CERP.L Regulatory News (CERP)

25 July 2011

LENI GAS AND OIL PLC

("LGO" or the "Company")

Farm-in Trinidad

Leni Gas & Oil plc today announces an agreement to farm-in to the Advance Oil Company (Trinidad) Limited ("Advance") North Moruga area leases. LGO plans to work-over existing producing wells and drill up to nine (9) new wells on the leases.

The Heads of Agreement with Advance sets out the framework for a full farm-in agreement and joint operating agreement by which LGO will:

·; take over operatorship of the Advance leases,

·; reactivate production from the existing wells on the leases,

·; drill a minimum of three (3) exploration and up to six (6) development wells,

·; obtain an immediate 33% interest in net production revenues,

·; on conclusion of the farm-in work programme, and depending on the number of wells drilled, earn between 33% and 49% interest in the Advance leases.

A signature bonus of TT$250,000 (US$39,000) has been paid to Advance and gives LGO exclusivity to conclude the definitive agreements and assignment of interests envisaged under the Heads of Agreement.

Advance, have held the North Moruga leases for a number of years, during which they have integrated all existing geological and production data and have already drilled three (3) exploration wells. Importantly, they have also acquired the environmental baseline data necessary to facilitate the permitting of further new wells. The leases cover an area of 1,223 acres and lie less than 5 kilometres east of the West Moruga Field which has produced 25 mmbbls of oil and 3.5 kilometres west of the Innis, Antilles and Trinity Fields which have produced approximately 15 mmbbls of oil.

Short-term production potential from the existing wells is estimated to be of the order of 120 bopd and LGO has agreed to spend up to TT$300,000 (US$47,000) during 2011 to raise the production to at least that level.

The definitive agreements require approval and a formal assignment of interests by the Trinidad and Tobago Ministry of Energy and Energy Affairs. These agreements are anticipated to take up to 90 days to obtain. The first new well will be drilled as soon as practical after interest assignment, likely to be in late 2011.

Neil Ritson, Chief Executive Officer commented:

"This is the first of a number of new opportunities that LGO is negotiating in Trinidad as we seek to significantly increase our operations there. The Advance leases lie in a highly prospective, but underexplored, part of the Southern Basin and the combination of existing proven reserves and several undrilled structures is especially attractive."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

Enquiries:

Leni Gas & Oil plc

Panmure Gordon

Shore Capital

Toby Gibbs +44 (0) 20 7408 4090

Jerry Keen

Pelham Bell Pottinger

Beaumont Cornish Limited

NOTES TO EDITORS

Leni Gas & Oil Plc is an international oil and gas exploration, development and production company headquartered in London, trading on the London Stock Exchange's AIM index. LGO's strategy is to acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise.

LGO operates a low risk portfolio of production expansion assets in the US Gulf of Mexico, Spain and Trinidad, and holds non-operated exploration acreage Malta. LGO's assets have significant play upside using strategies which leverage novel extraction technologies and proven production enhancement techniques. LGO specifically targets near term production with upside exploitation potential and manages its portfolio to ensure all assets have accelerated incremental reserves and production enhancement programmes.

 Glossary:

bopd - barrels of oil per day

mmbbls - million barrels

TT$ - Trinidad and Tobago Dollars

US$ - United States of America Dollars