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Leni Gas & Oil plc

("LGO" or the "Company")



Partnership Agreement in Trinidad





Leni Gas & Oil plc today announces the formation of a partnership with Range Resources Limited ("Range") to jointly develop their interests in the Eastern Fields Area onshore southern Trinidad, including the Goudron and Beach Marcelle fields.



In a binding Heads of Agreement ("HOA") Range and LGO have agreed that, subject inter alia to full legal and technical due diligence (see Appendix below for Conditions Precedent):

· Range will acquire a 30% interest in Goudron E&P Limited ("GEPL") in return for contributing US$4 million at completion;

· For a further contribution of US$4 million during the first 12 months following completion Range will increase their holding in GEPL to 50%;

· LGO will operate the Goudron field during the initial work-over phase, but subject to Range exercising its option to acquire a total of 50% in GEPL, Range will become operator during the infill drilling and water flood phases;

· Range will obtain an accelerated return through 75% of the revenue interest until their initial investment is recovered;

· LGO will have the option to acquire a 15% interest in the Beach Marcelle waterflood project by contributing 22.5% towards the development costs (i.e. paying a 50% promote), up to US$7 million, towards the development costs;

· Range and LGO will work collaboratively to optimise and extend their joint interests in the Eastern Fields Area in Trinidad.