and production has continued without interruption. Mauritania Following the recent change of government in Mauritania, Sterling is able to report that it is continuing its operations there as normal. The company has held meetings with the new Minister for Energy and Petroleum and is confident that it will be able to build on its existing contract with the government relating to the offshore Chinguetti development, expected on-stream in the first quarter of 2006. Gabon Sterling is pleased to announce that the company has signed a Technical Evaluation Agreement for the Ibekelia licence. The agreement has been signed with the Gabonese government and Sterling (40% interest & operator) The agreement covers a 673 km2 area which is contiguous with the Gamba and Olowi oil fields and Sterling's existing Themis Marin and Iris Marin licences. The evaluation term is 12 months at the end of which there is an option to convert to a full Production Sharing Agreement. Having reached a depth of 2035 m, the Iris Iboga Marin No 1 well penetrated over 30 metres of excellent reservoir-quality sub-salt Gamba sandstones but unfortunately these were water bearing. Accordingly the well is now being plugged and abandoned. A further exploration well is scheduled in the Themis Marin license commencing in 1st quarter of 2006. Sterling will again be carried for most of its 20.57% working interest and will pay only 2.57% of the costs. Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.com Harry Wilson Graeme Thomson Citigate Dewe Rogerson (020 7638 9571) Media: Rachel Lankester/George Cazenove Analysts: 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