LASMO plc announces North Sea deal with British Petroleum.

LONDON--(BUSINESS WIRE)--Nov. 9, 1995--LASMO PLC (TSE, ME, NYSE:LSO) LASMO plc, the international oil and gas exploration and production company, today announced that its wholly-owned subsidiaries, LASMO (ULX) Limited and LASMO North Sea PLC, have agreed to the transfer of their respective 1 percent interest in the Forties field to BP Exploration Operating Company Limited and 15 percent interest in the Beatrice field and related facilities to Britoil plc.

LASMO's combined net daily production from the two fields in the first half of 1995 amounted to 2,607 bopd.

The transaction, which has an economic effective date of July 1, 1995, also includes:

(a) a waiver by BP of LASMO's obligations in respect of the development of the Columba Terraces;

(b) a waiver by LASMO of BP's potential future liability (as successor to BNOC in block 13/29a) for any payment under the Sixth Round arrangement known as the Ross carry; and

(c) a balancing cash payment by BP to LASMO.

The LASMO field interests have an aggregate negative book value, after abandonment provisions, of 10.3 million pounds sterling.

John Hogan, LASMO plc's Chief Operating Officer, said today: "This transaction balances value for both companies and brings clear benefits for both. For LASMO, the deal is a further step in reducing the Company's exposure to mature, high operating cost fields with a near term abandonment liability. The deal is expected to realize a pre-tax gain on disposal for LASMO in 1995 of some of 13 million pounds sterling, largely due to the release of past accounting provisions.

"The removal of the Ross carry should, in our opinion, also encourage development of an oil accumulation which has commercial potential and in which we have recently increased our equity interest."

In addition to LASMO's listing on the New York Stock Exchange, LASMO shares trade on the London, Toronto and Montreal Stock Exchanges. Shares are quoted on the SEAQ System, and prices may be accessed on the Reuter Equities 2000 Service under the symbol LSMR.L and on Quotron under the symbol LSMRU.EU. (Notes available upon request)

CONTACT: Brian J. Rafferty

Taylor Rafferty Associates, 212-889-4350

or

Paul Murray

LASMO plc

011-441-71-945-4545