Interim Results for the six months to 30 June 2013

For Immediate Release, 7am

24 September 2013

LENI GAS AND OIL PLC

("LGO" or the "Company")

Unaudited Interim Results

Leni Gas and Oil plc, the oil and gas production company with assets in Trinidad and Spain, today announces its unaudited results for the six month period ending 30 June 2013.

Highlights

FINANCIALS

· Revenue for period £2,308,000 (1H 2012 £1,753,000).

· Gross profit for period of £310,000 (1H 2012 £330,000).

· Pre-tax group loss for period of £1,389,000 (1H 2012 loss of £971,000). The higher costs arise from the on-going development of the Goudron asset, and exceptional one off items, including the costs associated with debt financing and the legal case against Mediterranean Oil and Gas plc.

OPERATIONS

· Company-wide sales, net to LGO's interest, totalled 45,969 barrels of oil (1H2012: 30,155 barrels oil equivalent), a 52% increase year-on-year.

· Production increased steadily at the recently acquired Goudron Field in Eastern Trinidad from 105 bopd at year end 2012 to 260 bopd at the end of the half-year. Sales in the period totalled 27,289 barrels of oil. At the time of this report the last reported daily production from Trinidad was 349 bopd.

· During the reporting period Spanish oil sales from the Ayoluengo Field totalled 16,179 barrels of oil; however, no sales were made in June due to planned maintenance work by the buyer. June production was held in stock and sold in August.

COMMERCIAL

· An agreement has been signed with Maxim Resources to seek to jointly pursue further developments in the South Erin Block in south-central Trinidad.

· LGO continues to pursue access to the largely unexplored Cedros Peninsula in southwest Trinidad and has applied for a Private Petroleum Licence for its 100% owned leases. The Company has also entered into a Heads of Agreement with Beach Oilfield Limited (BOLT) to significantly enlarge the area under its operatorship.

· Following the end of the period, LGO was granted reduced overriding royalty rates by Petrotrin on production from the Goudron field. The new, substantially lower, rates are effective from 1 August 2013.

CORPORATE

· The Company announced the negotiation of a US$50 million debt finance package with Meridian SEZC to fund the development of the Trinidad portfolio.

· In late June the Company secured a $2m short-term debt facility.

· LGO raised gross proceeds of £1.3 million in new share equity in June through the issue of 162.5 million ordinary shares to satisfy the conditions of its loan finance.

· LGO is proceeding with its legal case against Mediterranean Oil and Gas plc (MOG). The company and its legal advisors continue to firmly believe that LGO has a good case to win substantial damages.

TARGETS TO END 2013

· Reacha daily production of 400 barrels oil from theGoudron Field.

· Commence drilling new infill wells at Goudron.

· Complete planned wellbore clean-up activities in Ayoluengo.

· Progress the Maxim and BOLT transactions.

NOTES

All figures are net LGO unless otherwise stated.

David Lenigas, Executive Chairman, commented: "The major transformation in LGO which started in 2012 has been continued in the year to date. The refocusing to Trinidad has seen the Company's oil production grow by over 50% relative to the same period in 2012 and that trend will continue for the remainder of the year.

LGO is also moving rapidly towards a more secure debt funding model and this will improve shareholder returns in the future. Our assets in Trinidad, and to a lesser extent in Spain, have numerous reinvestment opportunities and we will be energetically pursuing those, whilst also building medium and longer term growth opportunities in Trinidad.

LGO, as a group, is producing 400 barrels of oil a day and has in excess of 10 million barrels of proven and probable reserves. With the access to capital that senior secured debt will provide we have an exciting and profitable future mapped out for the Company."

Operational Review

A summary of activity by country of operations during the reporting period follows:

Trinidad

The Company, through various wholly owned subsidiaries, holds interests in two producing fields; Goudron and Icacos, and in a number of private petroleum leases where production has yet to be established. LGO has also negotiated various agreements with third parties to farm-in or otherwise acquire interests in additional properties in Trinidad.

On the 19 October 2012 LGO acquired, through its wholly owned subsidiary, Goudron E&P Limited (GEPL), the Incremental Production Service Contract (IPSC) for the Goudron Field in the Eastern Fields Area in south eastern onshore Trinidad.

Prior to taking over control of the field as operator, LGO had agreed to carry out various works in support of the previous contract operator including the mobilising of a light work-over rig in May 2012. On taking over the full-time operation of the contract, GEPL immediately commenced a series of well work-overs and reactivations which have continued through the first half of 2013. Two workover rigs have been continuously deployed at the field since April 2013 and are expected to remain until at least the end of 2013.

Oil produced at Goudron is stored in sales tanks before being measured and pumped into the Petrotrin owned pipeline adjacent to the field which carries the oil directly to the Pointe-au-Pierre refinery in western Trinidad. As production rose steeply in the period, even increasing the frequency of sales was not sufficient to avoid capacity constraints, and so a new sales tank was constructed and commissioned in August. Sales capacity has been increased to approximately 745 barrels which allow production of up to 530 barrels of oil per day (bopd) to be handled on a weekly basis. Additional sales tank capacity up to 2,000 barrels has been planned and environmental permits have been requested. Longer-term the installation of a Lease Automatic Custody Transfer (LACT) meter will be investigated to handle anticipated production from the field.

A total of 42 wells had been reactivated by end June, from a total stock estimated to be some 90 accessible and reusable wells. Further wells have been reactivated since the end of the reporting period and this process will continue at least until end 2013. New beam pumps, purchased locally, and fabricated in China, are being used along with a small number of progressive cavity down-hole pumps (PCP) and plunger-lift pumps in order to efficiently redevelop the field. Most pumps deployed in the field are powered by electricity supplied from the Trinidadian grid. Electricity distribution is being progressively expanded so that a greater area of the field has access to electrical power, and where necessary diesel-engine beam pumps are deployed to test wells in remote areas where electrical power is not yet available. The additional pumps have already been delivered, allowing the programme to continue uninterrupted through the balance of 2013.

In addition to electrical supply, other infrastructure improvements are being made in order to bring the field up to an acceptable standard of modern operations. Security, communications, accommodation, roads and produced water handling facilities are all being brought up to date. The field is located in an area of primary tropical forest which receives higher than average rainfall. In order to prevent problems with electrical outages caused by falling trees a more extensive vegetation cut back is underway and will have the secondary benefit of allowing the roads to dry more quickly after rain facilitating access to remote areas of the field.

All the necessary documentation associated with a certificate of environmental compliance (CEC) for 30 new infill wells has been submitted to the Environmental Management Agency and it is anticipated that clearance to commence the next phase of redevelopment will be available in early fourth quarter. Drilling contractor assessments have been performed and drilling will be initiated as soon as it is practical, once CEC approval has been received. The sites for the new wells have been selected and once the CEC is granted LGO will initiate the contracts and other authorisations required to commence drilling. It remains the Company's target to commence drilling operations this year.

The funding of the field redevelopment with infill wells is anticipated to be met by senior debt arrangements. The arrangements for the Meridian SECZ loan have continued through to the date of this report with the process of syndication now on-going. Whilst the Company still anticipates closing of this loan alternative debt options are now under active consideration.

Commercial negotiations initiated in May with the Petroleum Company of Trinidad and Tobago (Petrotrin), with whom the IPSC is held, were successfully concluded in August with an agreed reduction of the overriding royalties paid to Petrotrin. In return for the reduced royalty payments, LGO undertook to increase the commitment work programme through the drilling of ten additional development wells and one exploration well in the Goudron Block. This work programme, already envisaged in the Company's business plans, will be carried out over the next 6 years to November 2019. The contract was also modified to clarify the process for extending the duration of the IPSC, with terms for an additional 5 year period to 2024 being mutually agreed and further extensions being possible. The new overriding royalty rates are effective from 1 August 2013 and represent a marked increase in cash net-back from production. LGO intends to reinvest operational cashflow into new capital projects within the field.

Elsewhere in Trinidad, through its local subsidiary Leni Trinidad Limited (LTL), LGO holds a 50% interest in the producing Icacos Field in the Cedros Peninsula, operated by Territorial Services Group, a subsidiary of Touchstone Exploration. Territorial have carried out two work-overs at the field in the period covered by this report, and as a result production has been maintained at similar levels to the previous period.

The Company continues to pursue its strategy of increasing its footprint in Trinidad, and in March signed a heads of agreement with Maxim Resources Inc. (Maxim), to collaborate on oil field developments in the South Erin Block. LGO has agreed, subject to due diligence, to provide CDN$2.5 million in shares or cash to fund Maxim's activities and will gain up to 49.99% of the issued share capital in Maxim as a result. Should Maxim be successful in acquiring control of the South Erin Block, LGO will invest up to US$5 million in further developing drilling in the producing Jasmin Field, and will become field operator and hold at least a 50% working interest. Maxim is presently engaged in a legal dispute with the shareholders of the Jasmin Oil and Gas Limited, the resolution of which is central to the successful delivery of this option. As a consequence the transaction deadlines have been progressively revised to accommodate developments in this legal case.

In the wider Cedros Peninsular, LTL holds a number of private petroleum leases totalling about 1,750 acres and is in the process of obtaining a private petroleum licence from the Trinidad and Tobago Ministry of Energy and Energy Affairs (MOEEA), in order to carry out a number of field surveys with a view to eventually drilling exploration wells. LGO has also entered into a Letter of Intent with Beach Oilfield Limited (BOLT) to cross-assign the interests of the two companies within the Cedros Peninsula at stratigraphic levels below 7,000 feet. LTL will be the operator of the combined leases and will hold a 100% working interest, with BOLT receiving an overriding royalty on any future production revenues. The definitive documentation is being prepared for eventual signature, subject to due diligence, in the fourth quarter 2013.

No substantial progress has been made with the conveyancing of the leases associated with the North Moruga farm-in and as a consequence no operations have commenced in the field. It is increasingly unclear how this situation will ultimately be resolved; however, the LGO Board has concluded that there are now sufficient alternative opportunities elsewhere in the LGO Trinidad portfolio and this option may ultimately be allowed to lapse. A sunset clause in the contract falls due in late 2013.

Following the announcement of an onshore lease sale by the MOEEA, LGO has been working independently and with several potential partners to prepare a bid for acreage which is seen to be prospective a multiple levels in areas immediately adjacent to producing fields. The deadline for proposals is at the end of October 2013.

Spain

LGO holds a 100% ownership through its wholly owned subsidiary, Compañia Petrolifera de Sedano (CPS), in one production concession, La Lora (which contains the Ayoluengo producing oilfield), and three exploration permits; Basconcillos-H, Huermeces and Valderredible, in Northern Spain.

Oil sales during the year were made exclusively to Saint-Gobain Vicasa SA (Saint-Gobain) under the contract renewed in 2012. Saint-Gobain uses the Ayoluengo crude oil as fuel oil in their factories within Northern Spain. Under the terms of the contract CPS receives a price linked to Brent with discounts to adjust for the fuel oil grade and impurities.

During June and into July Saint-Gobain carried out a planned maintenance at their factory installations and during the shutdown LGO stockpiled oil at Ayoluengo. Sales to Saint-Gobain resumed in August and it is anticipated that normal stock levels will be achieved by end-September.

During the sales stoppage in June and July CPS, carried out extensive maintenance to the processing facilities; opening and cleaning process vessels, and recertifying them. This work has resulted in improved oil-water separation and reduced impurities (predominantly Arsenic) in the sales oil. As a consequence discussions have been renewed with BP España on trialling Ayoluengo crude through the Castellon Refinery as a first step in enacting the sales contract signed with BP in 2011. At the time of this report laboratory trials and analysis are on-going at Sunbury in the UK and it is hoped to receive definitive results in the remainder of 2013.

In early 2013 work commenced to install larger pumps in both Ayo-46 and Ayo-37. Various problems were encountered with the Weatherford supplied pumps, which along with delays due to their late delivery by the supplier, lead to complications in installing the pumps during the winter weather conditions; low temperatures, snow and high winds, which often cause non-production related operations to be suspended. Following various trials well Ayo-37 was eventually returned to the original pump design. Further trials at Ayo-46 have been made without marked improvements in pump efficiency. As a result a packer has been installed in Ayo-46 to reduce water inflow and the well has subsequently seen a return to better production efficiency, although the water-cut from this well remains high.

Production decline is now being seen in several key wells in the field and a remedial program of well clean-up involving the removal of accumulated scale and wax deposits is being planned for the fourth quarter 2013. It is anticipated that production will be restored to 2012 levels on completion on those works.

Following the cessation of possible asset sale discussions in late 2012 LGO has held discussions with several parties who have expressed an interest in partnering with CPS in further field development at Ayoluengo. Several of these non-exclusive discussions are currently being pursued. LGO's intention is to initiate detailed engineering technical studies in late 2013 with a view to carrying out a program, including the side-tracking of up to five existing wells, should the studies confirm the current engineering assumptions.

In the Huermeces licence, the Company's application for the conversion of the Exploration Licence to a Production Concession remained under consideration with the Spanish authorities. Consequently there has been no further work or production from the Hontomin Field.

There has been no work undertaken in the Basconcillos-H licence area where the Tozo-1 gas well is located. This project is dormant pending further studies of potential uses of the gas discovered in Tozo. A licence extension in the Valderredible licence is also pending approval. It has so far proved difficult to operate in a large part of the licences due to environmental restrictions within the National Park which covers much of the area.

During the reporting period Spanish sales totalled 16,179 barrels of oil (1H2012: 23,148 barrels), exclusively from the Ayoluengo Field. No sales were made in June due to the shutdown of the Saint-Gobain factory. During the equivalent 5-month period in 2012 sales totalled 19,670 barrels, a 17% decline which will be redressed by planned well clean-up activities.

Malta

In January LGO issued proceedings against Mediterranean Oil and Gas plc (MOG) in the High Court of England and Wales alleging misrepresentation at the time of the sale of the Company's 10% interest in the Area 4 Petroleum Sharing Contract in Malta. In a Case Management Conference before Justice Clarke in May the Court refused MOG's application for security over costs in the action and ordered MOG to pay LGO's costs in defending that application. The Court also ordered disclosure of relevant documents and set a timetable to trial in March 2014.

Subsequent to their initial disclosure made in July 2013, MOG have changed their legal representation from Herbert Smith to Memery Crystal. LGO has sought additional disclosure and clarification of documents already disclosed. The Company remains steadfastly of the view that it was misled by MOG at the time of the sale of the 10% interest in July 2012 and will pursue its actions for substantial damages.

Neil Ritson

Chief Executive Officer

24 September 2013

Competent Person's statement:

The information contained in this document has been reviewed and approved by Neil Ritson, Chief Executive Officer for Leni Gas & Oil Plc. Mr. Ritson is a member of the SPE and Fellow of the Geological Society, an Active Member of the American Association of Petroleum Geologists and has over 35 years relevant experience in the oil industry.

GLOSSARY & NOTES

3D = three-dimensional

boepd = boe per day (barrels of oil equivalent calculated on the basis of six thousand cubic feet of gas equals one barrel of oil)

bopd = barrels of oil per day

FY = Full Year

mm = million

PSC = Production Sharing Contract

FINANCIAL STATEMENTS

GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

 GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2013

GROUP STATEMENT OF CASH FLOWFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

GROUP STATEMENT OF CHANGES IN EQUITYFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

1. Basis of preparation

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 30 June 2013 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2012. The figures for the period ended 31 December 2012 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 19 September 2013.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Leni Gas and Oil Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

2. Segmental analysis

2. Segmental analysis (continued)

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

2. Segmental analysis (continued)

3. Earnings per share

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:

As inclusion of the potential ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive, as such, a diluted earnings per share is not included.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

4. Called up share capital

The called up and fully paid share capital of the Company at 30 June 2013 is as follows:

Total share options in issue

No options were issued during the 6 months ended 30 June 2013.

As at 30 June 2013, the options in issue were:

29 million options lapsed, no options were cancelled or were exercised during the period ended 30 June 2013.

Total warrants in issue

During the 6 months ending 30 June 2013, 18,267,282 warrants were issued at 1.1103p.

As at 30 June 2013, the warrants in issue were:

78 million warrants lapsed, no warrants were cancelled and no warrants were exercised during the period 30 June 2013.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

5. Intangible assets

6. Tangible assets

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2013

7. Events after the reporting date

On the 3 July 2013 LGO cancelled all previous existing options to directors and replaced it by a new performance based option package for its key directors. In total 115 million options were issued, with varying vesting profiles linked to delivery of the growth agenda.

LGO continues its legal action against Mediterranean Oil and Gas plc (MOG). Disclosures were made in July per the previously announced Court order. After this disclosure, MOG changed their legal representation from Herbert Smith to Memery Crystal. LGO has sought additional disclosure and clarification of documents already disclosed. The Company remains steadfastly of the view that it was misled by MOG at the time of the sale of the 10% interest in July 2012 and will pursue its actions for substantial damages.

On the 5 August 2013 LGO announced that production had been fully restored from existing wells and had been enhanced by the reactivation of a previously dormant well at the Icacos Field (LGO 50%, non-operator). This was an update to the announcement made on 12 June 2013, when it was indicated that work-over activity was required on the Icacos Field in the Cedros Peninsula.

On the 14 August 2013 LGO announced that it had successfully concluded an agreement with the Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") to reduce substantially the overriding royalty rates associated with oil production from the Goudron Incremental Petroleum Service Contract ("IPSC") and to extend the contract by five (5) years to November 2024 in consideration for LGO undertaking additional drilling activities at the onshore Goudron Field in Eastern 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.

On the 10 September 2013 LGO announced that, further to its announcement on 13 August 2013 concerning a non-binding Heads of Agreement ("HOA") with Maxim Resources Inc. ("Maxim"), that an agreement has been reached with Maxim to extend the deadline to complete the transaction envisaged in the HOA. Due diligence will be completed in the next few weeks and a new planned closing date will be set by the end of September.

8. The financial information set out above does not constitute the Group's statutory accounts for the period ended 31 December 2012, but is derived from those accounts.

9. A copy of this interim statement is available on the Company's website : www.lenigasandoil.com

CORPORATE INFORMATION