Sterling Energy has expanded aggressively and now has interests in the Gulf of Mexico and Africa. I'll fill in the detail when I have the time but I feel the need to post now.

I have watched this share and researched it for three months. BANG!! It's going to take off, mark my words. IMHO

It bought (Fog) which was Fusion Oil & incorparated them into one company back in Feb but the share price has been more or less static since been very little movment at all.

PARKIN

Your right short term on price but the 17th marked the low end of that sideways movement. Lost 0.5p I don't think this type of opportunity to get in can be missed. Much more info, discussion to be had but welcome....

This is a wait and see one.

Whilst it is apparent that Sterling has made a brilliant coup with the hostile take over or Fusion Oil bought a a bargain price, the aquisition of gas fields in the Gulf of Mexico, we now are waiting for the latest promised update, (which was due in early March), as to the Companies current status, post merger.

The recent dip in stock markets was not a good time to release this so it should come soon.

Their results are due in April, the 200 day am in June, may be by then, we will know more.

IMHO they are still showing one third of their true value according to the share price currently 12 pence, so there is definitely progress to be made there.

Further to my last, the inevitable speculation:-

As Shell have today admitted yet further reductions in their known reserves, I foresee moves by Shell to make up the deficit.

The option is to do nothing and for them to sink into the abyss.

I would not be at all surprised to see them or one of their subsiduaries (i.e Enterprise Oil), making a grab for the smaller minnows with proven resorces.

Sterling fit that description, as do Hardman Resorces, Woodside Plc the list goes on.

Never mind the expected rise in the price, there may be a bonus for the share holders of any of these minnows.

Well how is that for timing I finally took the plunge this morning.

Sterling Energy PLC
18 March 2004

STERLING ENERGY PLC CORPORATE UPDATE

18th March 2004, Sterling Energy plc ('Sterling') is pleased to report the
following update.

39.5 MILLION FUSION OFFER

Since the offer by Sterling for the whole of Fusion Oil & Gas plc ('Fusion') was
declared unconditional in early December 2003, there have been very encouraging
developments. In particular, in Mauritania, there has been:

- the success of the Tiof #1 discovery well in PSC B and the subsequent
Tiof-West #1 discovery well drilled in December 2003. Preliminary estimates
indicate oil reserves in excess of 200 million barrels;

- the declaration of commerciality on the Chinguetti field in PSC B and
the upgrading of its reserves to the proven and probable category by the
operator. A development plan is being submitted to the authorities and
first production is expected by the end of 2005. Our expectation is for oil
reserves of not less than 120 million barrels;

- the sale for US$132 million announced in February by Hardman Resources
Ltd of interests in two contract areas where Sterling holds interests. The
sale price was over 4 times that paid by Hardman when it bought the
interests from ENI-Agip in late 2003, and confirms the significant increase
in value following the Tiof drilling results.

These developments have important implications for the prospectivity of the
contract areas and for the expected activity level on the licenses. The
acquisition of further 3D seismic is planned, with an extensive two rig drilling
programme in the second half of 2004/early 2005. Following the completion of the
transactions with Premier Oil plc ('Premier'), Sterling will have no exposure to
any of these costs, and will have a production royalty over 3% of reserves in
PSC A & 6% in PSC B. At an oil price of US$25 - 28 per barrel, the royalty
payment will be US$2.25 per barrel produced.

Elsewhere, in the AGC (Agence de Gestion et de Cooperation) area between Senegal
and Guinea Bissau, formal confirmation is awaited of a one-year extension to the
Croix du Sud permit. This has been sought to allow the completion of the
evaluation of the 3D seismic, which was acquired in 2003, and to then consider
drilling options.

In Guinea Bissau, news is also awaited on the Sinapa #2 well which is currently
being drilled by Premier. The Group has an option to take a 5% gross interest
(3.50% net after all back-ins) in the block within 60 days of the well being
completed. Premier is expected to drill a second well on the adjacent Esperanca
block later in the year on the same terms.

A new management structure has been put in place in Fusion since the year-end
and new recruits have been added as part of the restructuring. Sterling is
committed to building its Perth office as the technical and commercial centre
for the West African operations.

US$39.5 MILLION OSPREY PRODUCTION PURCHASE

On 26th February 2004, Sterling completed the purchase of interests in a series
of wells in the Gulf of Mexico and their related pipelines and other
infrastructure. As a result, for the first time, Sterling has become an
operator. Since this purchase was completed, the Group's production has more
than doubled to around 12 million cubic feet of gas equivalent per day (mmcfge/
d). These interests have also increased the Group's US proven and probable
reserves which Sterling estimates to be over 40 billion cubic feet gas
equivalent (bcfge) from their end of 2003 total of over 18 bcfge. Independent
engineers are currently reviewing these reserve figures. Sterling is already
preparing plans to access the additional potential of the fields; this is
expected to include development wells. Early information is encouraging.

The Osprey purchase was funded by a new bank loan (now fully drawn at
US$27.5million) and from internal cash resources. The loan, which is repayable
on 30th June 2006, contains a number of normal conditions such as a twice yearly
borrowing base review and limitation on cash usage elsewhere in the Group.

Our Houston office is being expanded to take on the new operatorship role. We
will also look to take over management of our other fields where prudent and
operationally efficient.

2003 RESULTS TIMING AND OTHER FINANCIAL MATTERS

Sterling expects to announce its preliminary results for 2003 in the second half
of April, with the Annual Report being published in early May.

The 2003 results are expected to show a considerable improvement over those for
2002, despite the strength of sterling relative to the US dollar in the second
half. Unaudited production revenues for 2003 were approximately US$9.1million on
production of some 1.75 bcfge at an average price of some US$5.22/mcfge. Average
production increased from 3 mmcfe/d at the start of 2003 to an average of 5.6
mmcfe/d for the final quarter.

Through the use of forward contracts, Sterling has sold forward some US$13.4
million of gas into 2004 and early 2005 at an average price of US$5.60/mcf as
part of its risk management programme.

Current Group cash balances are approximately 5 million, which will be used to
meet existing requirements.

In order to provide appropriate incentives to staff, approximately 18 million
share options have been approved for issue at the mid-market price at the date
of allotment. After the further admission of 4,055,032 Sterling ordinary shares
in connection with the Fusion offer, the total issued share capital is now
817,419,433.

OUTLOOK

The Sterling Board is highly encouraged by the Group's significant advances over
the last few months. Recent positive operational developments, the Group's
growing skill base and profile, together with sustained high energy prices, have
important implications for the future level of activity on the assets and for
their sustained enhancement.

For further information contact:

Harry Wilson, Chief Executive, Sterling Energy plc: 01582 462 121
Graeme Thomson, Finance Director, Sterling Energy plc: 01582 462 121

Allan Piper, First City Financial Public Relations: 020 7436 7486
07736 064 982
Chris Callaway, Evolution Beeson Gregory: 020 7071 4300

Prophet - Congratulations os a good buy today.

These shares must now move towards the 32-38 pence mark that I estimate for them.

This company has gone from a small loss last year to a definite profit this year.

Seems I was wrong about the prelims........... April not June!

Not so long to wait.

Crikey Prophet, fantastic timing, well done!

Rgds

PTH

Hello experts..................what do you think?

Hello ringos_tar_2000, An opinion. If I could only back one Management to get it right, it would be this one. They have a superb track record and it,s a winner. Rgds. jnk

Well with good volume today we might of expected a rise in the price. Roll on further comment in the press and we will see some action on Monday.

Was looking at many oil companies, all have shown an increase at least 70% in their share price, except this one which seems to have lagged. I feel it is due for a move up which can happen b4 their finacial result. Lets hope.

has DANA (DNX) shown a 70% increase and over what sort of time-scale are we talking? I do hope you are correct with Sterling.

since Dec 03.

xmortal,

Sterling MAY be an almost unique spreadbetting opportunity at the moment, IMHO.

There does seem to be a very limited possible downside, and a decent chance of a fairly good upside, so I may well take a long next week with a 3 point stop loss, surely that's a bet with a low risk/high return oportunity?

the rising price of oil must also benefit SEY at some point.

Small price rise today on good volume signals upward movement into a new trading range. IMHO

Prophet,

Agreed, and with the new tax year we may see money moving back into stocks such as SEY IMHO.

Brillant volumes and some very large buys today. It's looking very good. IMHO

Prophet,

Yes starting to look positive now.

We need some decent volume to confirm the rise to new levels, so keep an eye out in the next few days!!!

I would be very wary of their rapid expansion and short term costs.
good luck though to all

Good days trading today 8 million plus volume.

Price tipped over the 14 pence mark.

As I recall the results for the year are due next week.

Seems to me the City are expecting good news on these!

Lets hope they start the hike towards the 30 pence mark.

The Company's p/e shows that is where it should be.

Valuation using Sterling Energy plc 's current multiple (P/E):

Fiscal Year Est Low/High Price Range Avg. Est. Price % Change for Average
2003 11.25-11.25 11.25 - 19.64%
2004 30.00-30.00 30.00 114.29%
http://uk.moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=sey