Korean National Oil Company Assigned 20% Interest in Sangaw North Block in Kurdistan

Wednesday, June 25, 2008

Sterling Energy, is an AiM listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East.

Sterling notes today’s announcement by the Kurdistan Regional Government of Iraq (“KRG”) that the Korean National Oil Company (“KNOC”) has been nominated by the KRG to receive the Third Party Interest allocation of 20% in the Sangaw North Block.

Sterling entered into a Production Sharing Contract (“PSC”) with the KRG in respect of the Sangaw North exploration Block, Kurdistan on 10 November 2007. As previously announced, Sterling’s initial 100% interest in the PSC was subject to back-in rights for the KRG and a Third Party. Following the allocation of the Third Party interest to KNOC, Sterling’s interest in the Block will be 80%.

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