Sterling Energy Plc

NEW, London-based Sterling Energy Plc (London AIM: SEY) has retained BMO Capital Markets to sell its U.S. interests primarily onshore Gulf Coast and shallow-water Gulf of Mexico. Sterling's U.S. operations include lowrisk development and exploration projects. Proved plus probable reserves are 111 billion cubic feet equivalent (18.5 million barrels of oil equivalent). Proved reserves constitute approximately 65%. Possible reserves are 70 billion equivalent (11.6 million barrels of oil equivalent). U.S. net production is approximately 32 million cubic feet equivalent (5,333 barrels of oil equivalent). In March Sterling made a gas discovery from Marlin #1, which has since come on stream at initial rates of more than 4.5 million cubic feet equivalent (750 barrels of oil equivalent) net. An offset to this well is scheduled to be drilled in May. Other projects in South Texas, Southeast Texas and state waters offshore Texas, some of which have recently been farmed out, will be drilled in the near-term. Sterling will focus on higher impact exploration prospectsin Madagascar, Kurdistan, Gabon, AGC (a joint exploration zone between Senegal and Guinea Bissau) and Cameroon. Sterling chief executive Graeme Thomson says, "We believe that this is a very opportune time to sell our U.S. business, against a background of growing production and rising gas prices. The sale will leave Sterling financially well positioned, adequately resourced and more sharply focused on high impact 'company making' exploration prospects." Contact Stewart Frankel, 713-546- 9704.