Equity placement to complete Goudron acquisition

For Immediate Release

20 September 2012

Leni Gas & Oil PLC

("LGO" or the "Company")

Equity Placement to complete the

Acquisition of Goudron Field, Trinidad

Leni Gas & Oil plc announces that it has raised £2.4 million gross proceeds through the issue of 600,000,000 new ordinary shares of 0.05p each in the Company ("Placing Shares") at a price of 0.4 pence per share to investors (the "Placing"). The Placement was done by the Company through various private client brokers.

The funds will be exclusively deployed in Trinidad to complete the 100% acquisition of the Goudron Field where the Company holds the exclusive rights to acquire the existing Incremental Production Service Agreement ("IPSC") requiring a payment of US$3.6 million. All necessary regulatory approvals are now in place to close the transaction and LGO now anticipates completing the Goudron acquisition on or around the 22 October 2012.

As recently announced, Challenge Energy Ltd ("Challenge"), as Independent Competent Persons, have provided a comprehensive report on reserves in the field and have estimated proven reserves of 700,000 barrels and proven and probable reserves of 7.2 million barrels ("mmbbls"). A much larger proven, probable and possible reserve of 30.4 mmbbls is assigned by Challenge to the primary production potential of the field. The use of water flooding, a proven technique in the Eastern Fields Area of Trinidad, has the potential to further increase reserves to in excess of 60 mmbbls.

A rig has been contracted to commence workover activity in the field and is expected to arrive on site in early October.

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 1 October 2012.

Neil Ritson, LGO's Chief Executive commented:

"Trinidad is the future of the Company. The completion of the acquisition of Goudron is a major milestone in the recent history of the Company. We look forward to being able to actively develop the large resource base at Goudron, and also to simultaneously pursue other opportunities in our growing portfolio of exciting projects in Trinidad."

The Company also provides the following update on its operations:

Trinidad

Completion of the transaction with Cameron Oil and Gas Limited to acquire the IPSC requires LGO to pay US$3.6 million as the balance of the consideration. A novation agreement has been agreed with The Petroleum Company of Trinidad ("Petrotrin") and the consent of the Trinidad and Tobago Ministry of Energy and Energy Affairs has been obtained.

LGO through its local subsidiary Goudron E&P Limited ("GEPL") plans to commence an additional workover program, initially of five further wells, in the Goudron Field in October. This program can be extended once ownership of the IPSC is transferred and the Company plans to execute a program of at least 40 workovers in the first 12 months. Over the next 2 to 3 years up to approximately 90 wells previously productive on the field will be worked over and a possible 30 new infill wells drilled.

The field, not currently under GEPL supervision, is reported to be producing approximately 70 bopd. The short term objective of the additional five workovers is to stabilise production at over 100 bopd by November. Further work over the next 12 month is intended to steadily raise production and to collect sufficient up to date data to progress to the drilling of infill wells which offer significantly greater production potential.

As announced on the 18 September completion of the farm-in to the Moruga North leases held by Advance Oil is now expected to occur in October and the drilling of the first of the new wells will commence within 3 months of completion.

LGO is in the process of applying for a Private Petroleum Licence covering its 100% owned leases in the Cedros Peninsular surrounding the Icacos Field. Operations are expected to start in 2013, initially with geological work and an airborne gravity survey to delineate the possible extent of a deep exploration play.

US Gulf of Mexico

As announced on the 18 September, LGO had received a firm expression of interest to purchase its remaining assets in the Gulf of Mexico, including the Eugene Island field. That indication has now been converted to non-binding indicative offer of US$1.625 million subject inter alia to title due diligence and the Company is considering acceptance, since the GOM assets are non-core. If a sale is agreed the funds released will provide additional working capital for the core program in Trinidad.

Spain

Current production in Spain remains at a stable rate of 166 barrels of oil per day ("bopd")and the Company is now executing plans to raise production volumes in a small number of wells where the installation of a larger volume pumps will allow more fluid to be recovered, and where potential for greater oil production has been recognized. A target of 200 bopd is seen to be realistic once this program of pump enlargement has been completed later this year.

Discussions are continuing with Ravi Corporate SL ("Ravi") on possible arrangements through which Ravi can acquire the LGO asset in Spain. One possible arrangement under discussion would see Ravi acquire an initial minority interest in Leni Investments CPS Limited and rights to increase that stake progressively over a period of time. LGO takes the view that a partnership with a Spanish company offers substantial benefits in its operations in Spain. Nevertheless, in order to secure the Goudron Field in Trinidad the Board believes that the two transactions should now be progressed independently.

Our operations in Spain are profitable and following the implementation in late 2011 and early 2012 of a program of cost reduction and improved operational management we anticipate that operations will be cash generative for the future. With the Goudron Field acquisition complete there is a reduced urgency to divest the Spanish business and a partnership arrangement with a third party presents an attractive alternative.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Shore Capital

Joint Broker

Pascal Keane +44 (0) 20 7408 4090

Jerry Keen (Corporate Broking)

Pelham Bell Pottinger

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