CERP.L Regulatory News (CERP)

For Immediate Release 9 December 2013

LENI GAS AND OIL PLC

("LGO" or the "Company")

Update on Cedros, Trinidad

LGO today announces progress on definitive agreements with Beach Oilfield Limited ("BOLT") in the Cedros Peninsula of SW Trinidad with the signing of an Exclusivity Agreement, a Consultancy Agreement and Data Agreement. 

Neil Ritson, LGO Chief Executive, commented:

"Our discussions with BOLT have been very productive and we have various work programme proposals that are advancing in parallel with the contractual framework. The first activity is now expected to be underway in early 2014. Next year will see the first material advances in exploration in the Cedros since the FRM-1 well drilled in 2008 which found oil below 11,750 feet in the Lower Cruse formation." 

BOLT Agreements

The Heads of Agreement ("HOA") signed with BOLT in June 2013 covered three main areas: (1) the cross-assignment of deep rights between the parties so that LGO would become 100% interest holder in all the private petroleum leases below 7,000 feet (the "Farm-in Agreement"), (2) the provision by BOLT of all relevant data on the Cedros Peninsula (the "Data Agreement") and (3) an agreement for BOLT's principal expert, Dr Krishna Persad, to provide consultancy services to LGO (the "Consultancy Agreement"). These agreements secure LGO's access to a package of over 7,500 gross acres of underexplored leases on trend with large oil discoveries in both Trinidad and Venezuela.

The Farm-in Agreement is still at a drafting stage and to ensure the continuity of the relationship between BOLT and LGO an Exclusivity Agreement has been executed to give LGO exclusive rights under the HOA until the end of March 2014 by which time all the associated arrangements are expected to be finalised. The Data Agreement has now been agreed between the parties and is expected to be signed in December. The Consultancy Agreement was signed in October for an initial period of 12 months.

Subsequent to the signing of the HOA, BOLT have successfully received their assignment of the leases covered by the Farm-in Agreement and have commenced work on those leases. It is for example envisaged that a surface soil geochemistry survey pertinent to the joint interests of BOLT and LGO will be acquired in early 2014.

LGO's own Private Petroleum Licence for the Cedros leases in the Perseverance and Columbia Estates which are under 100% LGO ownership is at the Ministry of Energy and Energy Affairs for approval and is now expected to be granted in early 2014.

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