Sterling say cash flow will increase by 400% in 2006

These are Sterlings assets:-

Location: Texas, Federal Waters
Area: 50 km sq (12,380 acres)
Sterling Equity: 7.5% over-riding royalty, 50% to 100% WI; 42.3% to 83.33% NRI

Sterling Operates High Island 52 Field which is one of the oldest gas fields in offshore Texas. Ongoing mapping has identified multiple drilling opportunities, fault separated from proven production, as well as deeper exploratory potential. A more recent 75+ BCFE deep discovery was made in the NE/4 of the block in which Sterling retains a 7.5% over-riding royalty interest which provides the bulk of Sterlings production reserves in High Island.

High Island Blocks 52, 53
Sterling Energy has a 50% Working Interest and is the operator. The fields productive intervals are Middle to Lower Miocene reservoirs. Cumulative production from October 1959 is 75+ BCF and 2.5 MMBO, with 1 well currently producing. The most recent discovery in the NE/4 has produced 22+ BCFE from 2 wells.

High Island Block A-94
Sterling Energy has a 100% Working Interest and is the operator. The block was awarded in 2003 to Sterling Energy as high bidder at OCS sale 187. This exploration lease has a 5 year primary term. Sterling acquired HI A94 to explore for deep gas potential. This block sits in an area of the Gulf that currently has no 3-D seismic data coverage.

These are not:-

"Pan Andean Resources PLC said the Neff-Geissen No 1 well
onshore Texas has been plugged as a reservoir encountered also contained water.
It also said Sterling Exploration & Production Co, who will pump and pipe
oil from Pan Andean's High Island 30 Platform in the Gulf of Mexico........."