Unaudited Interim Results to 30 June 2014

26 September 2014

LENI GAS AND OIL PLC

("LGO" or the "Company")

Unaudited Interim Results 30 June 2014

HIGHLIGHTS

FINANCIALS

· Revenue for period increased by 40%, to £3,230,000 (1H 2013 £2,308,000).

· Gross profit for period increased by over 150% to £797,000 (1H 2013 £310,000).

· Pre-tax group loss for period of £2,489,000 (1H 2013 loss of £1,389,000).

· Pre-tax group loss excluding exceptional legal costs, for the period was £1,242,000 (£1,304,000 in 1H 2013)

OPERATIONS

· The Company reached an all-time production record of 1,080 bopd on 24 September 2014

· Company-wide sales, net to LGO's interest, totalled 64,754 barrels of oil (1H2013: 45,969 barrels oil), a 41% increase over the period.

· Production increased at the Goudron Field in Eastern Trinidad from a month average of 297 barrels of oil per day ("bopd") for December 2013, to 420 bopd, for June 2014. Goudron sales in the period totalled 45,530 barrels of oil.

· On 28 April LGO spudded the first of the approved 30 new development wells at the Goudron field, GY-664.

· Subsequently GY-664 was placed on production on 30 May at a constrained initial rate of 240 bopd.

· Two further wells, GY-665 and GY-666, were spudded by the end of the reporting period and drilling operations have continued uninterrupted since April.

· Additional infrastructure has been built at Goudron, including a permanent camp, telecommunications and tank capacity so as to support the ongoing drilling and production operations.

· An agreed program of well reactivation and clean out has been pursued at the Ayoluengo Field in order to restore production to 2013 levels.

· During the reporting period Spanish oil sales from the Ayoluengo Field totalled 16,747 barrels of oil.

COMMERCIAL

· LGO continues to pursue access to the largely unexplored Cedros Peninsula in southwest Trinidad and has applied for a Private Petroleum Licence for its 100% owned leases.

· Under the Heads of Agreement with Beach Oilfield Limited ("BOLT") several agreements have been executed to obtain and reinterpret all existing data in the Cedros Peninsula. Additional surface geochemical data has also been acquired in partnership with BOLT.

· Immediately following the end of the period, LGO signed a Letter of Intent to acquire the Trinity-Inniss IPSC from Rex Caribbean. The two parties are actively working towards closing the transaction as soon as practical.

· During the period LGO's Spanish business submitted additional geological information in support of its application for the Hontomin Concession and now hopes for the award by end year.

CORPORATE

· The Company continues to use its short-term loan facility entered into with YA Global Master fund to provide working capital to progress the Trinidad program.

· Following the reporting period LGO raised gross proceeds of £7 million in new equity through the issue of 200 million ordinary shares at 3.5 p per share to provide capital to support the ongoing development of its Trinidad business.

· LGO's legal case against Mediterranean Oil and Gas plc ("MOG") was heard in the High Court in March. The Court failed to find for LGO and costs in the action were awarded to MOG (£1.2m). Following the reporting period, all costs have been settled and the action closed.

· Following the reporting period James Thadchanamoorthy was appointed to the Board as Chief Financial Officer.

· In August David Lenigas, the Company's chairman and Founder, retired from the Board and was replaced as Chairman by Steve Horton, previously a non-executive director. Two additional non-executive Directors; Iain Patrick and Michael Douglas, also joined the Board at that time.

TARGETS TO END 2014

· Bring on full production all of the remaining newly drilled wells at Goudron.

· Drill a further four development wells at Goudron.

· Complete the Trinity-Inniss acquisition.

· Continue ongoing wellbore clean-up activities in Ayoluengo.

· Progress the BOLT transactions.

· Lodge the formal application with the Spanish authorities for a 10 year extension of the La Lora (Ayoluengo) Concession to come into effect in January 2017.

NOTES

All figures are net to LGO unless otherwise stated.

 Neil Ritson, CEO, commented: "The first half of 2014 has been truly transformational at LGO as we have now clearly demonstrated the huge potential that the Goudron Field and our wider portfolio in Trinidad can deliver. The successful drilling of the first five of our thirty well program, and the impressive flow rates these new wells have achieved, illustrates the impact that modern drilling and completion practices will have on this field which holds up to 60 million barrels of contingent resources which we will seek to access over the coming years. The milestone of 1,000 barrels oil per day is also very significant for the Company.

I am delighted with the performance of my team and the assets we hold. Goudron will remain our focus in 2014, but as we move into 2015 we expect to accelerate work on other elements of our portfolio, which also have significant untapped potential. Trinidad has all the right elements for the Company to continue to grow rapidly and I look forward to reporting on that progress in due course."

OPERATIONAL REVIEW

A summary of activity by country of operations during the reporting period follows:

TRINIDAD

The Company, through various wholly owned subsidiaries, holds interests in two producing fields; Goudron and Icacos, and in a number of private petroleum leases where production has yet to be established. LGO has also negotiated various agreements with third parties to farm-in or otherwise acquire interests in additional properties in Trinidad. Trinidad is the principal focus area for the Company because it represents an excellent fit to the corporate strategy of identifying, acquiring and developing assets within the oil and gas sector which are seen to offer an opportunity to unlock significant value through a combination of financial, commercial, and technical expertise.

Goudron

In October 2012 LGO acquired, through its wholly owned subsidiary, Goudron E&P Limited ("GEPL"), the Incremental Production Service Contract ("IPSC") for the Goudron Field in the Eastern Fields Area in south eastern onshore Trinidad. Under the terms of the IPSC the Company acts as a service contractor to the Petroleum Company of Trinidad & Tobago ("Petrotrin") who reimburse LGO on the basis of the oil sales and realised oil price linked to the West Texas Intermediate benchmark.

Oil produced at Goudron is stored in sales tanks at Tank Battery 134 before being measured and pumped into the Petrotrin owned pipeline adjacent to the field, which carries the oil directly to the Pointe-au-Pierre refinery in western Trinidad. To accommodate rising production volumes, new sales tanks were constructed and commissioned in August 2013 to allow production of up to 530 barrels of oil per day (bopd) to be handled daily. An additional sales tank with capacity up to 2,000 barrels has been constructed and at the time of this report is being commissioned to accommodate the rising volume of oil sales from the field. Longer-term the installation of a Lease Automatic Custody Transfer (LACT) meter is planned to handle anticipated production from the field. Oil quality at Goudron is consistently high with an average export density of approximately 37 degree API.

A total of 70 wells have now been reactivated, from a total stock estimated to be approximately 90 accessible and reusable wells. The majority of these wells are equipped with beam pumps and are now connected by flow lines to the bulk storage facilities that have been renovated at Tank Battery 207.

Security, communications, accommodation, roads and produced water handling facilities have all been brought up to date. The permanent camp facility with accommodation, offices and workshops was commissioned in March and field-wide telecommunications were successfully installed in April.

The final Certificate of Environmental Compliance ("CEC") for 30 new development wells and a 2,000 barrel sales tank was issued on 13 January 2014. Ground water monitoring wells were installed using an adapted work-over rig as a requirement of the CEC and approved by the Water and Sewage Authority prior to the mobilisation of the drilling rig. Drilling rig selection and contract negotiations were completed in early 2014 and the first new development well, designated GY-664 was spudded on 28 April 2014 using Well Services Rig 20. The second well, GY-665, was subsequently spudded on 28 May 2014, and the third well GY-666 was spudded on 16 June.

Well GY-664 reached total depth on 13 May 2014 at a depth of 4,212 feet. The well successfully intersected with the three planned reservoir intervals in the Goudron sandstones of the Mayaro Formation, the Gros Morne sandstones of the Moruga Formation and a sandstone in the Lower Cruse Formation. Full petrophysical log analysis was conducted and it was decided to complete the well as a Gros Morne producer over an interval of 278 feet of net oil pay. Further intervals of oil pay were identified in the Goudron sandstones totalling 192 feet and a further 87 feet in the Lower Cruse. The Goudron sandstones were cased and will be completed for production in this well at a later date. The Lower Cruse was also considered producible, however, flow rates from that interval which was somewhat silty were considered uneconomic at this location. The well was perforated and placed on production on 30 May 2014 at an initial rate of 240 bopd through a 7/32-inch choke at a flowing pressure of approximately 660 psi.

The initial flow rate from well GY-664 was some four-times the historic average flow rate achieved during the prior development of the field up to 1986, which was approximately 65 bopd and exceeded any previous well on the field. This strongly supports the Company's belief that modern drilling and completion practices would greatly enhance the production performance of wells in the field. Modern electric logs and petrophysical analysis are revealing greater amounts of net oil sand in the key reservoirs and this is likely to have an impact on oil-in-place estimates. The Company plans to incorporate the results of on-going production and drilling into the various studies prior to commissioning a new Competent Persons Report in the second half of 2014.

Prior to the end of the reporting period the second well, GY-665, reached a TD of 2,750 feet in the base of the Gros Morne sandstone and a decision was taken to complete the well in the Gros Morne without deepening to the Lower Cruse secondary target in this well. GY-665 encountered 270 feet of net oil pay in the Goudron sandstones and 256 feet of net oil pay in the Gros Morne, confirmed by petrophysical analysis.

Up to the date of this report a total for five new wells have been drilled to TD. Three have been completed and two are awaiting completion. The Well Services Rig 20 has been moved from the drill pad and a work-over rig has been moved on to the location to carry out the completion of the wells. GY-668 will be completed next, followed by GY-667, the final well for completion on this pad. GY-667 will test the Lower Cruse as planned prior to placing the well on long-term production. Results for the programme to date are giving in the table below.

All depths are quoted as measured depth in feet below Rotary Table

np = not penetrated

Cedros Peninsula

Elsewhere in Trinidad, through its local subsidiary Leni Trinidad Limited ("LTL"), LGO holds a 50% interest in the producing Icacos Field in the Cedros Peninsula, operated by Territorial Services Group ("Territorial"), a subsidiary of Touchstone Exploration Inc. Production has been maintained close to historic levels, 16 bopd net to LTL's interest. LGO is not aware of any plans by the operator to carry out any non-routine activities in the remainder of 2014.

In the wider Cedros Peninsular, LTL holds a number of private petroleum leases totalling about 1,750 acres and is in the process of obtaining a private petroleum licence from the Trinidad and Tobago Ministry of Energy and Energy Affairs ("MOEEA"), in order to carry out a number of field surveys with a view to eventually drilling exploration wells. LGO has also entered into a Letter of Intent with Beach Oilfield Limited ("BOLT") to cross-assign the interests of the two companies within the Cedros Peninsula at stratigraphic levels below 7,000 feet. LTL will be the operator of the combined leases and will hold a 100% working interest, with BOLT receiving an overriding royalty on any future production revenues.

As part of the BOLT agreements LTL has hired Dr Krishna Persad as a consultant on a retainer and has acquired from BOLT all the relevant seismic, well and historical report data available in the Cedros area. The Company has also obtained a licence to the legacy 3D seismic survey that covers much of the Cedros Peninsular and has commissioned a soil geochemistry survey to localise areas of micro-seepage associated with entrapped oil in the subsurface. Those data have now been collected and the samples sent to the USA for specialist analysis and interpretation. All the available data will be integrated and interpreted during 1H 2015 prior to making any decisions on drilling.

Trinity-Innis

On 16 July 2014 LGO entered into a binding Heads of Agreement ("HOA") to acquire the IPSC contract to the Trinity-Inniss Field currently operated by Fram Exploration (Trinidad) Limited ("FRAM") from Caribbean Rex Limited by acquiring for US$5 million all the issued share capital in FRAM. The agreement, which is subject to due diligence and the signature of a sale and purchase agreement ("SPA") between the parties, will also be subject to final approval by the Petroleum Company of Trinidad and Tobago ("Petrotrin") and the MOEEA.

The Trinity-Inniss Field covers an area of 810 acres and lies about 20 kilometres west of the Goudron Field in the south-eastern part of onshore Trinidad. The fields were discovered in 1956 and developed by Texaco contemporaneously with the nearby Goudron Field. A total of 134 wells were drilled and production to-date has totalled 23 million barrels of oil ("mmbbls") including a partial water-flood. The field is currently producing from about 25 active wells with total production of approximately 140-150 bopd. LGO has determined that up to 20 additional wells could be reactivated on the field giving an early increase in production. A CEC for 12 new wells and 50 side-tracks from existing wells has already been approved for the field and LGO envisages that drilling could get underway in 2015.

At the time of this report due diligence was largely complete and discussions were well advanced as to the SPA and it remains likely the transaction can be successfully closed in 2014. The provisionally agreed completion date of 27 September has been revised by mutual agreement between the parties and completion is currently anticipated to occur in October.

Other Trinidad

The Company continues to pursue its strategy of increasing its footprint in Trinidad, and in March 2013 signed a heads of agreement with Maxim Resources Inc. ("Maxim"), to collaborate on oil field developments in the South Erin Block. The agreement envisaged that should Maxim be successful in acquiring control of the South Erin Block, LGO will invest in further developing drilling in the producing Jasmin Field, and would become field operator and hold at least a 50% working interest. Subsequent to end-year 2013, LGO has been advised that Maxim have settled its claim for cash. The 2013 heads of agreement has now expired. As part of the agreement LGO can recover the CAD$75,000 option payment made to Maxim and is in the process of doing so.

In 2013, LGO tendered for a Full Tensor Gravity survey to be flown over the entirety of southern Trinidad to assist in its ongoing operations and to look for additional investment opportunities. A contract has been signed with ARKeX Limited ("ARKeX") to fly the survey in late 2014. It was originally envisaged that LGO would sponsor the survey and seek partners to fund its cost, however, in discussions between ARKeX and the MOEEA an alternative model has suggested where by the survey is acquired by ARKeX as a group or multi-client survey. Discussions are continuing in order to obtain all necessary approvals and expedite the acquisition of the data.

During the reporting period Trinidad oil sales totalled 48,007 barrels (1H2013: 29,790 barrels).

SPAIN

LGO holds a 100% ownership through its wholly owned subsidiary, Compañia Petrolifera de Sedano ("CPS"), in one production concession, La Lora (which contains the Ayoluengo producing oilfield), and three exploration permits; Basconcillos-H, Huermeces and Valderredible, in Northern Spain.

Oil sales during the year were made exclusively to Saint-Gobain Vicasa SA ("Saint-Gobain") under the contract renewed in 2013. Saint-Gobain uses the Ayoluengo crude oil as fuel oil in their factories within Northern Spain. Under the terms of the contract CPS receives a price linked to Brent with discounts to adjust for the fuel oil grade and impurities.

Production decline started to be seen in several key wells in the field during late 2013 and a remedial program of well clean-up involving the removal of accumulated scale and wax deposits was initiated. Chemical treatment of several wells and mechanical clean-out using the Company's workover rig has increased flow rates of oil and in one instance of gas as well. In addition, the number of shut downs has been greatly reduced and as a result, daily production has been stabilised at a rate of approximately 100 barrels of oil per day. Further well work to improve production performance of the Ayoluengo wells is planned during the second half for 2014.

During the first half of 2014 the Company's Cardwell work-over rig suffered from several breakdowns that required the fabrication of replacement parts and consequently saw the rig out of service for several extended periods. During periods when the rig was unserviceable all well work had to be deferred and there was a consequent reduction in production during those periods. The rig has now been fully repaired and well service work is being performed with the aim of restoring production to 2013 levels as soon as practical.

Recent re-evaluation of several old wells has led to agreement to reactivate a number of wells that are currently non-productive. Using the Company's own rig it is intended to drill out accumulated sand and scale from several wells and to expose perforations that have not been accessible for a number of years. Work on well Ayo-35 has already been completed and that well has recently been returned to production.

LGO signed a non-binding heads of terms with Pansoinco s.r.l in March 2014 who offered to make investments in the field in return for an equity share in production. That arrangement was subsequently terminated in June 2014 when a reassessment of the value of the Spanish portfolio was made following early successes in the Goudron redevelopment in Trinidad and a new prediction of free cash flow showed that greater value could be generated from Spain through investment in the period 2016 to 2020.

As previously announced, the most likely investment scenario for the Ayoluengo field is the drilling of a small number of side-track wells from the existing producing wells along the crest of the structure to access oil in zones that are known to be oil bearing, but from which oil is not believed to have been recovered to date. This investment remains conditional on further detailed studies which are now underway to be completed over the next year and critically on the granting of a 10 year extension of the La Lora Concession from January 2017. Work started in mid-2013 to prepare the licence extension application which is expected to be lodged with the Spanish administration by the end of November 2014.

In the Huermeces licence, the Company's application for the conversion of the Exploration Licence to a Production Concession remained under consideration with the Spanish authorities. In early 2014 the Ministry of Industry indicated that it was favourably considering the Concession application and as a final step requested a geological report be submitted. That technical report, written by an independent consultancy in Spain for CPS, was submitted in May 2014. This has led to further technical questions from the Spanish authorities and CPS are in the process of addressing those questions. Consequently at the time of this report we are awaiting final award of the Hontomin Concession.

There has been no work undertaken in the Basconcillos-H licence area where the Tozo-1 gas well is located. This project is dormant pending further studies of potential uses of the gas discovered in Tozo. A licence extension in the Valderredible licence is also pending approval. It has so far proved difficult to operate in a large part of the licences due to environmental restrictions within the National Park which covers much of the area. CPS's permits and concessions lie within the central portion of the Sedano trough within the Cantabrian Basin which is believed to have unconventional gas potential at depth. LGO considers that shale gas potential represents additional long-term potential value and plans to acquire further regional studies in 2014 to assess the scale of the potential. During the reporting period CPS acquired from former joint venture partner Sorgenia BV their comprehensive basin-wide study of the unconventional potential and are at present assessing this information prior to potentially inviting interest from third-parties.

During the reporting period Spanish sales totalled 16,747 barrels oil (1H2013: 16,179 barrels) exclusively from the Ayoluengo Field.

MALTA

In January 2013 LGO issued proceedings against Mediterranean Oil and Gas plc ("MOG") in the High Court of England and Wales alleging misrepresentation at the time of the sale of the Company's 10% interest in the Area 4 Petroleum Sharing Contract in Malta. LGO and its legal team prepared for trial through 2013 and into first quarter 2014. The trial was held between the 4th and 12th March. LGO's claim against MOG was not upheld and subsequently costs in the action were awarded against LGO (£1.2m). After taking further independent legal advice LGO decided not to lodge an appeal in the Court of Appeal. Following this reporting period, all costs in this action have now been paid and the matter is closed.

Neil Ritson

Chief Executive Officer

26 September 2014

Competent Person's statement:

The information contained in this document has been reviewed and approved by Neil Ritson, Chief Executive Officer for Leni Gas & Oil Plc. Mr. Ritson is a member of the SPE and Fellow of the Geological Society, an Active Member of the American Association of Petroleum Geologists and has over 35 years relevant experience in the oil industry.

GLOSSARY & NOTES

bopd: barrels of oil per day

CEC: Trinidad Certificate of Environmental Compliance

IPSC: Incremental Production Sharing Contract

MD: measured depth 

mmbbls: million barrels of oil

pay: A reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay.

TD: total depth

FINANCIAL STATEMENTS

GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2014

GROUP STATEMENT OF CASH FLOWFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

GROUP STATEMENT OF CHANGES IN EQUITYFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

1. Basis of preparation

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 30 June 2014 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2013. The figures for the period ended 31 December 2013 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 26 September 2014.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Leni Gas and Oil Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

2. Segmental analysis

2. Segmental analysis (continued)

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

2. Segmental analysis (continued)

3. Earnings per share

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:

As inclusion of the potential ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive, as such, a diluted earnings per share is not included.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

4. Called up share capital

The called up and fully paid share capital of the Company at 30 June 2014 is as follows:

Total share options in issue

No options were issued during the 6 months ended 30 June 2014.

As at 30 June 2014, the options in issue were:

Total warrants in issue

During the 6 months ending 30 June 2014, 30,237,737 warrants were issued at an average exercise price of 1.76p.

As at 30 June 2014, the warrants in issue were:

No warrants lapsed, no warrants were cancelled during the period 30 June 2014

1,000,000 warrants were exercised during the period 30 June 2014.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

5. Intangible assets

6. Property Plant and Equipment

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2014

7. Events after the reporting date

On the 16th July, LGO announced the signing of a binding Heads of Agreement to acquire a 100% interest of the producing Trinity-Inniss Field in south-eastern Trinidad, close to the Company's existing Goudron Field operations. LGO plans to acquire 100% of Fram Exploration (Trinidad) Limited, the company holding the Incremental Production Service Contract for the Petroleum Company of Trinidad and Tobago Limited owned Trinity-Inniss Field.

On the 17th July, LGO announced that the Company had raised £7 million before expenses, by way of a Company arranged placing of 200 million new ordinary shares at a placing price of 3.5p per share. This placing will enable the Company to accelerate the closing of the US$5 million Trinity-Inniss Oil Field transaction.

On the 31st July, LGO announced that it had agreed payment of the remaining costs arising from its High Court action against Mediterranean Oil and Gas plc over the sale of the Company's 10% interest in Malta Area 4.

MOG had reported its costs at over £1.5 million. A final settlement of £1.2 million was agreed, plus £16,437.50 of accrued interest. LGO had already paid £600,000 on account and paid the balance of £616,438 by 7 August 2014.

On the 7th August, LGO announced the appointment of James Adam Thadchanamoorthy to the Board of the Company as Chief Financial Officer.

On the 27th August, LGO announced a number of changes to the Board of the Company:

- Steve Horton was appointed as the Non-Executive Chairman of the Company.

- John Alexander (Iain) Patrick was appointed to the Board of the Company as Non-Executive Director.

- Michael Douglas was appointed to the Board of the Company as Non-Executive Director.

- David Lenigas retired from the Board.

8. The financial information set out above does not constitute the Group's statutory accounts for the period ended 31 December 2013, but is derived from those accounts.

9. A copy of this interim statement is available on the Company's website : www.lenigasandoil.com

CORPORATE INFORMATION