Company Information for Leni Gas & Oil Plc

AIM-LGO

www.lenigasandoil.com

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AIM; LGO

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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

Since its listing on LSE’s AIM in March 2007, Leni Gas & Oil has completed four acquisitions and assembled a portfolio producing acreage, all with significant enhancement potential. These acquisitions align with the Company’s stated strategy of delivering growth through the acquisition of proven reserves & enhancement of producing assets. Its assets include known discoveries in Europe and the Caribbean, all with existing or near term production, and with exploitation upside. In maximising near growth, the group does not focus on frontier or high risk exploration. Most recently the Company also announced an acquisition of 22.3 per cent of Byron Energy who’s primary assets comprise rights over oil and gas properties in the Gulf of Mexico under a scouting agreement with AIM-listed Leed Petroleum Plc.

Its main asset is the cluster of permits onshore northern Spain, including the La Lora concession, which contains the producing Ayoluengo field. The other concessions are the Huermeces, Valderredible and Basconcillos H permits, which have a combined acreage of 662 sq kms.

The Ayoluengo field has a long history going back to the 1960s when Chevron and Repsol were involved. There has been historical production of 17 million barrels which equates to just over 17 per cent recovery, of 37 degree API oil. The field is the largest Spanish onshore oilfield, with mean STOIIP reserves of 104 million barrels and with processing facilities designed to handle production of 10,000bpd. However, a complex ownership structure in the past, which at times has included companies well known to oilbarrel.com readers such as Northern Petroleum, Gold Oil and Tethys Oil, has meant that activity has been low in recent years.

Leni has acquired 100 per cent of the field which speeds up the decision making process. Current production is 140 bpd, and the absence of reservoir pressure has mitigated against sustaining high production. However a major secondary recovery phase has been commenced by the Company with the piloting of various programs which should see the production rise close o 1,000 bopd once implemented across the whole field.

On the other three permits, where Leni has a 85 per cent stake, there have been numerous discoveries including, on the Huermeces acreage, the Hontomin oil discoveries, the Huidobro oil discovery on the Valderredible permit, and the Tozo gas discovery on the Basconcillos-H permit. The Ayoluengo source rock straddles the majority of this acreage. The previous operator estimated mean discovered reserves in these exploration permits at 13 million barrels of oil equivalent. This gives scope for geological re-interpretation to identify high potential prospects and validate discoveries.

The company’s Caribbean producing asset is through its 50 per cent stake in the 8 sq kms onshore Icacos oilfield located in the Cedros Peninsula of Southern Trinidad. The field has been producing since 1996. Current output is 35 bpd. In mid 2008 production enhancement programme was initiated to lift production to 150 bpd using similar techniques to those identified at Ayoluengo.

There is also the Icacos Deep Prospect, which straddles the highly prospective East Venezuelan basin. There have been significant oil and gas discoveries in the halo vicinity ifofIcacos, and the company is working as of mid 2008 with its joint venture partners on a major programme to identify the prospectivity of the area.

In Hungary Leni has acquired interests in two development opportunities. It has bought a 7.27 per cent stake in the Peneszlek gas field. This is a mature gas field previously operated by MOL but now operated by PetroHungaria. This project is centred on the development of the PEN-104 discovery well that was drilled and tested by PetroHungaria in 2006. The joint venture partners were in June 2008 completing the P-104 discovery wells for gas production, with planned tie-in of the existing P-9 and P-12 wells. Initial gross plateau production from the wells is forecast at 2 3.3, 2.5 and 1.2 million cubic feet a day respectively for a total of 7 million cf/d. For a development capex of €5.2 million the three well development should produce a P50 total of 7.6 bcf over a period of 6 years, returning the capital investment over two years and generating some €25.6 million cash flow.

The other Hungary venture is the Zala Basin Gas play (Leni 7.27 per cent) on the border with Slovenia. This is operated by MOL with a pilot rehabilitation planned of the Bajcsa tight gas field with GIIP of 60 bcf and 28 per cent historical recovery. The field is currently on production with existing processing and transportation facilities by MOL. The rehabilitation shall undertake multiple horizontal completions of the wells to achieve a planned recovery of 13bcf.

Board of Directors and Key Management

Chairman	David Lenigas
Executive Director	Jeremy Edelman
Finance Director	Donald Strang

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 (fully diluted);744,418,871

Nominated Brokers

Beaumont Cornish Limited

Nominated Advisors