CERP.L Regulatory News (CERP)

For Immediate Release

17 June 2014

Leni Gas & Oil PLC

("LGO" or the "Company")

Goudron Development Drilling Update

LGO today announces that the third of its Goudron development wells, GY-666, was successfully spudded yesterday and is now drilling ahead.

As with the previous two wells the third well in the planned 30 well redevelopment program is intended to test the Goudron, Gros Morne and Lower Cruse sandstones, all of which are known to be productive for oil in offset wells. The well is being drilled as a deviated hole with a maximum angle of 16 degrees from the same well pad as used for the recently drilled well GY-665. 

Well GY-665 will be completed as a Gros Morne producer once the Well Services Rig 20 is demobilized from the well pad. The reservoir pressure recorded at the Gros Morne in GY-665 is higher than that observed in the recently completed well GY-664 and this is likely to lead to improved production potential.

Well GY-666 has a planned total depth of 3,700 feet true-vertical depth ("TVD") (equivalent to 3,820 feet measured depth) to a bottom-hole location that is approximately 900 feet south-west of the surface location. The primary target of this well is the Gros Morne sandstones, the top of which are anticipated at a depth of approximately 2,100 feet TVD.

Further announcements will be made once the main reservoir targets have been drilled.

Neil Ritson, LGO Chief Executive, commented:

"Reservoir pressures on the south side of the fault between GY-664 and GY-665 are higher and, given the similar quality of net oil pay, this is a very positive sign for the ultimate production potential of the four wells being drilled from the current well pad."

Results from the drilling program to date are given in the table in Appendix below.

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 over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Pelham Bell Pottinger

Appendix:

All depths are quoted as measured depth in feet below Kelly bushing

np = not penetrated

MD = measured depth