Sterling (AIM: SEY), the independent oil and gas exploration and production company

with interests in the Middle East and Africa, provides the following update for the Sterling

operated Sangaw North block in Kurdistan (53.33% working interest).

Since the update on 6 January 2011, a further 280 metres of drill pipe have been

recovered from the Sangaw North No.1 well and, with the top of the remaining drill pipe

now at approximately 1,950 metres, further progress in recovering drill pipe has not been

possible.

The well will now be side-tracked and re-drilled to approximately 3,300 metres, the depth

just above where the previous influx of gas was recorded. At this depth, casing will be run

and cemented prior to drilling deeper into the potential reservoir section that is believed to

contain hydrocarbons.

The Company estimates that re-drilling the remaining section to the planned casing point

will take approximately 45 days.