Update on UK Southern Gas Basin Activity

LEPCO plc 9 May 2000 Update on UK Southern Gas Basin Activity In November 1999 the Company announced that it had completed a reorganisation of its UK Southern Gas Basin interests acquiring effectively all of the equity on block 47/9c (subject to small carried interests) and, for the first time, becoming an offshore operator in the UK. Block 47/9c contains a significant gas prospect close to the southern part of the Easington Catchment Area. Phase I of this project, including the Mercury field on the immediately adjacent block 47/9b and operated by BG plc, recently commenced production. Having reviewed previous activity on block 47/9c and its prospectivity, the Company is now pleased to announce that it has reached agreement for further evaluation of block 47/9c in preparation for a possible farm-out and appraisal programme. Agreement has been reached with Montrose Industries Limited ('Montrose'), a company controlled by Dr Richard Stabbins (formerly Exploration Director of Goal Petroleum plc) for Montrose to earn a 5% equity interest in the block in return for them providing the services of Dr Stabbins to manage the evaluation programme. The assignment to Montrose is subject to the consent of the Secretary of State for Trade and Industry. A further agreement has also been made with IKODA Limited ('IKODA') to conduct an evaluation of 3-D seismic and other data on the block and, as part of these contractual terms, IKODA has agreed to accept part of their payment in ordinary shares in the Company. Accordingly, an application has been made for the listing of 70,000 ordinary shares of 10 pence each being issued to IKODA. The Company is also continuing negotiations and discussions on a number of opportunities to acquire producing oil and gas interests in both the UK and the Netherlands. For further information contact: Peter Wilde Managing Director, LEPCO plc 020 7233 5245 Chris Callaway Beeson Gregory 020 7488 4040

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