Interim Results

LEPCO plc
28 September 2001


                          LEPCO plc ('the Company')

               INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 2001

LEPCO plc, the AIM-quoted oil production and exploration company, today
announces its unaudited interim results for the six-month period to 30 June
2001.

Successful Open Offer to raise £990,200 and Board Changes

The Chairman, Mr Harry Wilson, said:

'This is my first report to the shareholders of LEPCO since I was appointed
Chairman in July 2001. I am pleased to say that LEPCO's financial condition
has now been put onto a firmer base following the losses of the first half and
the last two years. The completion of the Open Offer to shareholders to raise
£990,200 (before expenses) at 4p per share, details of which were set out in a
circular to shareholders in June 2001, was completed after the period end. A
total of 24,755,000 new ordinary shares were issued.

Richard O'Toole and Graeme Thomson, who are highly experienced commercial and
financial oilmen, have also been appointed to the Board. We now have the
foundations of a team to rejuvenate the Company. The steps of stabilising the
financial position of the Company and the important team-strengthening, are
the first two stages of our strategy to transform the Company into a vibrant
and profitable oil company.

Major Norwegian Company Swaps Debt for Shares

In our third key move, we are pleased that an agreement has recently been
reached with DNO, the Norwegian oil company, to issue it with 3,760,000
ordinary shares, in settlement of a loan and interest due to it of
approximately £263,000. DNO has a 9.6% shareholding as a result and its charge
over all of the assets of the Company has been lifted. We are very pleased to
welcome them as a shareholder and believe their support will be of great
benefit to LEPCO.

Largest Shareholder and Broker

Our major shareholder is Endeavour Oil & Gas Limited Partnership ('Endeavour')
with 26.5%, who effectively underwrote the Open Offer through its General
Partner, Park Resources Limited. Myself and the other two new directors are
partners in Endeavour. We have a number of new shareholders who were placees
in the Open Offer, with a total holding of 19.2%.

We are also very pleased that Beeson Gregory have become both broker and
financial adviser to the Company. Their support and advice will be most
valuable in our development.

Strategy and Short-Term Aims

The next step for us will be to introduce cash flow and exploration assets
into the Company, as well as to further strengthen its balance sheet. We are
convinced that there is a real niche for a well-organised, independent oil
company. Our objective is to secure producing assets which will generate cash
flow for the Company and which has upside potential for further reserves and
cash-generation. We would prefer our initial move to be equity-funded and to
use the cash generated to introduce exploration assets into our portfolio
selectively. The exploration projects will offer large upside potential and
will be principally funded by cash flow from the producing assets. We will
also need to strengthen our technical team at the appropriate time.

Interim Results

The attached financial statements illustrate the deterioration of the
Company's condition in the first half. A loss of £430,000 was incurred. Costs
incurred on an aborted acquisition made up the bulk of this, but the need for
producing income is evident. We intend to keep costs to a minimum until the
Company has further resources and an income stream.

Since the period-end, the Open Offer cash has been received and approximately
£347,000 of amounts due to DNO and the Endeavour Group at the end of June have
been discharged in shares. We now have net current assets as compared with
liabilities at the end of June. Indeed, after payment of our outstanding bills
we have approximately £500,000 in net cash balances. The new board is
reviewing the prospectivity of the existing oil and gas assets, in particular
the Southern North Sea licence 47/9c, for which LEPCO is the operator.

Outlook

I view the outlook for LEPCO with optimism. We are determined to build on the
recovery which has started in the Group's fortunes. Whilst this is an
uncertain time we are convinced that there are opportunities for increasing
shareholder value in the oil and gas sector. We are now focused on achieving
an increase in our producing assets, the strengthening of our technical team
and the introduction of exploration upside into our portfolio. This will give
us the necessary platform to achieve our targets.'

Harry Wilson
Chairman
28th September 2001



For further information please contact:

Harry Wilson, Executive Chairman LEPCO plc               )      01582 463 141

Graeme Thomson, Director and Company Secretary, LEPCO plc     )

Christopher Callaway, Beeson Gregory                    )     0207 488 4040

Geoff Nash, Beeson Gregory                              )




LEPCO PLC INTERIM 2001 FINANCIAL STATEMENTS

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS TO 30 JUNE 2001

(Unaudited)
                                                      6 Months To   6 Months To
                                                     30 June 2001  30 June 2000
                                                           £000's        £000's

Turnover                                                       36            12

Cost Of Sales                                                (16)           (1)

Gross Profit                                                   20            11

Administrative Expenses
                Abortive Acquisition Costs (Note 7)         (301)             -
                Other                                       (124)         (101)
                                                            (425)         (101)

Operating Loss                                              (405)          (90)

Interest Receivable And Similar Income                          1            10
Interest Payable And Similar Charges                         (26)

Loss on Ordinary Activities Before
And After Taxation                                          (430)          (80)


Loss Per Share (Note 2)                                   (4.34p)        (0.8p)





The attached notes form part of this profit & loss statement



LEPCO PLC INTERIM 2001 FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET AT 30 JUNE 2001

(Unaudited)


                                                          As at 30     As at 30
                                                         June 2001    June 2000
                                                            £000's       £000's

Fixed Assets:
Intangible Assets (Note 8)                                     996        1,029
Tangible Assets                                                  7           15
                                                             1,003        1,044
Current Assets:
Debtors (Note 9)                                                54           73
Cash at bank and in hand                                        44          226
                                                                98          299

Creditors:
amounts falling due within one year (Note 9)                 (632)        (133)

Net current (liabilities)/assets                             (534)          166

Total assets less current liabilities,
being net assets                                               469        1,210


Capital and reserves:

Called-up share capital (Note 10)                              990          990
Share premium account                                        1,672        1,672
Other reserves                                                  34           34
Profit and loss account                                    (2,227)      (1,486)

Total equity shareholders' funds                               469        1,210







The attached notes form part of this balance sheet statement





LEPCO PLC INTERIM 2001 FINANCIAL STATEMENTS

CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2001

(Unaudited)
                                                        6 months to  6 months to
                                                       30 June 2001 30 June 2000
                                                             £000's       £000's

Net cash inflow/(outflow) from operations                     (238)       (108)
Returns on investments and servicing of                        (24)          10
finance
Capital expenditure:
Purchase of intangible fixed assets                            (82)       (108)
Net cash (outflow)/inflow before                              (344)       (206)
financing
Financing: debt draw-downs (Note 9)                             340           -
(Decrease)/ increase in cash (see (a)                           (4)       (206)
below)

Notes to the cash flow statement:

(a) Reconciliation of net cash flow to movement in net debt:




                                                         June 2001    June 2000
                                                            £000's       £000's

(Decrease)/increase in cash before
exchange differences                                           (4)        (206)
Exchange differences                                             -          (4)
(Decrease)/increase in cash after
exchange differences                                           (4)        (210)
Debt draw-down                                               (340)            -
Net funds/(debt) at beginning of period                         48          436
Net funds/(debt) at close of period (Note 9)                 (296)          226

(b) Analysis of net funds


                                      1 January      Debt     Cash     30 June
                                           2001     Draws     flow        2001
                                         £000's    £000's   £000's      £000's

Cash in bank and in hand less debt,          48     (340)      (4)      (296)
being net funds/(debt) (Note 9)




RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATIONS FOR THE
SIX MONTHS ENDED 30 JUNE 2001

(Unaudited)


                                                    6 months to     6 months to
                                                   30 June 2001    30 June 2000
                                                         £000's          £000's

Operating loss                                            (405)            (90)
Depletion and depreciation                                    4               4
(Increase)/decrease in debtors                             (24)             (1)
Increase/(decrease) in creditors (Note 9)                   187            (21)

Net cash inflow/(outflow) from operations                 (238)           (108)



The attached notes are an integral part of these statements

LEPCO INTERIM 2001 FINANCIAL STATEMENTS

NOTES


1.  There being no distributable reserves, no interim dividend can
    be paid.


2.  Earnings per share have been computed on the basis of loss on ordinary
    activities after taxation of £430,000 (first half 2000: loss on ordinary
    activities after taxation, £80,000) and the weighted average number of
    9,902,733 ordinary shares of 10p each in issue during the period (first
    half 2000: 9,846,269).

3.  This statement does not comprise statutory accounts as defined
    in Section 240 of the Companies Act 1985. Statutory accounts for the
    year ended 31 December 2000, on which the auditors gave an unqualified
    report, have been filed with the Registrar of Companies.

4.  The balance sheets as at 30 June 2001 and 30 June 2000 and the
    results and cash flows for the 6 months ended 30 June 2001 and the
    comparatives for the 6 months ended 30 June 2000 are neither audited
    nor reviewed by LEPCO plc's auditors.

5.  The financial information included in this document has been
    prepared on a consistent basis and using the same accounting policies
    as the audited financial statements for the year ended 31 December 2000.

6.  The financial information included in this document has been approved by
    the Directors of the Company.

7.  The amount of £301,000 for abortive acquisition costs in the first half of
    2001, comprise the costs associated with the proposal, announced in
    October 2000, to purchase assets in the Republic of Yemen from DNO. In
    April 2001, the Company announced that the acquisition would not proceed.
    Included in this amount are overhead costs of £69,000.

8.  The Group's primary intangible asset is an oil and gas interest in North
    Sea licence P.775, whose book value as at 30 June 2001 is £989,000. This
    licence covers acreage on Block 47/9c in the UK Southern Gas Basin and
    includes an unappraised gas discovery. The Group has operated Block 47/9c
    since November 1999 and has a current net equity interest of 89.5%. The
    Group reported in its 2000 accounts that it had completed a 'full
    evaluation of the Block and concluded that the licence contained a
    potentially commercial gas discovery'. Following that evaluation the Group
    advised the UK Department of Trade and Industry that is was committed to
    drilling an appraisal well on the Block, subject to finding suitable
    farm-in partners to pay the costs of such a well. The Group continues to
    seek such farm-in partners and in July 2001 paid the annual licence fee.


LEPCO INTERIM 2001 FINANCIAL STATEMENTS

NOTE 8 (CONTINUED):


    The recoverability of the book value of this Block is dependent on a
    number of factors such as the finding of a farminee, the terms that
    may be agreed and the commerciality (or otherwise) of any further gas       
    reserves on the Block that may be discovered through future work.

9.  Included in 'creditors; amounts falling due within one year' as
    at 30 June 2001 is a total of £90,126 owed to Park Resources Limited,
    the general partner of Endeavour Oil & Gas Limited Partnership
    ('Endeavour'), who acted as underwriter of the Open Offer (see Note 10). 
     As at the date hereof, Endeavour is the largest shareholder in
     the Company with a 26.5% interest. A total of approximately £30,000 is
     included in 'debtors' for the prepayment of costs relating to the Open
     Offer circular.

     Also included in 'creditors; amounts falling due within one year' as
     at 30 June 2001, is a total of approximately £140,000 (plus vat) of
     invoices relating to the costs of the abortive acquisition set out in
     Note 7 above.

     On 20 September 2001, the Company announced that it had issued
     3,760,000 ordinary shares of 1p each to DNO at 7p per share in
     settlement of the loan and interest due to DNO of £263,200. Included
     in the total of 'creditors: amounts falling due within one year' at 30
     June 2001 was £257,000 for this loan and interest due. The charge over
     the assets of the Group held by DNO has now been released.

10.  At an Extraordinary General Meeting of the Company held on 18
     July 2001, shareholders approved, inter alia;


      - a share capital reorganisation which reduced the nominal value of
        the ordinary shares to 1p each from 10p each and;

      - an Open Offer of a further 24,755,000 ordinary shares of 1p each,
        issued at 4p per share, to raise £990,200 before expenses. A total of
        24,755,000 warrants to subscribe for ordinary shares at 6p each up to
        30 June 2003 were also issued.


        Details were set out in a circular to shareholders dated 20 June 2001.
        The costs associated with this circular are estimated at approximately
        £200,000, of which approximately £40,000 were included in the period
        end creditors. A total of £25,000 of these costs was settled by the
        issuing of shares in July 2001.

        As at the date hereof there are a total of 39,042,733 ordinary shares
        in issue.


11. Further copies of this interim statement are available on request from the
    Company Secretary, LEPCO plc, Mardall House, 7-9 Vaughan Road, Harpenden,
    Hertfordshire, AL5 4HU, United Kingdom, telephone [phone], fax 01582
    461 221