Corporate Strategy

The company’s strategy is to acquire proven reserves and enhance production in established fields, concentrating in low-risk countries. The directors have a wide variety of experience and expertise in the oil and natural gas fields, and are working to leverage their knowledge to identify investment opportunities in proven reserve areas as well as underexploited areas which can benefit from an injection of cutting-edge technology and techniques.

LGO Assets

Leni Gas and Oil holds interests ranging from 10 to 100 per cent in various projects in four main areas.

In the US Gulf of Mexico and Trinidad, LGO is partnered with other corporations in development of new oil and natural gas sites in the Gulf, as well as expanding the Icacos operation in Trinidad to reach deeper reserves.

In the area off Malta, LGO owns a 10% interest in an offshore site close to established hydrocarbron reserves. They are evaluating the area for future production.

In Spain, LGO owns 100% of the Ayoluengo oil field, which has been the largest site of Spanish oil production since the 1960s. LGO seeks to enhance current production with updated techniques, taking advantage of facilities already in place from previous operations.

Leni Gas and Oil suffered losses in 2009 related to its relinquishment of Hungarian assets which had proved unprofitable, but has stepped up development of its other assets and expects to accelerate production in its three currently-producing areas while continuing to develop the Malta holding.

Shares of Leni Gas and Oil Plc (LGO) are listed on the London Stock Exchange’s Alternative Investment Market and were at 3.29 p as of 29 October 2010.

Operations Overview

Gold Oil intends to seek low risk cash flow projects by establishing significant license positions within a few geographic areas. It is recognised as both an onshore and off shore operator in Peru and on shore in Colombia. At the end of fiscal year 2009, the company had two exclusive license interests in peru, Block XXI and Block Z34, and three partial license interests in Colombia, the 58.5% Burdine-Maxine-Nancy, the 49% Rosa Blanca, and the 20% Azar Block. Activities on all five licence interests are being actively pursued. Negotiations to farm out part of the 100% interests in Peru have been planned. The main focus on Nancy and Burdine in Colombia is to increase production. An exploration well on the Azar Block may be carried out pending results of seismic interpretation. Exploration on Rosa Blanca has been ongoing, with one testing well drilled back in 2008 and a planned seismic shooting in late 2009. New activities will depend on further seismic and geological work.

Selective Financials

Revenue for fiscal 2009 increased to £1.004m and gross profit was £79,000. But development expenditure and administrative expenses over weighed, resulting in a loss after tax of £3.039m. The situation should be improved after more productions come on line. The company had £2.179m of cash at bank in hand at the end of fiscal 2009, after undertaking two share placings during the year, with one issued at 8p for 22.92m ordinary shares to raise £1.8m and the other at 4p for 16.125m shares to raise £645,000. Because of the capital intensive nature of the business, having that access to capital in building up cash reserves in the current constrained credit market environment provided a much needed funding relieve for the company to allow it to continue operations and move forward with all of its assets.