Sterling License Still Suspeded Over Border Dispute

Sterling reported that the financial obligations and work program for the Ntem concession area (100% WI) are currently suspended owing to a dispute between Cameroon and Equatorial Guinea over their maritime borders. Both countries are working together to resolve the dispute.

Sterling had planned to farm-out this license for drilling and it continues to attract a good level of industry interest. However the award in late 2004 by Equatorial Guinea of a license to the South of Ntem overlapping up to 15% of the license has delayed this drilling plan until the situation is resolved. Sterling remains committed to assisting in the resolution of the dispute in the interests of all parties.

A number of discoveries have been made in the region recently and this has only served to enhance its prospectivity.