Sterling provides operations update

    CALGARY, Aug. 27 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)

    Sterling Resources Ltd. provides an operations update on its offshore UK
and Romanian operations.

    Constance Exploration Well, UK Central North Sea
    ------------------------------------------------

    Following drilling of the Constance 'A' and 'B' target locations to
measured depths of 7,500 feet and 6,700 feet respectively, the 21/23a-10z
wellbore is currently being plugged and abandoned. Both the original 'B' and
sidetrack 'A' locations encountered Eocene Tay sandstone intervals which are
water bearing with only minor hydrocarbon potential noted at the top of the
section at the 'B' location. Sterling has a 35-percent interest in the
Constance well.

    Breagh Appraisal Well, UK Southern North Sea
    --------------------------------------------

    Sterling has been informed by the operator of the ENSCO 85 rig that the
present estimate for the rig arriving at the Breagh location is during the
third week in September. The Breagh appraisal well is located on Block 42/13
in the Southern North Sea. Sterling has a 50-percent working interest and is
the operator of this well. As a result of farmout arrangements, Sterling will
essentially be carried for the dry-hole costs of the well.

    Offshore Romania
    ----------------

    Offshore Romania, for the Midia and Pelican Blocks, the National Agency
for Mineral Resources (NAMR) have signed an agreement to modify the existing
Exploration and Production Sharing Agreement (EPSA) to a tax royalty
concession agreement which includes fiscal terms to match the current
Petroleum Law. This allows Sterling and its potential partners to continue
moving towards farmout arrangements and drilling plans for these blocks.

    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.

    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.

    %SEDAR: 00002072E

For further information:

For further information: visit www.sterling-resources.com or contact
either: Ken J. Croft, Investor Relations, Phone: (403) 215-9265, Fax: (403)
215-9279, ken@sterling-resources.com or Stewart G. Gibson, Chief Executive
Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219,
stewart@sterling-resources.co.uk