Reorganisation of UK Southern Gas Basin Interests

LEPCO plc
17 November 1999

                   LEPCO plc ('the Company')

LEPCO  plc, the oil production and exploration Company,  today
announced completion of the reorganisation of its UK  Southern
Gas Basin interests.

The  Company  has  previously 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.

The  rationalisation  results  in  LEPCO  acquiring  both  the
operatorship and effectively all of the equity in Block  47/9c
(subject  to  small  carried  interests).   In  return,  LEPCO
transfers 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.

LEPCO's Chairman, Peter Bassett, commented:

'This  reorganisation, together with LEPCO's  appointment  for
the  first time as operator, is a useful development  allowing
the  Group  to concentrate its Southern Gas Basin activity  on
appraising the commercial viability of this discovery.'

For further information contact:

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