Interim Results

LEPCO plc
26 October 2000


LEPCO plc ('the Company')

INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 2000

LEPCO  plc,  the oil production and exploration Company,  today
announced  its  unaudited  interim results  for  the  six-month
period to 30 June 2000.

Chairman's Statement

The  twin shocks of the dramatic fall in oil prices in 1998 and
its subsequent rise have had far reaching implications for both
the  industry and the global economy.  The fall in  oil  prices
created a world of near-zero spend on new oil developments  and
the  disappearance of many smaller oil and gas companies.   The
rapid rise in prices to over $30 per barrel merely reduced  the
potential for the re-birth of the smaller independents  as  the
oil majors became increasingly unwilling sellers of assets.

The Board has been actively reviewing a number of opportunities
to  grow  significantly the Group's business and I am delighted
that  we have announced today that we have now an agreement  of
intent  for a transaction with DNO ASA.  This transaction  will
give  shareholders access to oil assets in the Middle East  and
the  Group  has  also  agreed a new  £250,000  working  capital
facility  with DNO to assist in the Group's funding whilst  the
transaction  is  put  in place.  The DNO  transaction  will  be
subject to shareholder approval and other consents.

Interim Results

In  the attached interim results for the six months to 30  June
2000, overhead costs resulted in the Group reporting an interim
loss of 0.8p per share (1999: 1.4p).  During this period, LEPCO
has continued to add value to its Southern Gas Basin portfolio.
The  seismic  interpretation on Block 47/9c  was  completed  in
August  2000  and in the first half of this year,  the  Company
spent  £153,000 on completing the necessary work on this block.
As previously announced, from this evaluation we concluded that
block 47/9c contains a potentially commercial gas discovery and
we  have  advised the Department of Trade and Industry that  we
will  commit  to drill a well on the block subject  to  finding
suitable  farm-in partners, which we are now actively  seeking.
In July we were  awarded our first UK onshore licence in the UK
9th  Onshore Round with a 20% equity in PEDL071 on the southern
margin  of  the  Cleveland basin.  PEDL071, operated  by  Egdon
Resources, is in the same geological basin as block 47/9c.

I  believe  that  the  DNO deal provides the  Company  with  an
exciting  opportunity to move forward and  I  look  forward  to
keeping shareholders informed of progress.

Peter Bassett
Chairman


For further information contact:

     Peter Wilde         Managing Director, LEPCO plc    020-7233 5245
     Chris Callaway      Beeson Gregory                  020-7488 4040

26 October 2000


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  £79,842  (1999  -  loss  after  taxation
  £137,470), and the weighted average number of shares in issue
  during the period of 9,846,269 (1998 - 9,832,733).

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 2000 and 30 June 1999 and
  the results and cash flows for the 6 months ended 30 June 2000
  and  the comparatives for the 6 months ended 30 June 1999 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 1999.

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

7)   The Group's primary unevaluated oil and gas interest at 30
  June  2000  is  in licence P.775 (book value  30  June  2000,
  £861,683), covering acreage on block 47/9c in the UK Southern
  Gas Basin and which includes an unappraised gas discovery.  The
  Group has operated block 47/9c since November 1999.  There are
  certain carried interests and the Group's net equity interest
  is  89.5%.  The  Group  completed a full  evaluation  of  the
  prospectivity  of  block  47/9c in August  2000.   From  this
  evaluation  the  Group concluded that the  block  contains  a
  potentially commercial discovery and advised the UK Department
  of Trade and Industry that it is committing to drill a well on
  the block subject to finding suitable farm-out partners.
  
  The   Directors  have  fully  considered  and  reviewed   the
  potential value of this licence, including analysis  made  by
  an   independent   consultant.   The  Directors   have   also
  considered the likely opportunities for realising  the  value
  of  the  licence, either by the farm-out of the asset leading
  to the development of the discovery or by the disposal of the
  asset,   and  have  concluded  that  the  likely   value   is
  significantly in excess of its net book value.
  
8)    The  Group  has an interest in the Donkerbroek concession
  onshore the Netherlands and it is understood that the operator
  of  the field - Nederlandse Aardolie Maatschappij  B.V. -  is
  reviewing the prospectivity of and future activities on  this
  licence.  The Board will reconsider the carrying value  (book
  value 30 June 2000, £152,184) of this asset once the results of
  this review are known.

9)   In September 2000 HM Customs & Excise notified the Company
  of a potential claim for VAT input tax reclaimed in 1997 at the
  time  of  the Company's listing on the Alternative Investment
  Market.   The claim is for approximately £40,000. The Company
  has  provided  HM Customs & Excise with full  information  in
  respect of the claim and the Directors believe that the matter
  will  be  finalised at no material cost to the  Company.   No
  provision  has  therefore been made for this  matter  in  the
  accounts.

10)   Further copies of this interim statement are available on
  request from the Company Secretary, LEPCO plc, Vigilant House,
  120 Wilton Road, London SW1V 1JZ.


LEPCO plc ('the Company')

DNO  ASA  ('DNO')  and  LEPCO  plc  ('LEPCO')  have  signed  an
agreement  of intent for LEPCO to acquire oil assets in  return
for  ordinary shares in the Company.  DNO is expected to  enter
into  an  agreement, subject to shareholder approval, prior  to
the end of the calendar year.

The asset deal involves the transfer of part of DNO's equity in
Blocks  32  and  53 in the Yemen.  Both blocks are  held  under
Production  Sharing Contracts.  Block 32 contains a  number  of
oil  prospects  and  an estimated 6-million barrel  development
(the Tasour field), which is due onstream later this year.  The
block is operated by DNO.

Block  53 lies due east of Block 32 and in June 2000, a wildcat
well  made  an oil discovery, which flowed at 4,850 barrels/day
under  test  conditions. A further well  is  being  drilled  to
appraise this discovery.

The  transaction  will have an economic  effective  date  of  1
January  2001  and after completion DNO will  hold  a  majority
interest in the share capital of LEPCO.  The agreement will  be
conditional  upon the 'white wash' provisions of the  Panel  on
Takeover and Mergers.

It is proposed to transact the asset-for-equity deal at 16.5p a
share,  that  being the bid price at close of business  on  the
Alternative  Investment Market of the London Stock Exchange  on
Friday 20th October 2000.

The  completion  of the sale and transfer of interests  in  the
Yemen are subject to governmental and coventurer approvals  and
consents being given in a form acceptable to DNO.  In addition,
LEPCO  is  required  to  obtain all  necessary  regulatory  and
corporate approvals.  An Extraordinary General Meeting will  be
held  to approve the transaction and a circular to shareholders
will be despatched in due course.

On  completion of the transaction, the Board and Management  of
LEPCO  will  be restructured.  A majority of the current  Board
members will resign and Berge Gerdt Larsen (Chief Executive  of
DNO  ASA)  and a further nominee of DNO will be appointed.   It
has  also  been  agreed that upon completion of  these  changes
Peter  Bassett will retire as Chairman of the Board  and  Berge
Larsen will be appointed as Chairman of the Board.

In a separate agreement, DNO has agreed to provide LEPCO with a
£250,000 loan facility.
Under  this  facility, DNO is entitled to require repayment  in
either  cash or ordinary shares in LEPCO at the then prevailing
market price.  In the event of DNO requiring repayment in cash,
LEPCO  is  entitled to make repayment in shares to  the  extent
that it is unable to repay in cash.

In  view of the loan facility agreed on 24 October 2000 and the
size  of  the  proposed transaction which will  result  in  DNO
having  control of more than 50% of the Company's issued  share
capital  and DNO having a majority of the Board, the  Directors
have  requested  that  trading  in  the  Company's  shares   is
suspended  until full details of the transaction are circulated
to shareholders.


For further information contact:

     Peter Wilde,Managing Director, LEPCO plc  020 7233 5245
     Chris Callaway Beeson Gregory             020 7488 4040

26 October 2000


Editor's Notes:

LEPCO  plc  is  an  AIM quoted Company whose current  principle
asset  is  a  90% operated WI in a 75 Bcf gas prospect  in  the
Southern  Gas Basin. The Company floated on the AIM  market  in
1997  and  its  management  has been  seeking  ways  to  expand
following  the  sale of its interest in the  UK  Forties  field
after the oil price collapsed in 1998.  LEPCO currently has 9.9
million shares in issue.

DNO  ASA is a Norwegian quoted Company with assets in the North
Sea  and  the  Yemen.  In the UKCS DNO is the Operator  of  the
Heather  field.   In  1996,  Berge  Gerdt  Larsen  acquired   a
controlling interest and restructured the Company's  Board  and
management. In the subsequent four years, the Company's  market
capitalization has grown from £3m to approximately £100m.


                       INTERIM FINANCIAL STATEMENTS                       
                             TO 30 JUNE 2000
                        (Neither audited nor reviewed)
                                                            
                                                            
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2000           
                                            6 months  6 months
                                           30-Jun-00  30-Jun-99
                                                 £        £
Turnover
       Continuing                             11,553     21,779
                                              11,553     21,779
                                                            
Cost    (a)                                                  
of
Sales
       Continuing                              (820)    (5,360)
       Discontinued                                0   (43,329)
                                               (820)   (48,689)
                                                            
GrossProfit (Loss)
       Continuing                             10,733    16,419
       Discontinued                                0  (43,329)
                                              10,733  (26,910)
                                                            
Administrative Expenses
       Continuing                            100,472) (125,258)
                                            (100,472) (125,258)
                                                            
Operating Loss
       Continuing                            (89,739) (108,839)
       Discontinued                                 0  (43,329)
                                             (89,739) (152,168)
                                                            
Interest Receivable and similar income          9,897   14,698

Loss on ordinary activities before and after (79,842) (137,470)
taxation
                                                            
Loss per share                               (£0.008) (£0.014)
                                                            
                                                            
                               6                             
                              months
                              to
Notes:                        30 June     6 months to 30 June                
                              2000        1999
a:Cost of Sales               Continuing  Continuing  Discontinued        
Operating costs                    1,854       3,860        33,336       
Royalty refund                    (1,034)          0             0       
Forties insurance                       0          0         9,993       
Depletion                               0      1,500             0       
                                      820      5,360        43,329       
                                                            
b: The Group's interest in the Forties field was sold during 1998
   and accordingly costs incured in relation to Forties in the 6
   months to 30 June 1999 have been classified as discontinued.

                                                            
INTERIM FINANCIAL STATEMENTS                                
 TO 30 JUNE 2000
(Neither audited nor reviewed)
                                                            
                                                            
CONSOLIDATED
BALANCESHEET
as at 30 June 2000                           30 June  30 June
                                               2000    1999
                                                £        £
Fixed Assets
Tangible Assets                             15,028    24,760
Intangible Assets                         1,029,028  881,198
                                         1,044,056   905,958
                                                            
Current Assets
Debtors                                     73,069    48,695
Cash at bank and in hand                   226,290   598,402
                                           299,359   647,097

Creditors: amounts falling due within     (133,246)  (75,840)
1 year
Net current assets                         166,113   571,257
                                                         
Net assets                               1,210,169 1,477,215
                                                            
Capital and reserves
Called up share capital                    990,273    983,273
Share premium account                    1,672,144  1,669,144
Other reserves                              34,544     35,509
Profit and loss account                 (1,486,792)(1,210,711)
Total shareholders' fund                 1,210,169  1,477,215
                                                           
                                                            

INTERIM FINANCIAL STATEMENTS                                
TO 30 JUNE 2000
(Neither audited nor reviewed)
                                                            

         RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW
                             FROM OPERATIONS 
                 For the six months ended 30 June 2000

                                               June     June
                                               2000    1999
                                                £        £
Operating loss                             (89,739) (152,168)
Depletion costs                                  0     1,500
Depreciation                                 4,221     4,238
(Increase)/decrease in debtors              (1,235)   61,784
Decrease in creditors                      (21,223)  (40,808)

Net cash outflow from operations          (107,976) (125,454)
            
                                                
               CONSOLIDATED CASH FLOW STATEMENT                                 

            For the six months ended 30 June 2000

                                             June       June
                                             2000       1999
                                   Notes     £          £
Net cash outflow from operations         (107,976)  (125,454)
Returns on investments and                  
servicing of finance                        9,897     14,698
Capital expenditure
Disposal of tangible fixed assets               0    876,709
Purchase of tangible fixed assets            (717)   (36,156)
Purchase of intangible fixed assets      (107,399)   (79,279)
Net cash (outflow)/inflow before         (206,195)   650,518
and after financing
(Decrease)/increase in cash     (a)      (206,195)   650,518

The accompanying notes are an integral part of this consolidated
cash flow statement.
                                                            
                                                            
Notes to the cash flow statement
(a) Reconciliation of net cash flow to        June     June
movement in net debt                          2000     1999
                                                £        £
(Decrease)/increase in cash before        (206,195)  650,518
exchange differences
Exchange differences                        (3,753)      417
(Decrease)/increase in cash after         (209,948)  650,935
exchange differences
Net funds/(debt)at beginning of period     436,238   (52,533)
Net funds at close of period               226,290   598,402

(b) Analysis of net funds              1 January            30 June        
                                          2000   Cash Flow  2000              
                                            £       £        £                
Cash in bank and in hand,               436,238  (209,948)  226,290           
being net funds