CERP.L Regulatory News (CERP)

For Immediate Release, 7 am 6 May 2014

LENI GAS AND OIL PLC

("LGO" or the "Company")

Update on GY-664, Goudron, Trinidad

LGO is pleased to announce that the first new development well in the Goudron Field, GY-664, successfully reached a depth of 1,680 feet at 7 am (Trinidad) on 3 May 2014, and after logging and casing was reported to be drilling ahead midnight (Trinidad) on 5 May 2014.

A full suite of conventional electric logs have been run to 1,680 feet and initial analysis of those logs confirms the presence of over 350 feet of hydrocarbon bearing Goudron Sands.

The first casing point was deepened from an anticipated depth of 1,540 feet to 1,680 feet due to the well encountering a thicker than expected section of oil bearing Goudron Sands. The first 1,680 feet of well has now been successful cased and cemented with 9 5/8 inch steel casing.

Drilling is now continuing with an 8 1/2 inch hole section to a planned total depth of approximately 4,000 feet in order to test the primary objectives in the Gros Morne and the Lower Cruse Sands at depths below 2,800 feet.

The Company will provide additional information as it becomes available.

Neil Ritson, LGO Chief Executive, commented:

"Excellent progress is being made with the first of our 30 well development campaign. Extensive oil bearing Goudron Sands have been encountered and the well has been successfully logged and cased and we are now drilling ahead to the main objectives."

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.

Goudron Field Background

GY-664 is the first well of an approved 30 well development programme on the Company's 100% Goudron Field in Trinidad, which has independently verified proven and probable ("2P") original oil in place of 126 million barrels ("mmbbls") of which only approximately 4 mmbbls have been recovered to date. In place 2P oil resources assigned by Challenge Energy in their 2012 independent report totalled 72 mmbbls in the Goudron Sands and a further 54 mmbbls in the Lower Cruse.

To date the Goudron Field has been developed through a total of 154 wells drilled between 1927 and 1982 of which about 128 have given material production at either the Goudron or Lower Cruse levels, or both. Only 11 wells have previously been completed at the Lower Cruse reservoir and these have achieved an average production of 63,200 barrels per well. A total of 1.64 mmbbls have been recovered from the Lower Cruse, representing a very modest recovery factor of just 3%.

No wells have been drilled at Goudron since 1982 and wells drilled prior to that date did not benefit from modern instrumentation and mud conditioning techniques and this invariably, in the past, led to significant formation damage and resulting reduced production potential. It is expected that the drilling practices and perforating guns, being employed during the present campaign, will provide far better production performance.

Glossary:

The estimates provide in this statement are based on the Petroleum Resources Management System ("PRMS") published by the Society of Petroleum Engineers ("SPE") and are reported consistent with the SPE's 2011 guidelines. All definitions used in this announcement have the meaning given to them in the PRMS.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Bell Pottinger