CERP.L Regulatory News (CERP)

For Immediate Release, 7am

3 November 2015

LGO ENERGY PLC

("LGO" or the "Company")

Corporate and Operational Update

LGO Energy plc (LSE AIM: LGO) today provides an update on Corporate activities following its announcement on 19 October 2015 concerning the loss of well GY-678 at the Goudron Field in Trinidad.

As previously announced, the loss of well GY-678, the downhole equipment it contained and the anticipated production from that well, has significant cost implications for the Company. Delays are occurring in settlement of the remaining capital costs of the recent drilling program, in particular well GY-678, amounting to approximately US$4 million, for which the Company requires BNP Paribas (the "Bank") approval to release specific funds previously drawn-down. Nevertheless, in line with the terms of the banking facility, payments under the pre-paid swap arrangements with the Bank continue to be made as initially planned.

The Company has now reviewed a wide range of options to bridge the funding gap that this loss has created with regards existing drilling creditors as well as future capex and LGO has decided to appoint Wellford Capital Markets, LLC ("Wellford") and Height Securities, LLC ("Height") to jointly advise on strategic investments in the business.

Wellford and Height will be retained for an initial 3 month period, commencing immediately, and will work with LGO's management to define options for longer term sustainability, including sourcing strategic investors and the possible refinancing of the existing Bank loan.

Operations Update

While the work commissioned by LGO with Wellford and Height is progressing, operations at the Company's Goudron Field will continue with operating costs continuing to be met from production revenue, funds held by LGO and those being released by the Bank.

As previously reported, the net oil pay observed in GY-678 was exceptionally thick. No decision has yet been made on the optimum way to access the pay interval, whether that is re-entering and sidetracking or re-drilling the GY-678 well to reach the C-sand net oil pay zone previously drilled and logged in the well. The Group is continuing with the planning work required for a program of activity in the shallow Goudron Sandstone where ubiquitous oil pay has been observed in all 15 wells drilled in the last two years. This work will be conducted using the funds recently raised for that purpose, though the Company anticipates that, until the strategic funding exercise is complete, this work will concentrate on lower cost work-overs and recompletions in the Goudron Sandstone rather than the drilling of new wells.

Recent performance from the Company's Spanish subsidiary, CPS, has been encouraging with September average production of 186 barrels of oil per day ("bopd"). Additional well cleanout work conducted over the summer months has resulted in a substantial increase in production from a number of wells, notably well Ayo-37. Revenues from Spain have also been strengthened through the implementation, in September, of a new sales contract with Saint-Gobain which has sliding scale discounts that bring the realized price closer to Brent marker prices at lower oil prices.

Production from the Company's interests in the South West Peninsula of Trinidad remain stable at previously announced levels.

Group production in the third-quarter is reported as 896 bopd, 6 percent lower than second-quarter. Fourth quarter production will be lower than previously forecast due to the loss of GY-678 production, continuing depletion in the field and the slowing of work on the Goudron Sandstone program.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted to be working with Wellford and Height to address the current shortage of capital to continue to sustain and grow the business. LGO continues to work with BNP Paribas on the deployment of funds already drawn from the pre-paid swap and also on their support in strengthening the business for the longer term."

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for LGO Energy plc, who has over 38 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.

Wellford Capital Markets, LLC

Since its formation in 2009, the Wellford Energy Group and its affiliates have provided strategic advisory and investment banking services to leading energy companies and projects.

The wholly owned subsidiary, Wellford Capital Markets, facilitates debt and equity offerings through private placements. Wellford also provide advisory services for mergers, acquisitions and recapitalizations. Wellford Capital Markets LLC is registered with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).

The Wellford team has considerable experience advising companies on a wide variety of investment banking services. They have successfully raised capital for clients from a variety of traditional and non-traditional sources, including from private equity, high net worth investors, governmental and international sources. For more information please go to Wellford's website at http://www.wellfordenergy.com.

Height Securities LLC

Height Securities is a Washington, D.C. based broker-dealer with a specialized focus. Founded in 2008, Height's mission is to be the premier provider of research and capital markets services in the most heavily regulated sectors of the economy. Height serves institutional investors, public and private companies, government agencies, and others in navigating through an ever-changing global economic and regulatory environment. Height's clients rely on their critical analysis, market awareness, independent perspectives, and sound guidance to help make complex investment and strategic decisions with confidence.

Height's Investment Banking and Corporate Advisory (IBA) group has a unique understanding of how financial, legislative, regulatory, legal, and policy issues can impact investments and corporate operating environments. Their goal is to apply that expertise toward assisting innovative businesses and agencies in navigating through an increasingly complex and competitive capital marketplace. Height conducts business in a variety of sectors, including Energy & Industrials, Financial Services, Healthcare, and Technology, Media & Telecommunications. Height Securities LLC is registered with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). For more information, please visit their website at http://www.heightllc.com.

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