INTRODUCTION

During 2010, Sterling will focus on major offshore gas developments which will culminate in the production from four gas discoveries and the development of two new gas export systems offshore the UK and Romania. First production from these developments and related significant cashflow will start in 2012.

Sterling’s strategy is to grow by successful exploration and in addition to the above developments, we have an active 8 well exploration and appraisal program. The schedule, as envisioned in December 2009, is shown on the diagram below.

2010 DRILLING SCHEDULE

In line with the other part of Sterling’s strategy, the cost exposure to the pre discovery phase is managed by farming down and several of the wells shown above are either fully carried or partially carried in terms of the cost to Sterling.