Transaction Update

LEPCO plc
20 April 2001

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

           Proposed acquisition of Yemen asset from DNO ASA ('DNO')

Following the announcement made on 26 October 2000 concerning the proposed
transaction with DNO, LEPCO announces that negotiations have been terminated.

A further announcement will be made shortly.


20 April 2001