Interim Results - 6 Months to 30 June 1999

LEPCO PLC
28 October 1999


LEPCO plc ('the Company')

INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 1999

LEPCO plc, the oil production and exploration Company, today
announced its unaudited interim results for the six-month
period to 30 June 1999.

Interim Results

The Company incurred a loss after tax of £137,470 compared to a
loss of £541,554 in the period to 30 June 1998.  Turnover
declined to £21,779 (£1,022,660 in 1H98) as a result of the
sale of the Forties field interest in January this year.
Administration costs for the half year were reduced by 30% to
£125,258 (£178,486 in 1H98).  The loss of revenue from Forties
also resulted in a net outflow of cash from operations of
£125,454 against an inflow of £174,896 for the period to 30
June 1998.

Southern Gas Basin Interests

In July, the Company announced that it had reached agreement
with Mustang Oil Limited ('Mustang') to rationalise LEPCO's
portfolio of UK Southern Gas Basin assets.  The agreement with
Mustang has now been completed and all the necessary
governmental consents have been obtained including LEPCO
becoming, for the first time, an offshore exploration operator
in the UK.  It is expected that all aspects of the transaction
will be completed shortly.

The rationalisation will result in LEPCO acquiring both the
operatorship and effectively all of the equity in Block 47/9c
(subject to small carried interests).  In return, LEPCO will
transfer all its interests in Blocks 44/27c, 49/1c, 49/2b and
49/2c to Mustang.

Block 47/9c contains a gas appraisal prospect close to the
southern part of the Easington Catchment Area development.
Phase I of this BG plc operated project begins production this
year and includes the Mercury field on the immediately adjacent
block 47/9b.

Proposed Dutch Acquisitions

The Company announced in June an in-principle agreement to
acquire a producing gas interest in the Netherlands.  Progress
on this acquisition has been slowed by the operator's
reassessment of the field's reserve base.  LEPCO continues to
believe that a firm agreement can be reached on this
acquisition and hopes to make an announcement about this and
other Dutch purchases in the near future.

Shareholder Information Meeting

At the Company's AGM on 29 July the Chairman announced that the
Board would be holding a shareholder information meeting.  This
meeting will be on Friday, 19 November 1999 at 4.30pm at the
offices of Beeson Gregory, the Company's nominated adviser.


LEPCO Chairman, Peter Basset commented:

'The last 18 months have been a traumatic period for the
industry. The impact of low oil prices in 1998 and the first
half of this year is still creating a slow-down in activity.
For instance, last month drilling in the North Sea fell again
and currently only 60% of all rigs in the European sector are
in use.  North Sea oil prices averaged just $13.70/barrel in
the first half of the year and this, coupled with last year's
low of $9.45/barrel, has resulted in many smaller oil companies
being financially stretched.

LEPCO is fortunate therefore to have cash.  In recent months we
have made good progress in rationalising our UK Southern Gas
Basin activity, being approved as an exploration operator in
the UK, and towards our principal priority of acquiring quality
producing assets.  I look forward to keeping you informed of
developments in an increasingly helpful oil price environment.'

For further information contact:

     Peter Wilde         Managing Director, LEPCO plc  0171-233 5245
     Chris Callaway      Beeson Gregory                0171-488 4040



INTERIM FINANCIAL STATEMENTS
TO 30 JUNE 1999
(Neither audited nor reviewed)

                                                                 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30June 1999


                                          6 months      6 months
                                          30-Jun-99    30-Jun-98
                                                
                                                  £         £
                                                                 
Turnover                                                         
         Continuing                             21,779      9,819
         Discontinued (b)                            0  1,012,841
         
                                                21,779  1,022,660
                                                                 
Cost of Sales (a)
         Continuing                             (5,360)    (5,540)
         Discontinued                          (43,329)(1,381,731)
         
                                                (48,689)(1,387,271)
                                                    
   Gross Profit (Loss)                                                        
         Continuing                               16,419     4,279
         Discontinued                            (43,329) (368,890)


                                                 (26,910) (364,611)
                                                      
                                                                 
Administrative Expenses

        Continuing                              (125,258) (178,486)
                                                (125,258) (178,486)
                                                    
                                                                 
Operating Loss                                                         

         Continuing                            (108,839) (174,207)
         Discontinued                           (43,329) (368,890)
                                                
                                               (152,168) (543,097)
                                                    
                                                                 
Interest  Receivable and similar income          14,698     1,543
Loss on ordinary activities before 
and after taxation                             (137,470) (541,554)

                                                                 
Loss per share                                  (£0.014)   (£0.073)

                                                                 
Notes:                                  6 months to        6 months to
                                       30 June 1999        30 June 1998

a: Cost of Sales                  Continuing Disconting Continuing Discontinued
                                                                    

Operating costs                        3,860   33,336    5,540   944,842
Exceptional write off of abortive costs    0        0        0   167,190
Forties insurance                          0    9,993        0    52,105
Depletion                              1,500        0        0   133,675
Provision for abandonment                  0        0        0    83,919
            
                                       5,360   43,329    5,540 1,381,731
                                                                 
b: The Group's interest in the Forties field was sold during 1998 and 
accordin gly its share of the results for the 6 months to 30 June 1998 has
been reclassified as discontinued operations.  Costs incured in relation
to  Forties in the 6 months to 30 June 1999 have also been classified as
discontinued.

                                                                 
INTERIM FINANCIAL STATEMENTS
TO 30 JUNE1999
(Neither audited nor reviewed)
                                                                
                                                                 
CONSOLIDATED BALANCE SHEET
as at 30 June 1999                             30 June   30 June
                                                  1999      1998
                                                  £         £
Fixed Assets
Tangible Assets                                  24,760  1,664,606
Intangible Assets                               881,198    936,836

                                                905,958  2,601,442
                                                                 
Current Assets
Stock                                                 0     87,635
Investments                                           0    106,647
Debtors                                          48,695    316,763
Cash at bank and in hand                        598,402      1,960
                                                647,097    513,005
                                                                 
Creditors:                                      (75,840)(1,084,796)
amounts falling due within 1 year
Net current assets/(liabilities)                571,257   (571,791)
                                                               
Provisions for liabilities and charges                0   (559,779)

Net assets                                    1,477,215  1,469,872
                                              
                                                                 
Capital and reserves
Called up share capital                         983,273   742,883
Share premium account                         1,669,144 1,138,060
Other reserves                                   35,509    91,368
Profit and loss account                      (1,210,711) (502,439)
Total shareholders'funds                       1,477,215 1,469,872


INTERIM FINANCIAL STATEMENTS
TO 30 JUNE 1999
(Neither audited nor reviewed)
                                                                 
         RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW
                       FROM OPERATIONS
                     For the six months ended 30 June 1999


                                                 June      June
                                                 1999      1998
                                                  £         £
Operating loss                              (152,168)  (543,097)
Depletion costs                                1,500    133,675
Depreciation                                   4,238      4,206
Provision for decommissioning                      0     83,919
Exceptional write off of abortive costs            0    167,190
Decrease in debtors                           61,784     73,316
(Decrease) increase in creditors             (40,808)   265,357
Increase in stocks                                 0     (9,670)

Net cash (outflow)/inflow from operations    (125,454)  174,896
                                          
                                                                 
                    CONSOLIDATED CASH FLOW STATEMENT                          
                
                     For the six months ended 30 June 1999

                                                 June     June 1998
                                                  1999
                                        Notes        £         £

Net cash(outflow)/inflow from operations       (125,454)   174,896
Returns  on investments and servicing            14,698      1,543
of finance
Capitalexpenditure
Disposal of tangible fixed assets               876,709          0
Purchase of tangible fixed assets               (36,156)  (268,692)
Purchase of intangible fixed assets             (79,279)  (188,369)
Net cash inflow/(outflow)before financing       650,518   (280,622)
Financing                                             0          0
Increase/(decrease) in cash and  cash 
equivalents          (a)                        650,518   (280,622)
The accompanying notes are an integralpart of this consolidated cash
flow statement.
                                                                 

                                                                 
Notes to the cash flow statement                                              
         
(a)                                              June   June 1998
Reconciliation of net cash flow to movement      1999
in net debt  
                                                    £         £
Increase/(decrease) in cash                    650,518 (280,622)
before exchange differences
Exchange differences                              417    19,409
Increase (decrease) in cash after              650,935 (261,213)
exchange differences
Net debt at beginning of period               (52,533) (129,340)
Net funds/(debt) at close of period           598,402  (390,553)

                                                                 
(b)                             1 January              30 June       
Analysis of net debt
                                  1999    Cash flow     1999        
                                £          £             £          
 Cash in bank and in hand        44,559    553,843       598,402   
 Overdrafts                     (97,092)    97,092             0     
 Net funds (debt)                (52,533)   650,935      598,402     


Notes to the financial statements

1)   The Directors do not propose to pay an interim dividend.

2)   Earnings per share have been computed on the basis of loss
  after  taxation  of  £137,470 (1998  -  loss  after  taxation
  £541,554), and the weighted average number of shares in issue
  during the period of 9,832,733 (1998 - 7,482,833).

3)    This  statement does not comprise statutory  accounts  as
  defined in section 240 of the Companies Act 1985.

4)   The balance sheets as at 30 June 1999 and 30 June 1998 and
  the results and cash flows for the 6 months ended 30 June 1999
  and  the comparatives for the 6 months ended 30 June 1998 are
  neither audited nor reviewed.

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 1998.

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

7)    Cash  at  Bank  has increased due to the receipt  of  the
  proceeds  of  the  sale to BP Exploration  Operating  Company
  Limited of the Company's interest in the Forties field.   The
  transaction  was  accounted  for  in  the  Company's  audited
  financial  statements to 31 December 1998 as  there  were  no
  conditions  precedent  at that date.  Completion  was  on  28
  January 1999.

8)    A  transaction has been agreed with Mustang  Oil  Limited
  ('Mustang') (the current operator of the Company's UK Southern
  Gas  Basin  interests) to reorganise our interests  in  those
  licences.  As  a result of the agreement, LEPCO will  acquire
  effectively  all of the equity in licence P.775  (subject  to
  small carried interests) and will be appointed as operator of
  that  licence.   In  consideration for this transaction,  the
  Company  will assign its interests in licences P.838,  P.846,
  P.847 and P.848 to Mustang, together with the shares that LEPCO
  holds in Mustang.  This transaction is a variation to a number
  of transactions previously agreed with Mustang.

9)    The  potential  impact of the Year 2000  problem  on  the
  business has been considered and the directors have concluded
  that :-

  a)    The risks are small and their impact is unlikely to  be
     material in the context of the business operations.
b)   The basic software used in the business is understood to
be Year 2000 compatible and there are no significant interfaces
with customers, suppliers or other relevant parties.
c)   No significant expenditure has been incurred or is
anticipated on computer applications in the foreseeable future.

10)   Further copies of this interim statement will be sent  to
  shareholders shortly and are also available on request from the
  Company Secretary, LEPCO plc, Vigilant House, 120 Wilton Road,
  London SW1V 1JZ.