Statement re. Suspension

LEPCO plc
28 June 2002


                      LEPCO plc ('LEPCO' or the 'Company')


      Proposed acquisition of Sterling Energy Limited (the 'Acquisition')

                                      and

                             Placing and Open Offer

The Board of Directors of LEPCO plc, the AIM oil & gas company, are delighted to
announce that it has, subject principally to funding, conditionally agreed to
acquire the entire issued share capital of Sterling Energy Limited ('Sterling')
for a consideration of £9.5 million (based on the mid-market price of 5p per
LEPCO share), to be satisfied by the issue of new ordinary shares of 1p each in
the Company ('New Ordinary Shares'). The acquisition of Sterling will provide
LEPCO with a major increase in its North American oil and gas production and
reserves, drilling upside and an experienced executive management team with a
significant share interest in the enlarged group. As at 31 December 2001,
Sterling had net assets of £105,001 and in the period from incorporation on 10
October 2000 to 31 December 2001 Sterling reported profit after tax of £105,000
on turnover of £1,874,000.


A condition of the Acquisition is the requirement for LEPCO to raise additional
working capital primarily in order to fund the development of Sterling's
existing assets. Consequently, the Company proposes to issue new equity for cash
via a placing to institutional and other investors (the 'Placing') whilst also
allowing existing shareholders to participate in the fundraising by way of an
open offer (the 'Open Offer').


The Acquisition is considered to be a reverse take-over under the AIM rules by
virtue of its size and will in due course be subject to shareholder approval.
The Company has today requested a suspension of trading in its ordinary shares
on AIM until such time as an explanatory circular containing further details of
the Acquisition and the Placing and Open Offer is sent to shareholders.


The Company's annual results for the year ended 31 December 2001 have been
published today and the Annual Report is being posted to shareholders.


Contacts:

Harry Wilson, Chairman                               Tel: [phone]
Graeme Thomson, Finance Director                     Tel: [phone]

Geoff Nash, Beeson Gregory                           Tel: [phone]
Henry Turcan, Beeson Gregory                         Tel: [phone]



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