Spain Production Offtake Heads of Agreement - BP

LENI GAS & OIL PLC

("LGO" or "The Company")

06 May, 2010

Spain Production Offtake Heads of Agreement with BP

Leni Gas & Oil plc (LGO), the AIM listed international Oil and Gas Exploration, Development and Production Company, today announces the completion of a Heads of Agreement with BP España ("BP") including its subsidiaries to negotiate a crude oil sales agreement to offtake the Company's current and future Spain production to BP's Castellón refinery in eastern Spain.

Agreement Terms

LGO and BP have been exploring the possibility of a crude oil offtake agreement for the delivery of all oil produced by the Company's wholly owned subsidiary in Spain for consumption at the BP Castellón refinery located on the east coast of Spain. The Heads of Agreement sets out the non-binding obligations and parameters for a proposed crude oil sales agreement to offtake the majority of the Company's Spain crude production to BP Castellón and how the parties will work together with a view to consummating the proposal.

The proposed agreement shall extend for a minimum duration of five years. This shall include the currently producing Ayoluengo oilfield and future production from other development assets across the Company's petroleum production and exploration acreage in northern Spain which covers an area of over 550 sqkm.

Delivery schedule is expected to be steadily increased in parallel with the development programs of LGO to increase production from all of the current and future production assets in Spain. The delivery pricing shall be at a premium to current pricing and shall be formula driven based primarily on spot commodity price index and the crude oil specification from the various producing assets.

Both companies are currently undertaking feasibility studies to engineer the facilities upgrades required to commence crude oil offtake in Q4 2010.

David Lenigas, Executive Chairman, commented:

"We are delighted to have signed a heads of agreement with BP to negotiate a long term crude oil sales agreement to offtake our current and future production in Spain."

"This is further evidence of LGO's progress with its Spain operations to expand the infrastructure for supporting high production volumes, and which has been recognised by one of the world's largest oil and gas companies."

"The potential tenure of this agreement provides LGO with long term revenue security in Spain, and shall allow us to accelerate the financing and development of both current and future producing assets in Spain. The completion of the long term offtake agreement with BP will be a milestone for the Company, which shall underpin the value of LGO's Spain assets and compliment our development plans to accelerate multiple production assets."

"Work is near completion on updating the total Spain resources and exploitation plan subsequent to a comprehensive geological re-interpretation of our acreage using new seismic re-processing. The re-interpretation has identified additional hydrocarbon formations in the Lower Jurassic in addition to our existing production formations in the Lower Cretaceous and Upper Jurassic."

The development plan to maximise the exploitation of the overall Spain resources is also been revised in consultation with the Spain Government and oilfield service companies to increase the capacity of the processing facilities and ensure all methods of enhanced oil and gas production are applied to maximise recovery of all identified hydrocarbon formations."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Fraser S Pritchard, Executive Director for Leni Gas & Oil Plc (member of the SPE) who has over 20 years relevant experience in the oil industry.

Enquiries:

Leni Gas & Oil plc

David Lenigas, Executive Chairman

Fraser Pritchard, Executive Director

Tel +44 (0) 20 7016 5103

Beaumont Cornish Limited

Roland Cornish / Rosalind Hill Abrahams

Tel +44 (0) 20 7628 3396

Mirabaud Securities Limited

Rory Scott

Tel +44 (0) 20 7878 3360

Pelham PR

Mark Antelme / Henry Lerwill

Tel + 44 (0)20 7337 1500

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, Trinidad and Malta with significant play upside using similar strategies to leverage 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 programs.

GLOSSARY

bo = barrels of oil

bopd = barrels of oil per day

LGO = Leni Gas & Oil plcs

offtake = a term used by oil companies to refer to the removal of oil from the place of production for marketing

sqkm = square kilometre