CERP.L Regulatory News (CERP)

LENI GAS & OIL PLC

("LGO" or "The Company")

05, March 2010

PORTFOLIO RESOURCES STATUS UPDATE

Leni Gas & Oil plc (LGO), the AIM listed International Oil and Gas Exploration, Development and Production Company, today announces an interim update to the Company's resources revision and status of the Hungary investment.

As previously announced in the last corporate update, the Company is currently finalising the first corporate reserves and resources revision for all countries of operation. This revision has been ongoing for the last months and is being finalised by the Company's geotechnical provider, Equipoise Solutions Ltd ("Equipoise"), according to the Society of Petroleum Engineers Petroleum Resources Management System ("PRMS").

This revision is scheduled for issue in mid-March and shall include the results of the re-processed seismic interpretation for the Spain acreage and an audit of all existing resources reports for the other countries of operation according to the PRMS standard.

In addition, as part of the resources assessment during the last months, the Company has decided to divest all of its investments in Hungary, composed of 14.54% of ZalaGasCo Kft and 7.27% of PetroHungaria Kft.

LGO has assessed both investments in detail with the Company's geotechnical provider, Equipoise, and production technology provider, Eclipse Petroleum Technology Ltd ("Eclipse"), and concluded both ZalaGasCo and PetroHungaria ventures will not provide a material return on the Company's investment of 2 million Euros for Hungary.

LGO has therefore decided to relinquish its acreage in both ZalaGasCo and PetroHungaria, write off the Hungary investment in the Company accounts and will reallocate future Hungary development capital to the other countries of operations.

David Lenigas, Executive Chairman, commented:

"We are looking forward to reporting the Company's first group wide resources report for all countries of operation. This information will provide the Company and our shareholders with a quantum improvement in the resources knowledge for all countries of operation and allow us to optimise all exploitation strategies and plans to maximise the potential of each country investment."

"The Company has decided to divest its investment in Hungary, which is now considered a non-core asset. This decision allows the Company to divert additional capital resources to the core countries of operation to accelerate exploitation plans."

Competent Person's Statement:

The technical information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director for Leni Gas & Oil Plc (member of the SPE) who has 20 years relevant experience in the oil industry.

Enquiries:

Leni Gas & Oil plc

David Lenigas, Executive Chairman

Fraser Pritchard, Executive Director

Tel +44 (0) 20 7016 5103

Beaumont Cornish Limited

Roland Cornish / Rosalind Hill Abrahams

Tel +44 (0) 20 7628 3396

Mirabaud Securities Limited

Rory Scott

Tel +44 (0) 20 7878 3360

Pelham Bell Pottinger 

Mark Antelme / Henry Lerwill

Tel + 44 (0)20 7337 1500

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, Trinidad and Malta with significant play upside using similar strategies to leverage 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 programs.