Placing Announcement

Sterling Energy PLC
15 November 2007

 NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN


15 November 2007

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

                         Placing to RAISE £11.0 MILLION


Sterling (symbol: SEY), an AIM listed independent oil & gas exploration and
production company with interests in the Gulf of Mexico and Africa and the
Middle East, is pleased to announce that it has raised approximately £11.0
million gross of expenses (US$22.3m) through a placing of 78,510,027 ordinary
shares of 1p each ('Placing Shares') at 14p per Placing Share (the 'Placing').
The net proceeds of the Placing will be used to fund the initial costs relating
to the Production Sharing Contract ('PSC') entered into with the Kurdistan
Regional Government of Iraq ('KRG') for the Sangaw North exploration block 
('Block'), announced on 12 November 2007.


The PSC


The Block, which covers an area of 492 sq km is located approximately 140 km
south east of Erbil and 50 km south west of Suleimaniah. It lies in a highly
prospective area around 50 km south east of the giant Kirkuk oil field and on
trend with the major Taq Taq and Chemchemal oil and gas discoveries. The Block
itself contains a large surface anticline with the possibility of multiple
reservoir targets, in common with many existing fields in the area, providing
strong encouragement for exploration success.

The terms of the PSC are in accordance with the terms and conditions published
by the KRG. Sterling has 100% interest in the PSC subject to back in rights for
the KRG and local industry partners.

The PSC has an initial 3 year exploration period during which Sterling plans to
acquire approximately 200 km of 2D seismic and drill at least one exploration
well.  The Company will start work immediately, having already established an
office in Erbil earlier this year. It is anticipated that expenditure over this
period, including initial costs, could be in the order of US$35 million.

Sterling's signature of the PSC, together with other recently signed agreements
with the KRG, brings the number of international oil companies now working in
Kurdistan to 25.



Operations Update

In an operating update published on 12 November 2007, Sterling announced that Q3
net group production averaged c. 6,100 boepd, an increase of 25% over the first
half.  The Company also confirmed the imminent start of drilling offshore Gabon
on the 5-20 million bbls Admiral prospect in which it has a c. 28% interest, as
well as continued drilling in the USA and the start of Phase 2b development work
in Mauritania in early 2008.


The Placing Shares

The Placing Shares will rank pari passu in all respects with the existing
ordinary shares of 1p each and will represent 4.76% of the Company's enlarged
issued share capital. Application has been made to the London Stock Exchange for
the Placing Shares to be admitted to trading on AIM. It is expected that
admission will become effective and dealings in the Placing Shares will commence
on AIM on Tuesday, 20 November 2007 ('Admission').

Following Admission the Company will have 1,648,710,585 ordinary shares of 1p
each in issue.

Commenting today, Harry Wilson, Chief Executive of Sterling Energy Plc, said:

'The proceeds of this Placing will fund the initial costs on the Sangaw North
exploration block, which is the latest addition to our growing portfolio of
near-term drilling projects. The upside in these exploration targets, when
combined with our producing US and Mauritanian assets, positions the Company
well for the future.'



Enquiries



Sterling Energy Plc (020 7405 4133)          Web site: www.sterlingenergyplc.com

Harry Wilson
Graeme Thomson

Evolution Securities (020 7071 4300)
Rob Collins
Tim Redfern

Citigate Dewe Rogerson (020 7638 9571)
Media enquiries: Martin Jackson
Analyst enquiries: Kate Delahunty





This announcement has been issued by, and is the sole responsibility of,
Sterling Energy plc.

These written materials are not an offer of securities for sale in the United
States.  Securities may not be offered or sold in the United States absent
registration under the US Securities Act of 1933 (the 'US Securities Act') or an
exemption there from.  Sterling Energy plc has not registered and does not
intend to register any of the Placing Shares under the US Securities Act.  The
Placing Shares will not be offered or sold to the public in the United States.

Evolution Securities Limited is acting exclusively for Sterling and for no one
else in connection with the Placing and will not be responsible to anyone other
than Sterling for providing the protections afforded to the customers of
Evolution Securities Limited or for providing advice in relation to the Placing
or any transaction or arrangement referred to herein.

The release, publication or distribution of this announcement into certain
jurisdictions other than the UK may be restricted by law and therefore persons
in such jurisdictions into which this announcement is released, published or
distributed should inform themselves about and observe any such restrictions.
Any failure to comply with any such restrictions may constitute a violation of
the securities laws or regulation of such jurisdictions.

This announcement is not for release, publication, or distribution, directly or
indirectly, in whole or in part, in or into Australia, Canada, Japan, or the
United States and does not constitute, or form part of, an offer or the
solicitation of an offer, or inducement, or invitation to subscribe for, buy,
underwrite or otherwise acquire, any rights, shares, or other securities, nor
the solicitation of any vote or approval in any jurisdiction, nor shall there be
any sale, issue or transfer of shares in the Company in any jurisdiction in
contravention of applicable law.

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. No statement in this
announcement is intended to be a profit forecast or to imply that the earnings
of the Company for the current year or future years will necessarily match or
exceed the historical or published earnings of the Company.







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