CERP.L Regulatory News (CERP)

Immediate Release, 7 am

9 March 2012

Leni Gas & Oil PLC

("LGO" or the "Company")

Gulf of Mexico Drilling Update

Leni Gas & Oil plc today announces progress in the A2ST01 well at the Eugene Island Field in the US Gulf of Mexico.

As previously announced, the Ocean Columbia jack-up rig was successfully installed at the Eugene Island-184 platform on the 17 February 2012. Drilling operations commenced on the planned sidetrack of the A2 production well on 18 February.

A window was successfully milled in the casing from 7,594 to 7,607 feet and the well has been drilled to a depth of 12,566 feet and is now approximately 500 feet above the anticipated reservoir. The target fault block, the Cranberry Creek prospect, has an estimated mean recoverable reserve of 0.5 million barrels of oil within the Tex-X2 target level at a depth of approximately 13,000 feet subsea.

The Eugene Island-184 leases are operated by Marlin Energy LLC and LGO holds a 7.25% working interest.

Neil Ritson, LGO Chief Executive, commented:

 "Operations have been running largely to plan and we now look forward to the imminent intersection with the prognosed reservoir zone."

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, 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

Beaumont Cornish Limited

Old Park Lane Capital Plc

Shore Capital

Joint Broker

Pascal Keane +44 (0) 20 7408 4090

Jerry Keen (Corporate Broking)

Pelham Bell Pottinger