Constance Well to be Drilled in Late August/Early September

Sterling has been informed by the operator that the Constance exploratory well on Block 21/23a in the UK Central North Sea, will now start late August or early September. Previously the well was planned for November. Sterling currently holds a 35-percent interest in Constance, which lies within Block 21/23a, to the north and east of the Sheryl discovery. The Constance well will drill a large channel/canyon feature and target the Eocene Tay sands which produce in the adjacent Pict field. Well results would be expected in approximately four to six weeks after spudding depending on testing requirements. Sterling will be providing an update on its other activities concurrent with the release of the Company's second quarter results in mid-August.
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