Final Results

LEPCO plc
29 June 2000

                                  
LEPCO plc

Chairman's Statement


In 1999 conditions within the exploration and production industry
remained difficult.  The year started with historically low oil
prices and gas prices continued to fall throughout the year.  Since
the oil price collapse in 1998 the industry, particularly in the
North Sea, has remained introspective focusing on mergers rather
than asset rationalisation.  Even with the recovery in the oil price
over the last twelve months this trend has continued, with many
companies being reluctant to sell proved reserves and capital
budgets remaining low.

Given this background, LEPCO's activities in 1999 were focused on
developing its existing assets as well as seeking to acquire assets
at fair value.  In this regard, the most important development was
the settlement of the Company's dispute with Mustang Oil Limited,
resulting in the Group acquiring effectively all of the equity on
block 47/9c (subject to small carried interests) and being approved
by the Department of Trade and Industry as operator of the block.
This is LEPCO's first operatorship.

Block 47/9c contains a significant gas prospect close to the
southern part of the Easington Catchment Area.  Phase 1 of this
project, including the Mercury field on the immediately adjacent
block 47/9b and operated by BG plc, recently commenced production.

Following a review of previous activity on the block, we announced
on 9 May 2000 that the Company had agreed with Montrose Industries
Limited for them to earn a 5% interest in the block in return for
providing the services of Dr Richard Stabbins (formerly Exploration
Director of Goal Petroleum plc) to manage an evaluation programme.
This evaluation programme includes a full review and
reinterpretation of 3-D seismic and other data over the licence.
The evaluation is currently in progress and we will be making a
further announcement as to the outcome of this review.  LEPCO has
also furthered its exploration effort in the same geological basin
by an application for acreage in the UK onshore 9th round which is
currently in progress.

The board and management continue to pursue opportunities to acquire
producing oil and gas interests in both the UK and the Netherlands.
In particular, we reached agreement in 1999 on two separate
transactions to acquire producing gas interests in the Dutch North
Sea.  We announced in January 2000 that the principal transaction
concerned - involving the acquisition of a package of producing gas
interests in Netherlands North Sea from Total Oil and Gas Nederland
B.V. - had been pre-empted.  Following this we withdrew from the
remaining agreed transactions as they no longer satisfied LEPCO's
criteria.

The financial results of the Group to 31 December 1999 reflect
LEPCO's current focus on exploration activities since the disposal
of its interest in the Forties field in January 1999.  In
particular, overhead costs have been cut significantly and the
directors intend to keep costs consistent with the activities and
resources of the Group.

In spite of recent difficult conditions in our sector, the directors
believe that LEPCO is well placed to develop as one of the UK's few
quoted independents as activity increases in the industry.  In
addition to progressing activity on the Group's exploration
programme, the board is continuing to review all options for the
Group's future development, including discussions with interested
parties, to assist in the significant growth of the business.  I
look forward to keeping shareholders informed of progress.





P.J. Bassett
Chairman


29 June 2000


Copies of the Company's Annual Report will be sent to shareholders
on 30 June 2000 and will be available thereafter for members of the
public at the Company's office at Vigilant House, 120 Wilton Road,
London SW1V 1JZ.



For further information contact: Peter Wilde, LEPCO plc         020 7233 5245
                                 Chris Callaway, Beeson Gregory 020 7488 4040




Consolidated profit and loss account
For the year ended 31 December 1999
                                                           
                                                      1999      1998
                                                         £         £
Turnover                                                   
Continuing                                          37,125    19,146
Discontinued                                      -        1,873,938
                                                  ________ _________
                                                    37,125 1,893,084
                                                  ________ _________
Cost of sales                                              
Continuing                                        (46,630)   (11,242)
Discontinued                                      (64,362)(2,468,792)
                                                  ________ ________

                                                 (110,992) 2,480,034)
                                                  ________ ________
                                                 
Gross (loss) profit                                        
Continuing                                         (9,505)    7,904
Discontinued                                      (64,362) (594,854)
                                                  ________ ________

                                                  (73,867) (586,950)
                                                  ________ ________

                                                           
Administrative expenses                                    
Abortive acquisition costs                                 
-continuing                                        (83,382)     -
-discontinued                                          -    168,217)
Other (continuing)                                (212,074) 186,160)
                                                  ________ ________

                                                  (295,456)(354,377)
                                                  ________ ________

Operating loss                                             
Continuing                                        (304,961)(178,256)
Discontinued                                       (64,362)(763,071)

                                                  ________ ________

                                                  (369,323)(941,327)
                                                  ________ ________
                                                           
Profit on sale of tangible fixed assets            11,140        -
(continuing)
Loss on disposal of discontinued                  -       (189,310)

Investment income                                  24,936    5,029
Interest payable and similar charges                (462)  (26,354)
                                                  ________ ________

Loss on ordinary activities before               (333,709) (1,151,962)
Taxation                                              -        39,606
                                                  ________ ________

Retained loss for the year                        (333,709)(1,112,356)
                                                  ________ ________

Loss per share (basic and diluted)                  3.39p     13.2p

Consolidated statement of total recognised gains and losses
For the year ended 31 December 1999
                                                           
                                                           
                                                      1999        1998
                                                         £           £
Loss for the financial year                       (333,709) (1,112,356)
Gain on foreign currency translation                   526         768
                                                  ________    ________

Total recognised gains and losses relating to the (333,183) (1,111,588)
                                                  ________    ________

                                                           

Consolidated balance sheet
31 December 1999
                                                           
                                                     1999    1998
                                                        £       £
Fixed assets                                               
Intangible assets                                 877,434   714,761
Tangible assets                                    18,532    30,499
                                                  ________  ________
                                                   
                                                  895,966   745,260
                                                  ________  ________
                                                  
Current assets                                             
Debtors                                           23,254    987,188
Investments                                       -         106,647
Cash at bank and in hand                          436,238    44,559
                                                  ________ ________

                                                  459,492  1,138,394
Creditors: Amounts falling due within one         (74,372)  (269,385)
year                                                      
                                                  ________ ________

Net current assets                                385,120    869,009
                                                  ________ ________

                                                           
Total assets less current liabilities,            1,281,086 1,614,269
being net assets                                  
                                                  ________ ________
                                                  
                                                           
Capital and reserves                                       
Called-up equity share capital                      983,273    983,273
Share premium account                             1,669,145  1,669,145

Other reserves                                       35,618     35,092
Profit and loss account                          (1,406,950)(1,073,241)
                                                
                                                  ________   ________
                                                 
Total equity shareholders' funds                  1,281,086 1,614,269

                                                  ________   ________
                                                   
                                                           

Company balance sheet
31 December 1999
                                                           
                                                     1999      1998
                                                         £        £
Fixed assets                                               
Intangible assets                                 729,510   533,006
Tangible assets                                     5,090    13,567
Investments                                        37,678    37,678
                                                  ________ ________
                                                 
                                                  772,278   584,251
                                                  ________ ________
                                                
Current assets                                             
Debtors                                           253,230  1,167,391
Investments                                       -          106,647
Cash at bank and in hand                          410,434     42,049
                                                  ________ ________

                                                  663,664  1,316,087
Creditors: Amounts falling due within one         (66,607) (248,982)
year
                                                  ________ ________
    
Net current assets                                597,057  1,067,105
                                                  ________ ________

                                                           
Total assets less current liabilities,            1,369,335 1,651,356
being net assets                                 
                                                  ________ ________
                                                 
                                                           
Capital and reserves                                       
Called-up equity share capital                    983,273    983,273
Share premium account                           1,669,145  1,669,145
Profit and loss account                        (1,283,083)(1,001,062)
                                             
                                                ________   ________
                                          
Total equity shareholders' funds                1,369,335 1,651,356
                                               
                                                ________   ________
                                                                              
                         
Signed on behalf of the Board on 29 June 2000


P.J. Bassett      Director
P.K. Wilde        Director


Reconciliation of operating loss to net cash outflow from operations
For the year ended 31 December 1999
                                                           
                                                           
                                                      1999      1998
                                                       £          £
Operating loss                                    (369,323) (941,327)
                                                  
Depletion and amounts written off tangible fixed    32,777   292,416
assets
Depreciation                                         8,477     7,246
Amounts written off intangible fixed assets         83,382       -
Provision for decommissioning                         -      345,675
Decrease in debtors                                 87,225   491,511
Decrease in creditors                              (40,572) (260,265)
                                                          
Decrease in stocks                                    -       77,965
                                                   ________  ________
                                                  
Net cash (outflow) inflow from operations         (198,034)   13,221
                                                  
                                                  ________ ________
                                                  
                                                           

Consolidated cash flow statement
For the year ended 31 December 1999


                                                     1999      1998
                                                        £         £
Net cash (outflow) inflow from operations         (198,034)   13,221
                                                  
Returns on investments and servicing of             24,474   (21,325)
finance
Capital expenditure                                662,331  (628,160)
                                                           
                                                  ________ ________

Net cash inflow (outflow) before                  488,771  (636,264)
financing                                                  
Financing                                          -        711,255
                                                  ________ ________
                                                  
Increase in cash                                  488,771    74,991
                                                  ________ ________