Legal dispute

For Immediate Release (Embargoed until 7.01 am)

3 September 2012

LENI GAS AND OIL PLC

("LGO" or the "Company")

Malta Area 4, Legal dispute with Mediterranean Oil and Gas

The Board of LGO announces that, through its lawyers Mishcon de Reya, the Company has attempted to seek confirmation from Mediterranean Oil and Gas Plc ("MOG") of the factual position underlying MOG's representations to LGO before the sale of the Company's 10% working interest in Malta Area 4.

Today's announcement follows LGO's statement on 23 August 2012, in which the Company expressed surprise that MOG had entered into farm-in agreements with Genel Energy Plc ("Genel") for a $10 million cash consideration and two well commitment on the off-shore Malta Area 4 PSC, only weeks after LGO had agreed to sell its 10% working interest to MOG for $1 plus approximately $20,000 of joint venture liabilities.

MOG has not provided any information. Accordingly, LGO has instructed Mishcon de Reya to repeat its request for confirmation of the factual position. Should no satisfactory answers be received by the evening of Monday 3rd September 2012, Mishcon de Reya has been instructed to seek disclosure through the courts and to assess LGO's grounds for rescission of the sale of its 10% interest in Malta Area 4 on the grounds of misrepresentation.

Mishcon de Reya has requested that MOG answer the following questions in full and in detail, and also provide copies of all information relating to the 2011 Long Offset 3D Seismic on Malta Area 4, to which LGO participated as a joint venture partner.

1. What does the 2011 3D seismic actually indicate as to Cretaceous prospectivity or any other prospectivity, what risks and reserves have been estimated and provided to Genel and/or other third parties and on what date(s)?

2. At what time did this prospectivity become evident to MOG and its subsidiaries?

3. On which date did MOG first have discussions with Genel or any of its shareholders, officers or staff concerning the PSC or the underlying hydrocarbon deposits to which it relates?

4. How did MOG come to speak to Genel about the PSC - and which party made the approach?

5. On which date was the prospect of Genel acquiring an interest in the PSC first raised?

Neil Ritson, LGO's CEO commented:

"LGO made it expressly clear to MOG, before entering into sale negotiations, that it would not sell its interest in Malta Area 4 if the 3D seismic analysis indicated Cretaceous prospects. LGO would not have sold its interest for $1 plus liabilities had it been aware of interest from Genel Energy Plc or other potential farm-in partners. LGO considers that MOG's subsidiary PECL, as Operator, was at all times under a duty to provide such information to LGO. LGO is concerned that representations other than the factual position may have been made to it prior to agreeing to sell and before signing the sale of its 10% working interest in Malta Area 4."

Enquiries:

Leni Gas & Oil plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Shore Capital

Joint Broker +44 (0) 20 7408 4090

Pascal Keane

Jerry Keen (Corporate Broking)

Pelham Bell Pottinger