Issue of Equity

LEPCO plc
20 September 2001

                                  Lepco plc

            Lepco plc issues shares at 7p to norwegian oil company


LEPCO plc ('LEPCO' or 'the Company'), the AIM listed oil and gas company,
announces that it has issued 3,760,000 new ordinary shares to DNO, the
independent Norwegian oil company, at 7p per ordinary share ('DNO Shares').
DNO will have a stake of approximately 9.6% in LEPCO following the issue of
the DNO Shares.


The DNO Shares are in full satisfaction of the loan and interest of £263,200
due to it by the Company. An application for these DNO Shares to be admitted
for listing on the Alternative Investment Market ('AIM') has been made and
admission and dealings on AIM are expected to become effective on 21st
September 2001. Following admission of these shares to AIM, the floating
charge held by DNO over the assets of the Company will be released. The issue
of the DNO Shares brings LEPCO's total number of ordinary shares of 1p each in
issue to 39,042,733. A total of 24,755,000 warrants to subscribe for ordinary
shares at 6p are also in issue and can be exercised no later than 30 June
2003.

Mr Harry Wilson, who was appointed as Chairman of LEPCO on 18th July, said
'The Board is very pleased to welcome DNO as a major new shareholder and we
look forward to working with them. Their expertise in our industry is
internationally known and their participation will assist in the development
of LEPCO.'

In July 2001 LEPCO completed an Open Offer to raise £990,200 and appointed
three new directors to the Board.

For further information please contact:

Mr Harry Wilson, Chairman, LEPCO plc     )

Mr Graeme Thomson, Director, LEPCO plc   )     on [phone]

Mr Christopher Callaway, Beeson Gregory        on [phone]



20 September 2001