Cashflow increase from Trinidad tax allowances

For Immediate Release, 7am 18 September 2013

LENI GAS AND OIL PLC

("LGO" or the "Company")

Increase in Cashflow from Improved Tax Allowances, Trinidad

LGO today announces the positive impact of recent revisions to capital allowances and tax credits to be applied to the oil and gas sector in Trinidad.

The Minister of Finance and Economy of Trinidad and Tobago in the 2014 Budget Statement to Parliament on 9 September 2013 (the "Budget") announced a series of revisions to the tax allowances on capital expenditure in the oil and gas sector effective from January 2014. The new incentives apply to various forms of capital spend and provide incentives for companies, such as LGO, who are actively engaged in exploration and development projects. Details are given in the Appendix below.

Production and exploration activities in Trinidad and Tobago have been LGO's focus since 2011 and are anticipated to be a dominant part of LGO's growth agenda, especially during the extensive redevelopment of the Goudron Field, where, subject to financing, some 30 new wells are planned in the next few years. The acceleration of capital allowances proposed in the Budget is therefore anticipated to have an immediate positive impact on cash flow, although there is no marked reduction on overall tax take over the life of the project. Based solely on the Company's plan to carry out field infill drilling at Goudron over the next 2 years the changes would result in a positive cashflow impact of approximately US$1 million per annum over the next 3 years.

Well reactivations at Goudron have continued in the last month and all the beam pumps necessary to complete a program of 19 additional reactivations by November have now been delivered to the Company's facilities in Trinidad. Recent poor weather has impacted on the regularity of electrical supply to the field; however, adjustments to operating practices and some additional tree clearing have been carried out to minimise future impacts from bad weather.

Plans to drill the first new infill wells at Goudron for more than 20 years are now well advanced and pending the anticipated receipt of approvals from the Environmental Management Agency drilling is still hoped to commence in late 2013 and the completion of the loan financing which is on-going and that is hoped to close with an initial drawdown in the next few weeks.

Since LGO also plans to engage in exploration within the Goudron Block in the next few years and to explore far more extensively in the Cedros Peninsular; where the Company holds a significant number of private petroleum leases and the agreement to cross assign further leases with Beach Oilfield Limited, the changes to exploration capital allowances will make a further more significant positive impact, however, the scale of which depends on the amount and timing of drilling undertaken.

Neil Ritson, LGO Chief Executive, commented: "LGO welcomes the additional incentives proposed by the Ministry of Finance. These changes increase the tax shelter in early years and therefore reduce the cash flow requirements associated with a given program; this is a welcome development that has positive economic benefits to LGO as it seeks to increase production from existing fields and explore for new resources in Trinidad."

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

Appendix

The proposals in the Budget are summarised in the following table:

For more information, please see the full budget statement:

http://www.finance.gov.tt/content/Budget-Statement-2014.pdf