Deal with DNO/Suspension

LEPCO plc
26 October 2000


LEPCO plc ('the Company')

The text below was originally published as part of the
Interim Results released this morning under RNS No. 0870T.
There are no material changes to the text.


             DEAL WITH DNO/SUSPENSION OF SHARES
                              
                              
DNO  ASA  ('DNO')  and LEPCO plc ('LEPCO')  have  signed  an
agreement  of  intent  for LEPCO to acquire  oil  assets  in
return  for ordinary shares in the Company.  DNO is expected
to enter into an agreement, subject to shareholder approval,
prior to the end of the calendar year.

The asset deal involves the transfer of part of DNO's equity
in  Blocks  32  and 53 in the Yemen.  Both blocks  are  held
under  Production Sharing Contracts.  Block  32  contains  a
number  of  oil prospects and an estimated 6-million  barrel
development (the Tasour field), which is due onstream  later
this year. The block is operated by DNO.

Block  53  lies  due east of Block 32 and in  June  2000,  a
wildcat  well made an oil discovery, which flowed  at  4,850
barrels/day under test conditions. A further well  is  being
drilled to appraise this discovery.

The  transaction will have an economic effective date  of  1
January  2001 and after completion DNO will hold a  majority
interest in the share capital of LEPCO.  The agreement  will
be conditional upon the 'white wash' provisions of the Panel
on Takeover and Mergers.

It  is  proposed  to transact the asset-for-equity  deal  at
16.5p a share, that being the bid price at close of business
on  the  Alternative Investment Market of the  London  Stock
Exchange on Friday 20th October 2000.

The  completion of the sale and transfer of interests in the
Yemen  are  subject to governmental and coventurer approvals
and  consents being given in a form acceptable to  DNO.   In
addition,   LEPCO  is  required  to  obtain  all   necessary
regulatory   and  corporate  approvals.   An   Extraordinary
General Meeting will be held to approve the transaction  and
a circular to shareholders will be despatched in due course.

On  completion of the transaction, the Board and  Management
of  LEPCO  will be restructured.  A majority of the  current
Board  members  will  resign and Berge Gerdt  Larsen  (Chief
Executive of DNO ASA) and a further nominee of DNO  will  be
appointed.  It has also been agreed that upon completion  of
these  changes Peter Bassett will retire as Chairman of  the
Board and Berge Larsen will be appointed as Chairman of  the
Board.

In  a  separate  agreement, DNO has agreed to provide  LEPCO
with a £250,000 loan facility.
Under this facility, DNO is entitled to require repayment in
either  cash  or  ordinary  shares  in  LEPCO  at  the  then
prevailing  market  price.  In the event  of  DNO  requiring
repayment  in  cash, LEPCO is entitled to make repayment  in
shares to the extent that it is unable to repay in cash.

In  view of the loan facility agreed on 24 October 2000  and
the  size  of the proposed transaction which will result  in
DNO  having control of more than 50% of the Company's issued
share  capital and DNO having a majority of the  Board,  the
Directors  have  requested  that trading  in  the  Company's
shares  is  suspended until full details of the  transaction
are circulated to shareholders.






For further information contact:

Peter Wilde     Managing Director, LEPCO plc   020 7233 5245
Chris Callaway  Beeson Gregory                 020 7488 4040

26 October 2000


Editor's Notes:

LEPCO  plc  is an AIM quoted Company whose current principle
asset  is a 90% operated WI in a 75 Bcf gas prospect in  the
Southern Gas Basin. The Company floated on the AIM market in
1997  and  its  management has been seeking ways  to  expand
following  the sale of its interest in the UK Forties  field
after the oil price collapsed in 1998.  LEPCO currently  has
9.9 million shares in issue.

DNO ASA is a Norwegian quoted Company with assets in the
North Sea and the Yemen.  In the UKCS DNO is the Operator of
the Heather field.  In 1996, Berge Gerdt Larsen acquired a
controlling interest and restructured the Company's Board
and management. In the subsequent four years, the Company's
market capitalization has grown from £3m to approximately
£100m.