CERP.L Regulatory News (CERP)

29 November 2011

Leni Gas & Oil PLC

("LGO" or the "Company")

Corporate Update

Equity Placement and Total Voting Rights

Leni Gas & Oil plc announces that it has raised £1,510,000 gross proceeds through the issue of 302,000,000 new ordinary shares of 0.05p each in the Company ("Placing Shares") at a price of 0.5 pence per share to investors (the "Placing"). The Placing was arranged by Shore Capital Stockbrokers Limited.

The funds will be deployed to advance the Company's various work programs. In particular, recent business development activity in Trinidad has greatly enhanced the Company's interests there and the Directors believe that significant opportunity exists to generate long term value for shareholders (further details of which are set out below). Further drilling is planned in 2012 on the Eugene Island field in the Gulf of Mexico and ongoing seismic work in Malta is seen by the Board as a major step towards realising value from the Area 4 license block.

It is the intention of David Lenigas and Neil Ritson, both directors of the Company, to participate in the Placing on similar terms.

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings in the Placing Shares on AIM are expected to commence on 6 December 2011.

The net proceeds of the Placing are planned to be deployed as follows:

Gulf of Mexico

·; Drilling of a sidetrack to the Eugene Island-184 A2 well has been proposed by Marlin Energy LLC to commence in mid-December. The well will be sidetracked to reach reserves in the Tex-X2 sands at a depth of 13,160' sub-sea. If successful the well will be completed in January 2012 and will boost production from the field. Additional opportunities to access reserves and production enhancement also exist at Eugene Island. LGO has a 7.25% working interest in the Eugene Island property.

Malta

·; A 1000 km sq 3D seismic survey is currently being acquired in Area 4 offshore Malta in order to prepare for possible drilling in 2012 on Eocene and Cretaceous prospects already identified on the existing seismic data. Once the survey has been completed it will be processed and be available for interpretation in late 1st quarter 2012. The interpretation will support an ongoing farm-out effort by LGO and the operator, Mediterranean Oil and Gas plc, prior to the drilling of a well in late 2012. LGO holds a 10% working interest in the Area 4 PSC.

Trinidad 

·; In the Moruga North leases in Trinidad,LGO has the opportunity to bring on production two existing wells expected to produce 120 bopd and also to commence the drilling of one or more exploration wells as part of the agreed three well program. In order to secure this opportunity for early 2012 drilling, financial commitments to a drilling rig and services are required to be made. LGO will earn a 49% interest in the Moruga North leases and associated Private Petroleum Licence.

·; LGO recently acquired land leases on the Cedros Peninsula in the South West of Trinidad and will apply for a Private Petroleum Licence which has certain obligations to geological studies aimed at exploring for the deeper East Venezuelan Basin Herrera Sandstone play thought to underlie the producing levels in the Icacos Field and surrounding area. LGO holds a 50% interest in the Icacos Field and 100% interest in all other Cedros land leases.

It is the intention of the Company to fund further investment in the Goudron Field in Trinidad through mezzanine debt or reserves backed lending or a combination of these. As announced in October it is also anticipated that a data room will be opened for third party participation in the Ayoluengo EOR project in Spain during early December. Development of the EOR project in conjunction with a partner will reduce the execution risk and reduce the costs to LGO of this project. In order to facilitate the preparation of the necessary studies a small portion of the funds raised in the Placing will be deployed in support these two initiatives.

Neil Ritson, LGO's Chief Executive commented: "Ongoing value creation initiatives have reached critical points at which the Board judge that future value considerations predominate and the Company needs to secure the growth in the longer term. The Company continues to have the asset base necessary to grow production to over 3000 bopd in the medium term, but a hiatus in investment now would have a highly detrimental impact on that aspiration."

David Lenigas, LGO's Chairman stated: "The Company has successfully raised the funds needed to maintain the highest value elements of the Company's growth agenda despite extremely difficult market conditions. We have imminent drilling opportunities in the Gulf of Mexico and in Trinidad, and a high value program in Malta and look forward to positive results from these activities."

Enquiries:

Leni Gas & Oil plc

Shore Capital (Joint Broker)

Pascal Keane +44 (0) 20 7408 4090

Jerry Keen (Corporate broking)

Panmure Gordon (Joint Broker)

Pelham Bell Pottinger

Beaumont Cornish Limited (Nominated Adviser)

Glossary

bopd - barrels of oil per day

EOR - enhanced oil recovery

km sq - square kilometres

PSC - petroleum sharing contract