Spanish Divestment

For Immediate Release (Embargoed until 7 am)

18 July 2012

LENI GAS AND OIL PLC

("LGO" or the "Company")

Spanish Divestment

LGO today announces the signing of a definitive Sale and Purchase Agreement (SPA) for the divestment of its Spanish assets for a cash consideration of €8 million. A non-refundable deposit against the consideration has been paid by the buyer to obtain exclusivity to complete the transaction by the 27 July 2012.

Neil Ritson, Chief Executive commented:

"The sale of Spain provides LGO with a strong balance sheet and enables the Company to focus on significantly increasing its oil production in Trinidad which will now be the focus of operations. LGO has several development projects and step-out exploration opportunities within Trinidad's prolific, but under explored, onshore basins. We are very excited to be able to participate in the vibrant onshore oil development activities in Trinidad to which LGO's expertise and capital can be effectively applied. "

An SPA has been signed with a private buyer to which LGO will sell all the outstanding shares in Cyprus registered company, Leni Investments CPS Limited, a company which holds 100% of the shares in Compania Petrolifera de Sedano S.L. (CPS). CPS is the sole licence holder to the La Lora Production Concession and the Basconcillo, Huermerces and Valderredibles Exploration Licences in Northern Spain.

The consideration of €8 million is to be paid in cash on completion. A €200,000 non-refundable deposit against the consideration has been committed by the buyer to obtain exclusivity to complete the transaction by the 27 July 2012. There are no outstanding due diligence matters and the sale is conditional only on the payment of the balance of the consideration and the transfer of the share ownership. A daily penalty of €50,000, in addition to the consideration, applies if completion does not occur on or before the 27 July 2012, accruing up until the 31 August 2012 when the SPA will be automatically terminated.

Proceeds from the transaction will be used in the Company's existing operations, notably in Trinidad where an active work programme on the Goudron Field is now underway and additional work is also planned in Moruga North and in the Cedros Peninsula.

In light of LGO's recent success with the work over of five wells on the Goudron Field the Company has decide to proceed initially with the acquisition of the Field on a 100% basis. LGO is continuing discussions with Range Resources regarding its potential participation on Goudron, under the previously announced Heads of Agreement with Range Resources. LGO will update the market on any further developments in due course. The Competent Persons Report on the reserves of the Goudron Field, which was commissioned from Challenge Energy Limited, is expected to be published in August.

Additional Information required pursuant to AIM Rule 12

a) Sale of the shares of Leni Investments CPS Limited, to RAVI Corporate Sociedad Limitada registered in Spain.

b) Leni Investments CPS Limited, a Cyprus registered company, owns 100% of the shares of CPS which in turn is the beneficial owner of all of LGO's Spanish assets including the Ayoluengo and Hontomin oilfields and the Basconcillos, Huermerces and Valderredibles exploration Licences.

c) In the year to 31 December 2011 CPS posted a net loss of £2,356,492

d) The assets of CPS are held in the LGO consolidated accounts at a value of £8,240,454

e) Total consideration of €8 million to be paid in cash at completion, less a non refundable deposit of €200,000 already received

f) LGO will now focus operations on its higher growth assets in Trinidad where it is shortly to assume operatorship of the Goudron Oilfield and the Moruga North Leases, and where the Company already holds oil and gas land leases in the Cedros Peninsula and a 50% interest in the Icacos Oilfield.

g) All LGO directors will resign from CPS at completion and none will hold any future role or service contract associated with the assets being sold.

h) Sale proceeds will be applied to ongoing operations of the Company, largely in Trinidad.

i) Not relevant

j) No other relevant information

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, 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

Beaumont Cornish Limited

Old Park Lane Capital Plc

Shore Capital

Joint Broker

Pascal Keane +44 (0) 20 7408 4090

Jerry Keen (Corporate Broking)

Pelham Bell Pottinger