Exercise of Warrants

Sterling Energy PLC
13 May 2003

               Sterling Energy plc ('the Company' or 'Sterling')

   Exercise of 20,726,152 warrants raising approximately £1.2 million for the
                                    Company

Sterling Energy plc is pleased to announce that a total of 20,726,152 warrants
entitling holders to subscribe for new ordinary shares ('Warrants') have been
exercised, raising approximately £1.2 million, net of expenses, for the Company.
  Of these, 20,400,402 were placed by Evolution Beeson Gregory Limited with
institutional and other investors at 6.5p.  The balance were exercised and
retained by existing Warrant holders.  Following the Placing 4,028,848 Warrants
will continue to be exercisable at 6p per share up to their expiry on 30 June,
2003.

The Company has applied for the new ordinary shares to be issued as a result of
the exercise of the Warrants to be admitted to trading on the Alternative
Investment Market of the London Stock Exchange and dealings are expected to
commence on 14 May, 2003 ('Admission').  Following Admission, the issued
ordinary share capital of the Company will be 374,518,534 shares.

E.J. Butler, R.A. O'Toole, N.A. Quinton, G.P. Thomson, P.K. Wilde and H.G.
Wilson, all directors of Sterling, disposed of  their Warrants or interests in
Warrants, as follows:

Director                                              Number of Warrants

E.J. Butler                                           125,000
R.A. O'Toole                                          1,664,799
N.A. Quinton (Note 1)                                 1,738,134
G.P. Thomson                                          1,241,997
P.K. Wilde                                            161,000
H.G. Wilson (Note 2)                                  3,683,014

Note 1: includes 598,662 Warrants held by a family owned company

Note 2: includes 1,284,541 Warrants held by a company in which the director has
a 26% interest

Harry Wilson, Chief Executive, commented:

'I am delighted that both existing and new investors have demonstrated their
support for the Company.  The funds raised will help to continue the excellent
progress made since flotation in October, 2002.'

Enquiries:

Harry Wilson, Sterling Energy plc                               01582 462 121
Graeme Thomson, Sterling Energy plc                             01582 462 121

Chris Callaway, Evolution Beeson Gregory                        020 7488 4040

Sterling Energy plc website: www.sterlingenergyplc.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange