Major Acquisition in Trinidad

Immediate Release, 7 am

3October 2011

Leni Gas & Oil PLC

("LGO" or the "Company")

Major Acquisition in Trinidad and

Completion of a GBP 5 million Equity Line Facility

Leni Gas & Oil plc today announces the acquisition of Goudron E&P Limited ("GEPL"), a company which holds exclusive rights to acquire the Incremental Production Service Contract ("IPSC") for the Petroleum Company of Trinidad Limited ("Petrotrin") owned Goudron Field in onshore south-eastern Trinidad.

Highlights:

·; The Goudron Field was originally developed by Texaco

·; The existing producing zones have reserves of proven 1.9 mmbbls and estimated 3P reserve of 21.8 mmbbls

·; The concession covers a total of 2,875 acres (11.4 sq km) which more than doubles LGO's land holding in Trinidad

·; The current production comes from a small number of active wells out of a total of 152

·; Production potential has been estimated to be in the range 1,000 to 4,000 bopd

·; The drilling of new infill wells could commence in early 2012

·; Additional undeveloped reservoirs in the Gros Morne (Upper Cruse) and Lower Cruse formations provide considerable opportunities for future reserves growth

·; Much of the concession is underexplored and significant exploration opportunities exist

·; LGO is acquiring 100% of the rights under the IPSC and will become operator

The Gourdon Field lies between the East Moruga, and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. The field was originally discovered by Trinidad Leaseholding Limited in 1927 and was developed in its current form by Texaco between 1956 and 1986 when it passed to Petrotrin. A field reactivation contract was signed in late 2009.

The field has had very little investment over the last 25 years, and the existing production comes from about 30 wells, of which 12 are on production with beam pumps and the others flow naturally or are periodically swabbed. Recent production has ranged between 100 and over 200 bopd. The oil reservoirs are generally between 300 and 3,500 feet below surface and the oil is light low sulphur crude with an API gravity ranging between 25 and 55 degrees and a mean of 32 degrees. GOR is variable and generally higher in the deeper Gros Morne (Cruse equivalent) reservoir zones.

GEPL was previously owned by Sorgenia Trinidad and Tobago Holdings Limited ("Sorgenia"), and based on studies carried out by Sorgenia the oil in place in the existing producing zones is estimated to be between 120 and 225 million barrels STOIIP, with a P50 estimate of 166 mmbbls. Proven reserves of 1.9 mmbbls are currently estimated within the field area and can be recovered using existing wells and a small number of infill wells. Proven and Probable reserves are estimated at 8.0 mmbbls. Additional recoverable reserves which can be produced from hydraulically fractured wells add a further 13.8 mmbbls. Contingent Resources are also attributed to future potential water injection or other EOR schemes.

Cumulative historic production from the field has totaled only 4.8 mmbbls, most of that between 1956 and 1980 when Texaco were actively operating the field and during which time most of the field wells were drilled. Studies by various companies have concluded that the existing field has the immediate potential for roughly 40 routine simple work-overs, up to 20 recompletions and numerous possible hydraulic fracturing operations. Further areas of unswept and undeveloped oil pay could be developed with infill wells.

LGO has assessed the opportunity for an initial work-over programme aimed at improving the production from up to 50 existing wells and estimates that production can be raised to 450-500 bopd through work involving well clean out (sand removal), limited reperforation and the installation of additional electrical pumps (either beam and downhole PCP). A preliminary estimate of the cost of that programme, which could take 12 to 18 months to execute, is US$4 million.

During their operations Texaco hydraulically fractured 23 wells in the main Goudron Sands and a further 5 wells in the deeper Cruse equivalents. These wells had average production increases of between 5 and 10 fold after fraccing and it is anticipated that with modern hydraulic fraccing techniques, especially on new wells, better results can be obtained due to the significant advances in technology over the last 50 years.

Additional potential in deeper reservoirs and in underexplored portions of the concession add considerable further reserves potential. There is also potential for gas production which was previously unexploited due to the absence of a local market, but which could now be exported through existing infrastructure. Petroleum rights under the IPSC extend down to 5,000 feet subsea. The current term of the IPSC has 8 years remaining and the IPSC contains an extension period of 10 years running to 2030.

GEPL was incorporated in March 2011 as a special purpose vehicle in Trinidad to hold the IPSC option rights and had no accounts.

The assignment of the IPSC requires the approval of both Petrotrin and the Trinidad and Tobago Ministry of Energy and Energy Affairs. The application process was started in August and it is anticipated to take up to a further 3 months to conclude.

Mr. Alex Almandoz, a Trinidadian with 26 years of experience in the oil and gas industry and owner of Altech Services Limited, a local rig service company, has been appointed as LGO's Country Manager in Trinidad and will be directly responsible for all LGO activities.

In early 2011 the Company indicated that it wished to increase its portfolio in Trinidad. Since that time LGO has acquired leases to 815 acres of previously unexplored prospective land adjacent to the Icacos Field where the Company owns a 50% interest, and has farmed-in to the Advance Oil Company (Trinidad) Limited Moruga North leases with a view to drilling up to 9 wells in the next two to three years. The first well is anticipated to be spudded in spring 2012. The acquisition of the rights to be assigned the operatorship of the Goudron Field considerably enhances the Company's position in Trinidad.

Consideration:

·; LGO has paid Sorgenia US$1 million to acquire 100% of the outstanding shares in GEPL

·; Contingent on the successful completion of the transfer of the IPSC to LGO a further consideration of US$1 million will be paid to Sorgenia International BV for the geological, reservoir engineering and environmental studies conducted on the field

·; Conditional payments to Sorgenia International BV will also be payable when and if field production reaches 1,000bopd (US$1 million) and 2,000 bopd (US$2 million). Based on initial field redevelopment plans these levels will be reached in early 2013 and in 2014 respectively

·; A payment of up to a maximum of US$4 million will also be due on transfer of the IPSC

The Company also announces that it has secured a three year Equity Line Facility ("ELF") of up to £5 million with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"). The ELF has been arranged by First Columbus LLP ("First Columbus"), Dutchess's joint venture partner in the UK.

The ELF offers the Company ongoing access to capital as it enables the Company to obtain funding from Dutchess at any time during the next three years by way of subscription for new ordinary shares in the Company. Subscriptions will be priced at a 5 per cent discount to the market price and will take place at timings and intervals and in sizes solely determined by the Company, subject to the agreed mechanisms specified under the ELF.

The ELF may be drawn down in tranches linked to the Company's average daily trading volume in the three days prior to the notice of draw down or in other specified amounts. The Company is able to specify a minimum acceptable price for each tranche to prevent shares being sold in the market at an unacceptable discount. Currently LGO has not drawn on the ELF facility.

The Company expects to provide an update on its ongoing operations in Spain shortly.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted to have been able to acquire the rights to the Goudron Field since we feel this offers an exciting opportunity for LGO to make a step change in its growth in Trinidad through both incremental production and exploration.

Experience gained elsewhere, especially in Spain, will allow us to maximize the opportunities in this field. The simultaneous acquisition of the comprehensive recent studies allows us to move very quickly to exploit these opportunities. The provision of a standby equity facility will provide access to working capital if needed. "

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 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

Notes to Editors:

In addition to the assignment of the Goudron IPSC, the Company holds the following assets in Trinidad.

Icacos Field: a 50% interest in the Private Petroleum Licence area covering a total of 1,900 acres including the producing Icacos oilfield in the Cedros Peninsula onshore in south western Trinidad. The Icacos Field is operated by Primera Oil and Gas Limited, now a subsidiary of Touchstone Exploration Inc. Production from the Miocene Upper Cruse Formation in the field is currently derived from just three of the 14 wells and year to date production has averaged 18 bopd net to LGO's interest. A production enhancement programme aimed at lifting gross production to over 150 bopd has been under consideration for some time. Deeper exploration targets within the East Venezuelan Basin below the shallow producing Cruse are also of significant interest.

Cedros Leases: LGO holds a 100% interest in a number of new leases totaling 815 acres to private lands adjacent to the Icacos Field to which the subsurface rights have been assigned to the Company. Additional areas are under negotiation and once these are secured a Private Petroleum Licence will be applied for from the Ministry of Energy and Energy Affairs covering all these leases, with work anticipated to commence in 2012.

Moruga North: in July 2011 the Company signed a binding Heads of Agreement with Advance Oil Company (Trinidad) Limited ("AOCL") to farm-in to AOCL's leases in the Moruga area of central southern Trinidad totaling 1,223 acres of partially explored lands between the West Moruga and Innis, Antilles and Trinity fields. LGO has committed to the drilling of three exploration wells and up to six appraisal/development wells over a 3 year period. The Company will be assigned an initial 49% interest and operatorship in the leases and anticipates earning in to between 33 % and 45% of the reserves and production through the completion of the agreed work programme. The location of the first exploration well has been selected and it is planned to spud that well in the spring of 2012. In addition, LGO will work over two existing productive wells, MN-44 and MN-209, which are hoped to be on stream by end 2011 and to provide gross production of 120 bopd.

About Dutchess Capital

Dutchess Capital was founded in 2000. Since then, Dutchess has been a market leader and innovator in providing ELFs and other unique financing structures for publicly-traded companies.

Dutchess has transacted over $2 billion in ELF commitments globally. Dutchess has over 10 years of experience assisting companies throughout the process, as well as the financial wherewithal to fund the company throughout the entire commitment. Dutchess sources worldwide investment opportunities, with offices in Boston, New York, London, Seoul and Beijing.

For more information, visit: www.dutchesscapital.com

Enquiries

Leni Gas & Oil plc

Panmure Gordon

Shore Capital

Pascal Keane +44 (0) 20 7408 4090

Jerry Keen

Pelham Bell Pottinger

Beaumont Cornish Limited

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