Leni Gas & Oil PLC

Date of Incorporation

Leni Gas and Oil plc was incorporated on the 9 August 2006.

IPO - Fund Raising

The Company raised gross proceeds of £3.85 million at 3p per share.

AIM Trading Begins

Leni Gas & Oil Plc. was admitted to AIM on 19 March 07.

Malta - Acquisition

In May 2007 LGO completed a Farm-In Agreement with Malta Oil Pty Ltd for the acquisition of 20% interest in four oil and gas exploration blocks, known as Area 4, in Maltese waters for expenditure of up to US $5m.

Fund Raising

The Company raised gross proceeds of £3.34 million in a placing to institutional investors of 55,666,667 new ordinary shares of 0.05p each in the Company at 6p per share.

Spain - 88.7% Acquisition

In November 2007, the company acquired 88.75% of the Ayoluengo Oil field in Spain with revenues attributable from 1 August 2007.

Malta - Geological

2D seismic commissioned during June to December 2007 with a view to identify drillable projects.

Trinidad - 50% Acquisition

In January 2008 the Company acquired a 50% interest in the producing Icacos oilfield in Southern Trinidad. The field is operated by Primera. Current daily production for the field is 34 bopd from only 3 of 14 wells.

This acquisition of the producing Icacos oilfield in Trinidad provided the Company with a foothold in one of the richest oil and gas bearing areas of the world, and access to the highly prospective East Venezuelan Basin. Initial data analysis of the prospect has identified a potential deep oil & gas play of significant magnitude.

Spain - 11.25% Acquisition (100% Ownership)

In April 2008 the Company acquired the remaining 11.25% of the operational Ayoluengo Oilfield in Spain to effect 100% ownership, and embarked on an ambitious exploitation programme to realise incremental recoverable reserves of 10mmboe, and increase production through a variety of proven secondary recovery techniques.

The Ayoluengo Oilfield was developed by Chevron in the 1960’s and full production facilities exist for a 10,000 bbl per day operation, with the operations well equipped and staffed to handle the targeted oil production increase.

The surrounding 556 sq.kms of exploration acreage in Spain (Basconcillos H, Huermeces and Valderredible permits) also show significant potential for additional near-term developments and the Company increased its holding in these permits from 50% to 85%.

Fund Raising

The Company raised gross proceeds of £12.54 million in a placing to institutional investors of 156,725,000 new ordinary shares of 0.05p each in the Company at 8p per share.

US Gulf of Mexico - Byron Shares Purchase

In July 2008 LGO acquired 3.34 million new shares in Byron Energy Pty Ltd , representing 22.3% of the issued share capital of Byron for an aggregate cost of approximately US$22 million in cash. Byron is a private Australian company, incorporated in 2005. Since its incorporation, Byron has operated as an oil & gas exploration, development and production company focused on opportunities in the US Gulf of Mexico and the US Lower 48.

Malta - Farm-In Agreement

In July 2008 the initial Farm-In Agreement was varied such that LGO now contributes only US $2.5m for a 10% working interest in Area 4 and the Production Sharing Contract between Malta Oil Pty Ltd and Maltese Government.

Hungary - Acquisition

LGO completed the acquisition of a 7.27% interest in PetroHungaria Kft and a 14,54% interest in ZalaGasCo Kft. PetroHungaria owns a 100% interest in the Peneszlek gas development and ZalaGasCo has a 50:%) joint venture with MOL for the redevelopment of various fields in Western Hungary.

Fund Raising

In June/July 2008 the Company raised gross proceeds of £16.36 million from three placings to institutional investors of 207,727,812 new ordinary shares of 0.05p each in the Company at 8p per share.

US Gulf of Mexico - Byron Working Interest Acquisition

Byron Energy completed a transaction to acquire a 25% Working Interest in both Eugene Island Blocks 183 and the southern half of Block 184 (Net Revenue Interest up to 20.83% in Block 183 and 19.17% in the southern half of Block 184), including the Eugene Island 184A platform and production facilities.

Byron has also acquired a 12.5% Working Interest (Net Revenue Interest 9.58%) in the northern half Eugene Island Block 184 and 10.37% Working Interest (Net Revenue Interest 8.64%) in Eugene Island Block 172, excluding the Eugene Island 172 producing reserves and platform. These properties were acquired from Leed Petroleum plc under the terms of the Scouting Agreement between Byron and Leed.

LGO acquired a further 6.64% in Byron for US $6.57 million. LGO now holds 28.94% of Byron.

Spain - New Reserves Estimates

Results of a new interpretation on the remaining potential at the Ayoluengo Field were published following a study by TRACS International.

Highlights
• Stock Tank Oil Initially in Place (STOIIP) calculated across all four primary reservoir sands totalling 109.7 mmbbls

• Remaining Oil in Place across all four Ayoluengo sands of 92.8 mmbbls (85% of STOIIP)

• Ayoluengo historical Recovery Factor of only 15%, ranging from 9% to 25% across the four sands

• LGO increasing the potential incremental recoverable reserves target for the Ayoluengo field from 10% to 15%, equivalent to a new potential target of 15 mmbbls

A full re-interpretation of the Ayoluengo oilfield identified that only 17 million barrels of oil (mmbbls) has been produced from the field with a STOIIP in the range of 93 – 116 mmbbls. TRACS mapped all historical production from the field across the four primary reservoir sands in order to identify where secondary recovery techniques would have the largest benefit and also located possible un-depleted zones. The results of this study will primarily be used to refine the planned enhanced recovery programs.

The study results show 90% of the recovered oil to date has been produced from the eastern flank of the field (15.5 mmbbls) with the balance of 1.5 mmbbls was from the western flank. The results also show that the main Ayoluengo reservoir has been effectively depleted by primary recovery with some areas particularly around the area of water injection supporting the principle that water injection is beneficial to recovery.

Conversion of interest in Byron

A Heads of Agreement was signed with Byron Energy Pty Ltd to transfer the Company’s 28.94% shareholding in Byron Energy to a direct ownership of its US Gulf of Mexico oil and gas assets.

Agreement with CIUDEN

Agreement signed with the Fundación Ciudad de la Energia (CIUDEN) for the research, testing and implementation of carbon dioxide (CO2) sequestration pilot sites in Spain. CIUDEN is a Spanish foundation incorporated by the Ministry of Industry, Trade and Tourism, the Ministry of the Environment and the Ministry of Science and Innovation. One of CIUDEN's most important technical objectives is R&D related to carbon capture and storage (CCS). As part of the R&D effort two pilot plants have been planned, one for carbon capture and another where activities will investigate the "life cycle" of underground storage of CO2.

Under terms of the joint development agreement, LGO will support CIUDEN in identifying and carrying out work programs to evaluate CO2 sequestration on two assets within LGO's Spain acreage. All work programs are wholly funded by CIUDEN.

Relinquishment in Hungary

The Company relinquished all of its holdings in Hungary, composed of 14.54% of ZalaGasCo Kft and 7.27% of PetroHungaria Kft.

Agreement with BP

A Heads of Agreement was signed with BP España for a crude oil sales agreement to off-take current and future production in Spain to BP's Castellón refinery in eastern Spain.

3D acquired at Hontomin

A 3D seismic survey and associated investigation work was carried out at the Hontomin oilfield as part of the CIUDEN joint development program.

Additional Fund Raising

The Company raised gross proceeds of £1.5 million in a placing to institutional investors of 75 million new ordinary shares of 0.05p each in the Company at 2p per share.

Hontomin-2 well re-entry

The Hontomin-2 well was re-entered and work including the running of electric wire line logs and perforation of the existing hydrocarbon intervals and other potential undepleted zones was undertaken to assess the full production potential of the structure. All oil production from Hontomin was transported to the central production facilities at the Ayoluengo Field for processing.

Additional Fund Raising

The Company raised gross proceeds of £0.8 million in a placing to institutional investors of 40 million new ordinary shares of 0.05p each in the Company at 2p per share.

Agreement with Praxair

An agreement was entered into with Praxair España, S.L., a Spanish subsidiary of Praxair, Inc. to provide assistance in a nitrogen enhanced oil recovery pilot project at the Ayoluengo Field in Spain.

Fund Raising

The Company raised gross proceeds of £5.5 million in a placing to institutional investors of 183,333,333 new ordinary shares of 0.05p each in the Company at 3p per share.

Appointment of Neil Ritson

The Company appointed Neil Ritson as its first Chief Executive Officer.

Well intervention programme at Ayoluengo

A work programme focused on six high productivity wells in the crestal area of the Ayoluengo Field (Ayo-4, 5, 32, 36, 37 and 46) and the perforation of previously untapped reservoir in the Hontomin-2 well on the nearby Hontomin Field was carried out. Each Ayoluengo well was cleaned out, logged, re-perforated over existing intervals, as well as some new intervals were perforated and the casing and production tubulars were repaired. Additionally, well Ayo-22 was logged as a possible future gas supply well, but was not re completed at this time.

Extension of Malta PSC

The Area 4 Petroleum Sharing Agreement covering Blocks 4, 5, 6 and 7 offshore Malta, in which LGO holds a 10% interest, was extended by 18 months until 18 January 2013, including a commitment to acquire an additional 1,000 sq km of 3D seismic by January 2012.

Trinidad - Moruga North Farm-in (49%)

In the first of a number of new opportunities that LGO have negotiated in Trinidad with the aim to significantly increase operations the Company signed a Heads of Agreement with Advance Oil Company (Trinidad) Ltd. The Advance leases lay in a highly prospective, but underexplored, parts of the Southern Basin. The leases have two existing producible wells and LGO agreed to reactivate these and to drill three new exploration and up to six appraisal and development wells. The combination of existing proven reserves and several undrilled structures makes this area especially attractive.

Trinidad - Acquisition Goudron (100%)

Leni Gas & Oil plc announces the acquisition of Goudron E&P Limited, which holds exclusive rights to acquire the Incremental Production Service Contract for the Petroleum Company of Trinidad Limited owned Goudron Field in onshore south-eastern Trinidad. The field was previously operated by Texaco and contains an estimated remaining oil in place in excess of 150 mmbbs. A well workover campaign, infill drilling, hydraulic fracturing and later water flood are believed to be able to raise production to between 2,000 and 4,000 bopd. LGO expect to take operatorship in early 2012.

Trinidad - Additional Cedros Leases

LGO reached agreement to acquire the subsurface rights of several additional land leases in the Cedros Peninsula of SW Trinidad, totalling 937 acres. These leases, which lie immediately adjacent to the Company's producing interests at Icacos, will be combined with the 815 acres already leased earlier in 2011 and a Private Petroleum License will be applied for.

The Icacos License covers a total of 1,960 acres; which with the new 100% owned leases, gives LGO a total interest in over 3,700 acres. This is considered a sufficient area to initiate the detailed planning for geophysical surveys; expected to consist of an airborne gravity and magnetic survey in 2012, followed by 2D seismic data and exploration drilling to explore for the Herrera Formation target. This area lies less than 15 kilometers from the Venezuelan coast where the equivalent Mio-Pliocene play is proven and has produced close to a billion barrels over the last 80 years.