GY-665 Drilling Update

For Immediate Release

3 June 2014

Leni Gas & Oil PLC

("LGO" or the "Company")

GY-665 Drilling Update

LGO is today pleased to announce that well GY-665, the second of 30 new development wells, has been successfully cased, cemented and electronically logged to the first casing point at a measured depth of 1606 feet at the base of the Goudron sands. The well is currently being deepened to the primary target in the Gros Morne sandstones, estimated to start at a depth of 2,100 feet.

The Company has received the report from its petrophysical consultants who have determined that GY-665 has intersected a net oil pay in the Goudron sands of 270 feet in the interval 590 to 1,440 feet measured depth.

Well GY-665 is approximately 800 feet south-west of the GY-664 and is the first of four planned wells from the same drill pad. GY-665, has a planned total depth of 3,500 feet and is anticipated to intersect with all three prospective reservoir intervals; the Goudron, Gros Morne and Lower Cruse, and is expected to encounter the Lower Cruse at around 3,000 feet. Wells GY-664 and GY-665 are separated by a known fault zone with the Lower Cruse reservoir anticipated to be structurally shallower in GY-665.

Neil Ritson, LGO's Chief Executive, commented:

"It is pleasing to see that GY-665 has followed in the footsteps of GY-664, with a 270 feet net oil interval in the secondary target Goudron sands. Operations to deepen the well to the Gros Morne are progressing well and we look forward to being able to update the market on the results in due course."

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

Glossary:

Pay:

A reservoir or portion of a reservoir that contains economically producible hydrocarbons. The term derives from the fact that it is capable of "paying" an income. Pay is also called pay sand or pay zone. The overall interval in which pay sections occur is the gross pay; the smaller portions of the gross pay that meet local criteria for pay (such as minimum porosity, permeability and hydrocarbon saturation) are net pay.