Acquisition

LEPCO plc
23 October 2002


                              LEPCO plc

                    to be renamed Sterling Energy plc 

        Acquisition of additional gas production in the Gulf of Mexico

LEPCO plc (the 'Company'), to be renamed Sterling Energy plc, announces that it
has today completed the acquisition of additional gas production in the Gulf of
Mexico. The acquisition comprises a 17.5% interest in the Galveston 303 license
for a total consideration of $315,000, of which $140,000 is payable in cash and
the balance being the assumption of estimated future abandonment liabilities
(the 'Acquisition'),

The Acquisition is currently generating revenues of $50,000 per month at current
gas prices and the Directors anticipate that the Acquisition will be
approximately cash neutral in the first 12 months having taken into account the
gross consideration. Galveston 303 is currently producing 4,000 mcfd of gas,
with potential to add 1,000 mcfd more at minimal expense. It may provide at
least two new drilling opportunities for 2003.

Information on LEPCO plc

On 18 October 2002, shareholders approved the acquisition of Sterling Energy
Limited for up to £7.9 million and the raising of additional working capital of
£2.4 million by way of a Placing and Open Offer. Trading in the enlarged group
commenced on AIM on 21 October 2002 and it is anticipated that the change of
name will be effected imminently with the consequential change in the Company's
mnemonic from LCO to SEY. 

The Company already has a portfolio of five cash-flow producing gas fields in
the Gulf of Mexico. In addition, the Company owns a 100% working interest in a
large exploration license offshore Philippines, where some 600 bcfe of potential
gas reserves were found in the 1970s and 1980s. The Company is evaluating a
potential development of these reserves through gas-to-liquids technology.
Considerable upside drilling potential exists adjacent to the existing finds.

Commenting on the Acquisition, Harry Wilson, Chief Executive said: 

'We intend to continue to acquire new assets, build a wider international
portfolio of exploration and production interests, and offer the prospect of
strong capital growth.' 

                      This information is provided by RNS
            The company news service from the London Stock Exchange