Sterling Energy Resources, Inc. is an independent exploration and production company focused on the acquisition, exploration and development of oil and natural gas from its reserves in the Permian Basin of Texas, Forest City Basin of Kansas and the Sacramento and San Joaquin Basins of California.

Sterling Energy Resources, Inc. has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The singular purpose of this filing is to seek judicial review of the outstanding secured debt originally held by Columbian Bank & Trust and subsequently taken over by the FDIC after the failure of Columbian Bank in August 2008. The company feels actions taken by the FDIC regarding the recent divestment of the secured debt to a third-party bank has not only harmed the company but may in fact be improper. The company will continue to manage its oil properties and operate its business in the ordinary course throughout the Chapter 11 process while it seeks judicial review of the above mentioned transactions and seeks confirmation of its reorganization plan under the jurisdiction of the Bankruptcy court.