Sterling reports first quarter 2008 results and looks forward to active second half

CALGARY, May 15 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG.V).

Following its recent drilling success in 2007, Sterling Resources has been focused on progressing the development of its two offshore gas projects, Breagh in the UK Southern North Sea and the Doina trend in the Romanian Black Sea. Long lead items have been secured and the necessary site surveys and environmental studies for further drilling have been initiated. In addition, equity financings were completed to enable Sterling to commence its most ambitious drilling program in the second half of the year.

    
    First quarter financial highlights for 2008 included:

    -   net loss was $44,104 ($0.00 per common share - basis and diluted)
        compared to $419,712 ($0.00 per common share - basis and diluted) for
        Q1 2007;

    -   net capital expenditures were $5,299,551 compared to $2,352,426 for
        Q1 2007; and

    -   working capital was $57,791,149 compared to $10,858,095 at
        December 31, 2007.

    Key operational achievements for Q1 2008 include:

    -   the successful completion and testing of the Doina Sister well
        (Sterling 65 percent after farm-out) on the Midia Block offshore
        Romania. On test, the well flowed at stabilized rates of up to
        19.2 MMscf/d; and

    -   the contracting of the ENSCO 70 jack up rig, which is scheduled to
        commence a multi-well drilling program in the UK Southern North Sea
        in early July 2008, including two wells at Breagh (Sterling
        45 percent), and contracting the Sedco 704 semi-submersible rig to
        drill the Cladhan Prospect on Block 210/29a (Sterling 39.9 percent
        after farmout) in the UK Northern North Sea in the third quarter.

    Other corporate activities for Q1 2008 included:

    -   the completion of a non-brokered private placement with Royal Bank
        Project Investment Limited, a subsidiary of The Royal Bank of
        Scotland, of 7,109,900 common shares at a subscription price of $2.00
        per share, for net proceeds of $14.2-million; and

    -   the completion of a bought deal financing of 16,000,000 common shares
        at $2.50 per share with a syndicate of underwriters, for net proceeds
        of $37.5-million.
    

Mr. Stewart Gibson, CEO, said "During the first quarter of 2008, we have been focused on putting in place the internal infrastructure required to support an expanded level of activity as well as securing rig and other contracts in anticipation of our aggressive 11 well drilling campaign for 2008. The two equity issues in early 2008 will provide the financial flexibility to further these plans and we are also pursuing additional financing arrangements."

Forward Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Sterling's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. All statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete wells, and production facilities. These statements are based on assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. The forward-looking statements or information contained in this press release are made as of the date hereof and Sterling undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Sterling Resources Ltd. is an international oil and gas company headquartered in Calgary, Alberta.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.

Contacts

visit www.sterling-resources.com or contact: Stewart G. Gibson
Chief Executive Officer
Phone: 44-133082-6717
Mobile: 44-7768-042219
stewart@sterling-resources.co.uk

or Ian Hornby-Smith
Chief Financial Officer
Phone: (403) 215-9264
Fax: (403) 215-9279
ian@sterling-resources.com