CERP.L Regulatory News (CERP)

For Immediate Release

15 April 2015

LGO ENERGY PLC

("LGO" or the "Company")

Goudron Drilling and Field Update

LGO is pleased to announce the spud of the first well in its 2015 seven well development program at the Goudron Field in Trinidad. Well Services Petroleum Company Limited's Rig-70, under contract to LGO, has been mobilised to the recently constructed drilling pad, Pad 4, and commenced drilling operations yesterday on well GY-672.

Wells GY-672, 673 and 674 are planned to be drilled back-to-back from Pad 4 and completed as C-sand producers once all three wells have been drilled, logged and cased. Well GY-672 is planned to be drilled to a total depth of 3,505 feet measured depth ("MD") and is targeting a C-sand reservoir interval approximately 420 feet to the east of the surface location. Wells in the 2015 program will deploy the successful three-casing design developed during 2014 and will use continuous logging by means of measurement-whilst-drilling ("MWD"), as piloted on well GY-671, to increase the efficiency and accuracy of the drilling process. The top Gros Morne sandstone reservoir is anticipated at 2,200 feet MD (2,000 feet sub-sea).

Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") has now laid the majority of new 4 1/2-inch OD pipeline to upgrade the existing 2 7/8-inch export pipeline from the Goudron Field and is now awaiting a pipeline crossing agreement between Petrotrin and the owners of the major gas pipelines lying just outside the Goudron field boundary to complete the tie-in. Hook-up and commissioning is expected shortly. Substantial progress is also being made with the installation of additional tank storage and the lease area custody transfer meter (LACT) to assist in the long-term efficient operation of the field.

LGO also plans to conduct approximately 12 well recompletions in existing pumped wells within the field over the coming months. With the increased data on the distribution of reservoirs and well performance obtained from over two years of operation, and the eight successful new wells drilled in 2014, the Company now has recognized targets for recompletion which are believed to offer additional production capacity. The program includes the perforation of 275 feet of known C-sand reservoirs and 955 feet of existing Goudron sandstone reservoirs.

This additional capacity will help to offset the gradual decline in production rates that, as expected, are now being experienced in the free flowing wells and will contribute to achieving the Company's objective of maintaining average production levels close to or above 2,000 barrels of oil per day.

Once the wells on Pad 4 have been drilled Wells Services' Rig-70 will be moved to Pad 5 where four further C-sand production wells are planned. Preparations are also being made for the drilling of up to ten further C-sand wells from Pads 6 and 7 which are being surveyed prior to applications being made for their construction.

Neil Ritson, LGO's Chief Executive, commented:

"Drilling is now underway in a seven well program which is expected to give comparable results to the successful eight wells drilled 2014. Infrastructure, well recompletion and maintenance operations are also continuing apace and we remain excited about the prospects for the field, which has extremely robust economics even at low oil prices."

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 35 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.

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