CERP.L Regulatory News (CERP)

For Immediate Release

19 November 2014

LGO ENERGY PLC

("LGO" or the "Company")

Goudron Drilling Update, Trinidad

LGO is today pleased to announce that well GY-670 has been successfully drilled to a total depth of 4,300 feet measured depth ("MD") and has been electrically logged and cased as a future production well from the C-sand interval. In addition to 206 feet of net oil pay identified on electric logs in the Goudron Sandstone formation and announced on 11 November, a further interval of 242 feet of net oil bearing C-sands have been computed by independent petrophysical analysis performed by LR Senergy.

The net pay in the Gros Morne Sandstone and Lower Cruse, which grade into one another with no defined lithological or pressure differences, have been measured as 242 feet. The previous use of the term C-sands for undifferentiated sands between the pre-Mayaro unconformity (the base Goudron Sands) and the pre-Cruse has therefore been adopted for simplicity.

Well services Rig 20 is preparing to move to the third and final well currently planned from Pad-3, well GY-671, the eighth well in LGO's program of 30 new development wells at the Goudron Field in Trinidad. Following the drilling of GY-671 all three wells are expected to be completed as C-sand producers.

Well GY-671, which is expected to spud in the next few days, will be drilled to a depth of at least 3,198 feet TVD SS (3,389 feet MD) to a target in the C-sands located 700 feet west-south-west of the surface location. A three string casing design, as used successfully on the previous wells on Pad-3, will again be employed including the drilling of a 17 ½-inch top hole section, a 12 ¼-inch intermediate section through the lower Goudron Sandstones and upper Gros Morne and a 8 ½-inch section through the main productive C-sand interval.

Neil Ritson, LGO's Chief Executive, commented:

"Good quality sands were encountered with significant net oil pay below the Goudron interval previously reported and it is expected that well GY-670 will be completed as a C-sand producer in December. LGO is delighted with the continued success of this program and looks forward to further drilling and production results in the remainder of the year."

A summary of the drilling program results to date is given in the Appendix below.

Competent 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.

Enquiries:

LGO Energy plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Pelham Bell Pottinger

Appendix:

All depths are quoted as measured depth in feet below Kelly bushing

** Currently being reassessed

Glossary:

C-sand: Sandstone reservoirs below the pre-Mayaro unconformity and above the pre-Lower Cruse unconformity encompassing sandstones of equivalent age to both the Gros Morne and the Lower Cruse formations.

Pay: A reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay.

MD: Measured Depth

TD: Total Depth

TVDss: True Vertical Depth sub sea