IRISH ENTREPRENEUR Denis O'Brien announced yesterday that he has acquired more shares in Sterling Energy, the AIM-quoted oil and gas exploration and production group.

Mr O'Brien purchased 741,732 shares in Sterling Energy on November 14th for 3.5 pence each. The shares were acquired by Baycliffe Ltd, an investment vehicle controlled by Mr O'Brien.

This share buying has taken his stake in the company to 14.07 per cent. Mr O'Brien has been buying shares in Sterling Energy over the past 14 months, paying up to 13 pence a share for them.

At one point he held more than 15 per cent of Sterling Energy's stock, but his holding was diluted recently by a £13 million share placing, which offered shares at just 2 pence each and was oversubscribed.

As with many other quoted exploration stocks, Sterling Energy's share price has declined significantly in value over the past seven months due to economic concerns and a softening in oil prices.

In May the shares traded at 14 pence in London, but they have fallen in value steadily over the intervening period.

The company's market capitalisation is now just £86.5 million, roughly half its level of 12 months ago.

On November 4th Sterling Energy said it had received a "very early stage" offer from a third party that could lead to an offer. The third party was not identified but the offer is thought to have been received by an industry player.

The company is currently in the process of selling its US assets and refocusing its activities on Africa and the Middle East.