Company Information for Leni Gas & Oil Plc

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AIM; LGO

Company Statement

Leni Gas & Oil Plc is a newly incorporated company that has been established by its shareholders to identify and acquire a number of projects in the oil and gas sector with particular emphasis on projects that are in production or with previously explored hydrocarbons. Such may be acquired by direct investment, or by acquiring all or part of an existing or newly formed company or business; in each case, the company intends to be an active investor.

Operations and Technology

Leni Gas and Oil plc’s strategy is focused on enhancing the value of existing oil and gas producing assets, where it can maximise equity position, operator influence, exploitation potential, and fiscal stability. It operates a low risk portfolio of stable production assets with significant upside using similar operating approaches to leverage technologies and proven secondary recovery techniques.

Since its incorporation in 9 August 2006, the Company has been fulfilling this strategy and investing in acreage in a number of the prime oil producing regions of the world. LGO has secured exploration areas in the US Gulf of Mexico, Spain, Trinidad, Hungary and Malta. All geographical regions in which the Company has invested an interest have proven track records in the production of hydrocarbons and represent a great opportunity to further develop and maximize shareholder value.

Byron Energy (28.94% LGO), Gulf Of Mexico

Byron Energy gross interests include 25% WI in the Eugene Island block 183, 25% WI in block 184 south (including 184A production facilities), 12.5% WI in block 184 north and 10.37% WI in block 172. The Eugene Island asset is located 50 miles offshore Louisiana in approximately 25m of water with production facilities designed to handle 30mmscfd, 10mbopd and 10mbwpd.
The average joint venture gross production is 1274 bopd and 5mmscfd, with recent successful development drilling of the A-7 well identifying 56m of TVD net pay in all six target sands. Drilling of the A-8 and A2ST wells are planned immediately after A-7 completion. A significant production increase is forecast by end 2008 with A7, A8 and A2ST completion.

Ayoluengo Oilfield (100% LGO), Spain

Ayoluengo oil field (93-104-116 mmbo STOIIP, P90-50-10) has only recovered 17mmbo to date (low recovery factor, ~17%), with wells producing dry oil (37deg API) and reservoir lacking pressure to sustain higher production. No proven enhanced oil recovery methods have been used to energise the reservoir, such as water flood despite successful trials by Repsol. Similarly no modern geological re-interpretation was conducted on the field to identify enhancement opportunities until recently by LGO.

Penészlek Development Area (7.27% LGO), Hungary

A Miocene discovery which produced 3.5 bcf in 1980’s, has remaining 19.4 bcf potential in Miocene and additional 2.3 bcf in Pannonian sands. Re-development of the field is centred on the Pen-104 discovery which commenced first gas production in August 2008 at 4mmscfd.

New gas gathering and processing facilities at the Pen-104 well-site have been installed with connection to the nearby gas transportation grid operated by MOL. All sales gas are handled by MOL.

For development capex of €1.1 million, Pen-104 gas production will generate post tax venture revenues of P50 €4 million within two years. Nearby undeveloped wells, once connected will generate a total P50 production of 7.6 Bcf and €25.6 million cash-flow. Pen-104 production revenue shall fund a 3D seismic program at end 2008 to identify additional developments for maximising production through facilities.

Zala Basin (West Hungary), Enhanced Recovery Gas Development, Hungary

Zala Basin agreement (50/50) between MOL (Operator) and Joint Venture Partners to enhance gas production of multiple tight gas fields. MOL provides gas gathering, treatment and export facilities with the Joint Venture Partners responsible for the enhanced recovery development.

A phased development approach is planned to validate the incremental recovery methods and to increase chance of success in deeper reservoir stacks. The recovery method re-develops each operating well with new horizontal completions in each reservoir stack. Once the development approach is proven, other reservoirs have been identified in the Zala Basin for repeated development through a MOL option agreement.

Geographical Spread

Board of Directors and Key Management

Chairman	David Lenigas
Executive Director	Jeremy Edelman
Finance Director	Donald Strang
Operations Director	Fraser Pritchard

Company Address

Level 5, Arlington Street
London, United Kingdom SW1A 1RD


Telephone:	+44 (0) 20 7016 5100
Facsimile:	+44 (0) 20 7016 5101
Email:	info[at]lenigasandoil.com
Website:	http://www.lenigasandoil.com

Capital

Total Shares on Issue; 608,254,965

Annual General Meeting

29th May 2009

Nominated Brokers

Mirabaud Securities Limited,
21 St James’s Square,
London, SW1Y 4JP

Nominated Advisors

Beaumont Cornish Limited

Major Shareholders

Significant Shareholder	% of Issued Capital

David Lenigas	21.70%
HSBC Global Custody Nominee (UK) Ltd	08.16%
Canaccord Nominees Ltd	07.53%
Securities Services Nominees Ltd	05.90%
Lynchwood Nominees Ltd	05.70%
Nutraco Nominees Ltd	05.00%
State Street Nominees Ltd	04.19%
Fitel Nominees Ltd	03.84%
Chase Nominees Ltd	03.38%
L-R Global Partners LP	03.31%
BNY Mellon Nominees Ltd	03.07%

Total Significant Holders	71.78%

Most Recent Statement

25/11/09 - Corporate Activity & Production Update - October
11/11/09 - Shareholding
24/09/09 - CORPORATE ACTIVITY & PRODUCTION UPDATE - AUGUST
02/09/09 - Hungary - Penészlek Development Update
26/08/09 - Corporate Activity & Production Update - July
21/08/09 - Gulf of Mexico - Award of Four New Leases

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