COMPAIA PETROLIFERA DE SEDANO, S.L.

BE PART OF OUR FUTURE

COMPAIA PETROLIFERA DE SEDANO, S.L.Madrid

Tel: 917817140

www.lenigasandoil.com

Compaa Petrolfera de Sedano, S.L. (CPS) is a fully owned subsidiary of Leni Gas & Oil plc (LGO). LGO currently have profitable production operations in Spain, US Gulf of Mexico, Trinidad Malta and Hungry. Spain is a major investment for the company.

The Ayoluengo field located in the province of Burgos in northern Spain, is currently the companys main production facility with reserves of 93 million barrels of oil (13.30 million tons). With production increasing month on month, the company aims to achieve a production level of 2,500 barrels of oil per day by the end of 2010 (the equivalent of over 125,000 tons of oil per year) and to maximise the production to 5,000 barrels of oil per day by 2012 (equivalent of over 250,000 tons of oil per year).

In addition, CPS has a 100% interest in the nearby investigation permits of Basconcillos H, Huermeces and Valderredible, which have potential reserves of at least 13 million barrels of oil equivalent (1.80 million tons).

CPS as a fully self-sustained operation, are able to maximise production from the acreage, using proven, leading-edge, best available technology to substantially increase oil production whilst safeguarding the environment in which they operate.

3We will recover at least 20 million barrels of oil (3 million tons) over the next 10 years

We will invest a further 25 million over the next few years, adding to the 5 million alreadyinvested to date

We will generate net earnings of 16 million in 2010 and 60 million in 2011

We will contribute to Spains energy demand with the largest oil production facility in thecountry

We will build the infrastructure to accommodate future storage of gas within the acreage

We will work with the Governments to make capture and storage of carbon dioxide a reality

We will increase the potential recoverable oil and gas reserves from our acreage

We will expand our operations through the acquisitions of other oil and gas companies in Spain

By 2011 CPS will be the largest oil and gas productioncompany in Spain

Spain development opportunitiesAsset location

General Overview

5Ayoluengo historical production

The Ayoluengo acreage has a long history of oil production, going back to the 1960s. By thelate 1980s production had reached 2,500 barrels of oil per day (125,000 tons of oil per year).Since that time a lack of investment has seen production levels decrease dramatically. Now,with substantial investment and the experience of successfully running similar operations inother parts of the world, we plan to return production to the 1980s levels of at least 125,000tons per year.

When CPS took over full operations of the field at the end of 2007, no proven enhanced oilrecovery methods had been used to energise the field (despite some successful trials) and nomodern geological assessment had been conducted to identify enhancement opportunities.Having undertaken this assessment CPS have already identified a variety of proven recoverymethods and scheduled an exploitation plan to prioritise developments to increase productionto the 1980s levels and also commence production from the surrounding exploration acreage.

CPS now operate the acreage as a fully self-sustainable production facility. Water producedon site is injected back into the reservoir to improve oil production, gas generated from the siteis converted to electricity and used to run every aspect of the field (from the pumping systemsto the office computers), and the production facilities enables extracted oil to be safely storedand transported to various industrial consumers throughout Spain. Operating in this wayensures we can maximise oil production, whilst maintaining an awareness and safeguardingthe environment in which we operate with zero emissions.

Target total fields production (unrisked)

Production Increase and Development Projects

7Multiple programs are currently ongoing in an aim to increase production in the Ayoluengo fieldto at least 2,500 barrels of oil per day (equivalent to 125,000 tons of oil per year). Theprograms will improve the efficiency of all aspects of operations, including the cleaning of thewells, improving production from existing and new oil reservoirs, increasing water injection tomaximise oil reserves, and modernising the production facilities.

Within the exploration acreage CPS are reassessing the potential for oil and gas productionwithin all prospects which have already been identified, as well as undertaking furtherassessment to increase potential gas reserves. CPS are carefully consider those prospectswith the highest chance of success for near term development whilst minimising any impact onthe environment.

CPS have a joint development agreement with the public foundation, Spanish FundacionCiudad de la Energia (CUIDEN) headed up by the Minister of Industry, to research, test andimplement carbon dioxide (CO2) sequestration pilot sites in Spain. Carbon sequestration, whichinvolves pumping carbon dioxide into depleted reservoirs, is an area of considerable interest inEurope and the geology of the acreage lends itself perfectly for safely storing CO2 underground.The first of these programs has already been agreed and work will start on the western flank ofAyoluengo and the Huermeces licence, giving the potential to significantly boost productionfrom these areas ,whilst safely storing CO2 in natural watertight compartments.

After careful assessment of the local environment within the exploration acreage, CPS haveoffered to cancel a potential development licence, in order to protect the local habitat andbreeding grounds of the wildlife living within the natural space. This means a potential loss of0.5 million tons of oil for the company and Spain but ensures the environment is protected forfuture generations.

Corporate and Social Responsibilities

9Contributing to the economySpain currently consumes 1.2 million barrels of oil per day, less than 1% of which is suppliedindigenously. With government support we can achieve our production target of at least 2,500barrels of oil per day thereby increasing Spains indigenous oil supply, whilst supporting thegovernments energy policy objectives relating to security of supply.

Investing an additional 25 million over the next few years will enable CPS to make an activecontribution to job creation thereby furthering rural development.

Respecting the environmentWith the boundaries of the field lying within a designated natural space, we are ever aware ofworking within an environmentally sensitive area. Operating a fully self-sustainable productionfacility ensures we can retain our zero emissions policy. Any future work will not adverselyimpact the environment and all work being carried out below ground.

Our work with CIUDEN for CO2 capture and storage in suitable geological formations is directlyin line with international protocols and will go some way in helping the government reducecarbon emissions and meet its objectives to promote environmental sustainability.

Supporting the local communityOur continued commitment to invest in our employees through training and remuneration willhelp keep local communities stable and a place where our employees and their families cancontinue to live.

We are educating future generations on the oil and gas industry, including its contribution to thelocal economy and sustainable working, through training and visits with local schools. We alsohave plans to sponsor university and environmental research programs as well as localcommunity projects.

Experienced Management Team

Ernesto Pozas del Val, Operations Manager (CPS) 35 yerasexperience in management and extraction of oil

Celia Daz Vidal, Tcnico Managing Technician in PublicAdministration and Legal Advisor (CPS) 9 years experience, 6specifically in environmental rights

Natalia Garcia Diez, Office and Business Manager (CPS) 9years experience in the tourist industry, finance and human resrouces

Fraser Pritchard, Managing Director (LGO) with responsibilityto grow CPS 20 years oil & gas experience from most oil & gasprovinces and international and state energy companies

Donald Strang, Director financiero (LGO) 15 years experience infinancial management predominantly within the natural resources sector

David Lenigas, Presidente (LGO) 25 years experience in the naturalresources industry covering oil and gas, coal, precious and base metals

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COMPAIA PETROLIFERA DE SEDANO, S.L.www.lenigasandoil.com

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