1. Leni Gas and Oil plc Corporate Update London (AIM): LGO 24 April 2014
Neil Ritson, CEO
London (AIM): LGO

2. Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets

3. Company Profile
London Stock Exchange - listed March 2007 Producing Oilfields - Trinidad and Spain Staff (98% local) Net Production bopd P2 Reserves mmbbls Market Cap £22 million
London HQ
Spain
Trinidad

4. London Management and Board of Directors
Chairman
David Lenigas
Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industry experience. Until recently he was the Executive Chairman of Lonrho plc. David is also the Executive Chairman of Stellar Resources plc, Solo Oil plc, Rare Earth Minerals plc and AfriAg plc.   
Chief Executive
Officer
Neil Ritson
Has a BSc in Geophysics.  He has worked in the energy sector for over 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. and more recently as CEO at Regal Petroleum plc, before founding the Vanguard Energy Group where he was Chairman and CEO.  He is a Director of Solo Oil plc and a Non-Executive at Enovation Resources Ltd.
Chief Operating Officer
Fergus Jenkins
Is a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He has over 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for most of his career in mid-sized independent oil companies, including Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.
Director of Finance
James Thadchanamoorthy
Has a degree in Chemistry and is a qualified accountant.  He has 18 years’ experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions.
Non-Executive
Director
Steve Horton
Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy industry including 27 years with BP plc where he held executive roles including worldwide Director of Drilling.  He co-founded Silverstone Energy Limited in Steve is a Non-executive Director of Seamwell Limited and, until the recent merger, of Valiant Petroleum plc.

5. Topics Today Trinidad Goudron Field Infrastructure Drilling update
Production
Cedros Peninsula
Spain
Ayoluengo Field update
Pansoinco Partnership
Summary
Share Price Performance
Financing
Goudron Station 207
Ayoluengo Well 37

6. TRINIDAD

7. LGO’s Trinidad Assets
Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and over 60 mmbbls of contingent resources associated with a future water flood. Active production from 70 reactivated wells and growth from imminent 30 well infill drilling
Icacos Field in the Cedros Peninsula (50%, non-operator), producing ~35 bopd from three wells. Future opportunities for infill drilling
Over 7,500 acres of largely unexplored 100% owned private oil leases in the Cedros and adjacent rights held in partnership with Beach Oilfield Limited

8. Goudron Phase 1: Infrastructure
Located in the remote primary forests of the Trinity Hills close to a Wildlife Sanctuary
Limited work undertaking for 30 years
LGO has:
Doubled sales tank capacity
Refurbished previous tank facilities
Repaired bridges and roads
Installed an entirely new camp facility
Extended and restored electrical power
Constructed new water treatment facilities
Reactivated about 70 old wells
Sales Tank Battery #34

9. Goudron Phase 1: Infrastructure
A newly commissioned
camp with:
offices
workshops
stores
hot-work area
crew rest area
accommodation
All key infrastructure is now in place for the upcoming 30 well drilling campaign
and
for oil production of over 2,000 bopd
Goudron Camp David

10. Goudron Phase 1: Production
Phase 1 reactivations have now peaked
Some reactivations still ongoing with potential for further recompletions, gas lift and condensate production
Considering a long term stable economic rate of 275 – 325 bopd from the old wells
Focus on Phase 2 production which is budgeted conservatively at 65 bopd/well (IP)
Upside in new wells estimated +150% of budget (~160 bopd), downside is estimated at -25% (~45 bopd)
Goudron Typical Well

11. Goudron Phase 1: Production – Typical Well
Drilled in 1957, completed in 290 feet of Goudron Sand, produced 78,020 bbls over 15 years

12. Goudron Phase 2: Development Drilling
Production to date, using primary pumped wells, has achieved recovery of less than 4 million barrels
Significant parts of the field have not be swept, especially at Cruse level
Previous drilling techniques can be vastly improved
A program of 30 new development wells, infilling and extending the field, is now underway
Rig mobilisation started 16th April
STATUS: rig components and equipment transferred to the field and rig-up underway
Rig 20 at Palo Seco

13. Goudron Phase 2: Well H18 EJ7
H18 EJ-7 is the first new well on Goudron for 33 years
Goudron Sands are productive in offset wells
Gros Morne is productive in nearest well
Lower Cruse sands are productive in some wells

14. Cedros Peninsula

15. LGO Cedros Lease Position
Installing new well tanks
Beach Oilfield Cedros Leases
FRM-1 Deep Well
LGO Cedros Leases
3D Seismic
In-line 4100
Icacos Field
Bonasse Field
Icacos Leases
Galpha Point

16. LGO Cedros – 3D Seismic Data
South
0 sec
1 sec
2 sec
3 sec
North
Installing new well tanks
Icacos
Southern Range Anticline
In-line 4100

17. Plans for the Cedros
In collaboration with Beach Oilfield re-evaluate all existing data and wells
Acquiring a soil geochemistry survey to isolate micro-seepage and areas of fractionated light oil
Fly a high resolution gravity and magnetics survey
Acquire additional 2D seismic data if necessary to define well locations
Drill at least one deep exploration well to test the potential at Herrera Sandstone level
Installing new well tanks
Galpha Point Mud Volcano

18. Unexplored deep prospectivity
Oil impregnated Herrera Sandstone
from ~10,000 feet sub sea, thrown up by the Galpha Point Mud Volcano
Installing new well tanks

19. SPAIN
Ayoluengo Field, Cantabrian National Park, Spain

20. Spanish Assets Onshore Northern Spain
Cantabrian mountains between Burgos and Santander
Ayoluengo Oilfield
Discovered 1964
Produced 18 mmbbls
Oil in place 104 mmbbls
Hontomin Oilfield
Discovered 1968
Test production only
Oil in place < 4 mmbbls
Tozo Gas Field
Discovered 1965
Test production only
Gas in place 5 bcf

21. Ayoluengo Potential
Future opportunities to enhance production through the side-tracking of existing wells to reach unswept oil
Major investment only justified once the Concession is extended
Concession extension process to commence in 2014
Probable timeline to complete extension months
Seismic, sedimentological and engineering studies now underway in parallel
Ayoluengo Field

22. Wider Spanish Potential
Development of Hontomin as a low cost satellite to Ayoluengo using existing 3D seismic and re-entry of existing wells
Development of Tozo as either a micro-Compressed Natural Gas or Gas-to-Wire project
Deepen Ayoluengo to the proven Liassic reservoirs
Sub-lease the shale gas exploration potential in the Sedano trough?
Secondary or tertiary recovery?
Cantabrian Massif at Sergentes

23. Proposed Pansoinco Partnership
Italian privately owned oil and gas maintenance and operations group
Create access to Pansoinco’s resources to enhance production at no cost to LGO for 3 years
LGO’s predicted 3-year cashflow is advanced to the date of transaction
Incentivises Pansoinco to invest in production growth and seek a concession extension to 2027
Well work over Ayoluengo

24. How it works… LGO receives estimated 3-year discounted cashflow
Revenue interest
reverts to 65:35%
Pansoinco makes a return
Pansoinco invests

25. Why it works… At the end of the 3-year period:
Pansoinco have made a worthwhile return on their investment (IRR > 30%)
Ownership of revenue reverts to 65:35%
LGO’s 35% revenue is greater than the 100% of base revenue that would have resulted
In the interim LGO has had use of $2.8 million to deploy in Trinidad

26. Change the picture
CONCLUSIONS

27. Share Price Progression
Pansoinco
Partnership
Equity
£1.3
Reduced taxation
Goudron
CEC
High Court
Royalty
Reduction
500 bopd
BOLT
Mobilisation

28. Conclusions
Phase 1 production at Goudron from legacy wells now planned to stabilise at a long-term rate of roughly bopd
Phase 2 development drilling underway in next few days; forecast to take total production to 2,000 bopd within 18 months
Once some of the new wells have been drilled LGO will develop a Phase 3 water flood development plan and issue a new CPR
Exciting medium term opportunity in the Cedros peninsula
Relationship with Pansoinco could provide a short-term cash boost and a long-term value driven partnership in Spain
Debt funding based on established cash-flow and underlying reserves at Goudron is still actively being sought
New production-based opportunities in Trinidad are being reviewed

29. Thank you for your attention

30. Forward Looking Statements
Certain statements in this presentation are “forward looking statements” which are not based on historical facts but rather on the management’s expectations regarding the Company's future growth. These expectations include the results of operations, performance, future capital, other expenditures (amount, nature and sources of funding thereof), competitive advantages, planned exploration and development drilling activity including the results of such drilling activity, business prospects and opportunities. Such statements reflect management's current beliefs and assumptions and are based on information currently available.
Forward looking statements involve significant known risks, unknown risks and uncertainties. A number of factors could cause the actual results to differ materially from the results denoted in these statements, including risks associated with vulnerability to general economic market and business conditions, competition, environmental and other regulatory changes, the results of exploration, development drilling and related activities, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company.
Although these statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that the actual results will be consistent with these forward looking statements.