Talks on potential partnership in Spain terminated

For Immediate Release 4 June 2014

LENI GAS AND OIL PLC

("LGO" or the "Company")

LGO terminates talks on potential partnership in Spain

LGO today announces that further to its announcement of 18 March 2014 it has now terminated negotiations with Pansoinco s.r.l. ("Pansoinco") over a possible partnership in LGO's oil and gas assets located in Northern Spain, including the producing Ayoluengo Field and the prospective Hontomin Field development. 

The Company is no longer actively seeking further expressions of interest. Immediate plans for the Spanish assets include the anticipated award of a Production Concession at Hontomin in 2014 and additional well maintenance and stimulation of the producing wells at Ayoluengo Field. The Ayoluengo Field remains profitable and the Company is confident that its 2014 production forecast will be met. LGO continues to be committed to fully optimise the value of Spain and strategic alliances have not been ruled out for the future.

Neil Ritson, the Company's CEO, commented;

"In the light of the recently announced successful drilling and production results in Trinidad, the Company has reassessed the benefits of the proposed partnership and is now firmly of the opinion that greater value can be obtained from the Spanish assets through LGO investing in additional well capacity in the period of 2016 to 2020, at a time when there is expected to be free cash flow available from the Company's operations in Trinidad."

LGO also confirms that it remains in discussion with Maxim Resources Inc ("Maxim") concerning the Heads of Terms agreed in March 2013 and extended to 31 May 2014. Following the conclusion of Maxim's court case in Trinidad concerning its claims in the South Erin Block the Company now expects to report further on this matter shortly.

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

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