2009-04-15-2009-04-08

To acquire 7.25% WI in Eugene Island Field in GOM, gaining 435 BOE/d.

Leni Gas & Oil plc, London, (London AIM: LGO) plans to acquire a 7.25 working interest in the Eugene Island Field in the Gulf of Mexico from privately-held, Australian-based Byron Energy Pty Ltd. by exchanging its equity interest in Byron in a deal valued at US$21.7 million. Leni will convert its 28.94% interest in Byron Energy to a 7.25% direct working interest in Eugene Island Blocks 183 and 184 south, and a 3.625% direct working interest in Blocks 172 and 184 north. Leed Petroleum plc is operator and majority owner of the Eugene Island Field with gross production of approximately 6,000 barrels of oil equivalent per day. Leni's net production will be 435 barrels equivalent per day. Leni also will hold an option to acquire up to 29% of Byron Energy's interest in all Gulf of Mexico properties under an existing agreement with Leed, and an option to acquire up to a 20% direct working interest in properties acquired by Byron by paying 30% of all costs. Byron Energy holds a 25% working interest in blocks 183 and 184 south and a 12.5% working interest in blocks 172 and 184 north, with the remaining interests held by Leed Petroleum. Byron Energy retains the option to acquire up to a 25% stake in Leed Petroleum's working interests in Grand Isle block 95 and 100; South Marsh Island block 5, 6 and 8; Ship Shoal block 201 and 205; Main Pass block 115; Sorrento Field and West Cameron block 106. David Lenigas, Leni executive chairman, says the deal is "a coming of age step for Leni Gas & Oil. The Company now will retain a direct interest in our Gulf of Mexico portfolio with all the reporting and forecasting advantages this will bring to management of our global operations." Leni will relinquish its board position in Byron.