Goudron Field drilling update & funding

For Immediate Release 23 December 2013

LENI GAS AND OIL PLC

("LGO" or the "Company")

Goudron Field drilling update and associated funding

LGO today announces that the Company has successfully secured an additional US$4 million of funding prior to commencing the programme of 30 new wells at its 100% owned Goudron Field in Trinidad where current 2P oil reserves total 7.2 million barrels.

The completion of these new funding arrangements means that the previously announced debt package which was arranged with Meridian SEZC is no longer required for the next drilling phase of the Goudron Field development; however, it may be reactivated for funding further acquisitions in Trinidad.

Goudron Drilling Update

The Environmental Management Agency ("EMA") of Trinidad and Tobago has confirmed in writing that it has now received all the data required for the final issue of the Certificate of Environmental Compliance ("CEC") for the planned drilling campaign at the Goudron Field. It is now anticipated that the CEC will be issued by 16 January 2014.

As previously announced on 28 November 2013, LGO intends to commence drilling of up to 30 infill development wells once approvals are received. Depending on the final receipt of the CEC and approvals for the drilling from the Ministry of Energy and Energy Affairs the first well is expected to spud as soon as the rig can be mobilised to the field, now expected to be in February 2014. Production from the field has continued at previously announced levels and the new wells will be placed on production within approximately 60 days of spudding.

The Company is expecting an additional 10 new pump jacks in January 2014 and the current recompletion programme, which has seen Goudron's oil production increased tenfold over the past year, will continue in parallel to the drilling of the new wells.

Funding Package

The Company has successfully increased its commercial debt by $1.5 million to $2.5 million in readiness for new drilling at the Goudron Field using its existing US$10 million commercial loan arrangements announced in June 2013.

The Company has also raised an additional £600,000 (US$0.96 million) before expenses, by way of a placing of 78,947,369 new ordinary shares ("the First Placing Shares") at a placing price of 0.76 pence per share ("Placing Price") with institutions representing sophisticated high net worth investors.

YA Global Master SPV Ltd ("YAGM") have also subscribed for a total of 131,578,944 new ordinary shares (the "Second Placing Shares") in the Company at the Placing Price for a gross consideration of £1 million (US$1.6 million). Of this amount, £500,000 will be paid back by LGO to YAGM under an Equity Swap Agreement from which LGO is expected to receive, subject to various adjustments, £41,667 per month for a 12 month period ("Base Amount"). YAGM have agreed not to sell any of their Placing Shares for a period of 2 months.

Equity Swap Agreement

The Company and YAGM have entered into an equity swap agreement ("the Equity Swap Agreement") pursuant to which, as above, the Company will pay YAGM £500,000. In consideration for this payment, the Company will receive twelve monthly payments of £41,667 between the date of admission of the Placing Shares to trading on AIM and 28 February 2015. The monthly payments can be adjusted either:

- up, if 90% of the lowest 10 day VWAP during the relevant one month period is greater than 0.836p, being a 10% premium to the Placing Price; in which case the Company will receive more than the Base Amount for a given month,

or

- down, if 90% of the lowest 10 day VWAP during the relevant one month period is lowerthan or equal to 0.836p. This would result in the Company receiving reduced funds from YAGM relative to the Base Amount in the relevant one month period.

Under the Equity Swap Agreement, YAGM will only be entitled, but not obligated, to sell approximately 11 million shares per month in small daily increments from 21 February 2014. The final amount of the monthly funds received by the Company under the Equity Swap Agreement will be dependent on the future price performance of the Company's ordinary shares, as set out above.

YAGM may elect to terminate the Equity Swap Agreement and accelerate the payments due under it in certain circumstances.

The issue of the First Placing Shares and Second Placing Shares (together the "Placing Shares") and entry into the Equity Swap Agreement are conditional on admission of the all the Placing Shares to trading on AIM ("Admission"). Application is being made for a total of 210,526,313 new ordinary shares to be admitted to trading on AIM which is expected to occur on 31 December 2013. These Placing Shares will rank pari passu in all respects with the Company's existing issued ordinary shares. Subsequent to the issuance of these shares the Company will have 2,250,773,914 ordinary shares in issue.

Further drawdowns from the existing US$10 million debt facility will be deployed as necessary to execute the remainder of the 30 well drilling campaign at Goudron and to conduct the necessary studies required to commence secondary recovery using water flooding to access additional oil reserves.

Neil Ritson, LGO Chief Executive, commented:

"We are encouraged that the approvals process is now reaching its conclusion and that the drilling of the critically important new wells at the Goudron Field will shortly be able to start. The additional funding arrangements ensure that the drilling programme can be carried out and that 2014 will be very exciting year as these new wells start to unlock the true potential of Goudron."

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.

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