Operational Update

For Immediate Release (10am GMT)

30 June 2011

LENI GAS AND OIL PLC

("LGO" or the "Company")

Operational Update

Leni Gas & Oil plc, today announces significant production enhancement results on its 100% owned oil fields in Northern Spain and considerable progress on its wider portfolio ahead of the Annual General Meeting.

Highlights

·; LGO's wholly owned Spanish subsidiary Compañía Petrolífera de Sedano, S.L. ("CPS") has now recompleted five of the planned seven wells in the intervention programme at the Ayoluengo Field which commenced in late April.

·; Production yesterday was 303 bopd representing more than a 100% increase over pre-intervention levels and final operations to bring on production two further wells will be completed shortly.

·; New reservoir zones perforated following electric logging exceeded the pre-programme estimate by 100%.

·; The highly productive Hontomin-2 well is yet to be perforated over a new 40 metre reservoir zone as additional equipment is being mobilised to clean the well, in the interim the well has been put back on production at approximately 33 bopd.

·; Operations have resumed successfully in the Gulf of Mexico with gross average daily production of 956 mmscf of gas and 382 bbls of oil (546 boepd) during June at Eugene Island-184 where LGO holds a 6.04167% beneficial interest.

·; LGO is in the final phase of negotiations to farm-in to leases totalling 1200 acre in Trinidad in order to recomplete existing producing wells and to drill three exploration wells and up to six appraisal wells.

·; Following the recent announcement of an extension of the Malta Area 4 PSC and Mediterranean Oil and Gas plc's ("MOG") farmout to Dominion Petroleum Limited ("Dominion") an additional 3D seismic programme covering 1000 km sq is planned for 2011.

Workover Programme, Spain

A well intervention programme targeting six of the higher performing wells in the Company's Ayoluengo Field in Northern Spain commenced on the 26 April 2011and to date wells Ayo-4, 5, 32, 36, 37 and 46 have been logged and all but well Ayo-32 have been returned to production. Additionally, a contingent well, Ayo-22, was also logged and re-perforated with the intention of creating a dedicated fuel gas supply well. Final completion of this well will be carried out at a later date to meet expected future gas supply requirements.

In all, 235 metres of perforations have been carried out; 144.6 metres of which were over previously producing zones which was directly comparable with the pre-programme estimate. A further 90.4 metres of new reservoir zones, not previously produced, were also perforated exceeding the pre-programme estimate of 45 metres by over 100% (excluding an estimate of 40 metres at Hontomin-2, yet to be carried out).

The Société de Maintenance Pétrolière 80-tonne workover rig has now been demobilised and final work will be completed by the Company-owned Cardwell rig.

Performance at well Ayo-37 is being monitored prior to the planned installation of an electric down-hole progressive capitation pump; however, current production from that well, which has averaged over 190 bopd since recompletion, does not merit immediate further intervention. Pre-recompletion production in 2011 at Ayo-37 averaged just over 18 bopd.

Newly recompleted wells continue to clean-up and the oil production performance of several wells, including Ayo-46, has been consistently improving. Based on previous experience in the field this process is likely to continue for some weeks.

Some of the wells in the programme have been found to have lime scale build-up and accumulated wax deposits, which are believed to have significantly reduced production capacity in these wells to date. These findings, and the new production performance of the field, especially Ayo-37, support the requirement for further down-hole treatment. We have therefore initiated a stimulation design study to further enhance the production capacity. Once field tested this approach is likely to be applicable to other low producing wells which have received little recent attention. This stimulation work is expected to be undertaken in the third quarter of 2011.

In addition to wells on the Ayoluengo Field, the high producing Hontomin-2 (H-2) well at the Hontomin Field is being worked over with the intention of opening some 40 metres of previously untapped reservoir at a depth of 1350 to 1390 metres. On re-opening the well, which was shut in during March 2011, debris was found above TD and requires additional equipment to be mobilised to clean the well before perforating. When the well was reopened it produced approximately 100 bbls of oil under its own pressure and future production potential of in excess of 200 bopd is expected. The well is currently producing approximately 33 bopd from the original perforations pending further planned work to clean the well bore and open the extensive new reservoir zone.

The well intervention programme was planned to last between 60 and 75 days. At present, day 63, the remaining work involving third-party contractors is limited to perforations at H-2 and it is hoped to complete this within the next 10 days. After that the Company-owned rig will complete any outstanding work in the main field to restore full production.

With further work still to be completed the overall production rate has already increased by over 100% to 303 bopd (29 June 2011) and it is anticipated that after the completion of all the wells production will be at the upper end of the initial target of 300 to 500 bopd.

Trinidad

LGO is currently concluding negotiations to farm-in to an existing 1200 acre lease in the central Southern Basin onshore Trinidad to drill three exploration wells and to recomplete and raise production from existing wells on the lease. The farm-in also envisages the drilling of two appraisal wells for each successful exploration well. Once final terms are agreed it is anticipated that drilling will commence within 6 months.

Production from the Icacos Field, where LGO holds a 50% interest, has been steady at an average gross rate of 36 bopd, year to date. Touchstone Exploration Inc ("Touchstone") announced in May that it had acquired the 50% interest in the Icacos Field formally held by Primera Oil & Gas Limited and that the transaction was expected to close by the end of July 2011. LGO has held preliminary discussions with Touchstone with a view to ensuring a smooth transition of the operations.

The Company has also signed new land leases for the subsurface rights to 815 acres of previously unexplored lands in the Cedros Peninsula adjacent to the existing Icacos Production area. These leases require a minimum work programme of geological studies and have no fees other than net production royalties in the event of success. Further leases are being negotiated with a view to applying for a new Private Petroleum Licence in due course. Field operations are expected to commence in early 2012.

USA Gulf Coast

New operator Marlin Energy LLC ("Marlin") successfully restored production from the Eugene Island-184 platform in the Gulf of Mexico, where LGO holds a 7.25% working interest (6.04167% beneficial interest), on the 2 June 2011. All previously producing wells have been re-started successfully with the field producing for an average of 18 hours per day in June at a gross average daily production rate of 956 mmscf gas and 382 bbls oil (546 boepd). Marlin is studying the opportunities to recomplete the A8 well at the T1-sand level and carry out other potential well sidetracks to increase production.

Malta

The Area 4 PSC in which LGO holds a 10% interest has been extended by the Maltese Government to 18 January 2013 with a commitment to acquire a further 1000 sq km 3D seismic survey in order to define the final location for the drilling of the first exploration well. MOG has subsequently farmed down its 90% interest to Dominion who will assume the operatorship and take a 75% interest in the PSC.

It is anticipated that the additional long offset 3D seismic, designed to finalise a well location, will be acquired in late 2011 to permit interpretation and preparation for drilling before January 2013. The cost to LGO of the new seismic of is estimated to be US$760,000.

Neil Ritson, Chief Executive commented:

 "We are extremely pleased with the success of the well improvement work in Spain and I now confidently expect us to meet our initial estimate of 500 bopd later this year. We have also learnt a great deal about the condition of the wells and this will allow us to optimise future work, greatly enhancing future production capacity. We are well on track to meet our 2011 objectives and are pleased with the progress being made in Trinidad and by our partners in both the Gulf of Mexico and Malta."

Presentation to be Added to Company Website

Following a presentation of LGO's recent activities and plans, which is to be given at the Annual General Meeting on the morning of the 30June 2011, that presentation will be added to the Company's website: www.lenigasandoil.com

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.

Enquiries:

Leni Gas & Oil plc

David Lenigas, Executive Chairman

Neil Ritson, Chief Executive Officer

Tel +44 (0) 20 7016 5103

Panmure Gordon plc

Katherine Roe / Hannah Woodley

Tel +44 (0)20 7459 5744

Beaumont Cornish Limited

Roland Cornish / Rosalind Hill Abrahams

Tel +44 (0) 20 7628 3396

Pelham Bell Pottinger

Mark Antelme / Henry Lerwill

Tel + 44 (0)20 7861 3232

NOTES TO EDITORS

Leni Gas & Oil Plc is an international oil and gas exploration, development and production company headquartered in London, trading on the London Stock Exchange's AIM index. LGO's strategy is to acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial, commercial, and technical expertise.

LGO operates a low risk portfolio of production expansion assets in the US Gulf of Mexico, Spain and Trinidad, and holds non-operated exploration acreage Malta. LGO's assets have significant play upside using strategies which leverage novel extraction technologies and proven production enhancement techniques. LGO specifically targets near term production with upside exploitation potential and manages its portfolio to ensure all assets have accelerated incremental reserves and production enhancement programmes.

GLOSSARY

3D = three-dimensional

bopd = barrels of oil per day

bbls = barrels

boepd = barrels oil equivalent per day

H2S = hydrogen sulphide

mmcf = million cubic feet

PSC = Production Sharing Agreement

sq km = square kilometres

TD = total depth