Sterling, the AIM listed independent oil and gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, today announces that it has conditionally placed 675,000,000 new ordinary shares ("Ordinary Shares") of one pence each (the "Placing Shares") at 2 pence per share (the "Placing Price") to raise £13.5 million (before expenses) (the "Placing").

Summary of the Placing:

• Placing of 675,000,000 new Ordinary Shares at a placing price of 2 pence to raise £13.5 million (before expenses).
• Proceeds of the Placing, together with the cash the Company will receive from its operating activities, to be used to fulfil a number of near term work commitments and strengthen the working capital position of the Group.
• Placing Price represents a discount of 33.3 per cent. to the price of the last reported trade on 29 September 2008.

A circular, incorporating the Company’s interim results for the six months ending 30 June 2008 (the “Circular”), containing a notice of an extraordinary general meeting of the Company convened for 9.00 a.m. on 17 October 2008, will be sent to shareholders of the Company shortly outlining the terms of the Placing and seeking Shareholder approval to, inter alia, enable the Directors to allot the Placing Shares in connection with the Placing.

For further information contact:

Sterling Energy plc (+44 207 405 4133)
Graeme Thomson, Chief Executive
Jon Cooper, Chief Financial Officer

Evolution Securities (+44 207 071 4300)
Rob Collins
Tim Redfern
Citigate Dewe Rogerson (+44 207 638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: Emma Woollaston