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