CERP.L Regulatory News (CERP)

For Immediate Release, 7 am

17 June 2015

LGO ENERGY PLC

("LGO" or the "Company")

Goudron Pad 4 Testing

and Infrastructure Update, Trinidad

LGO today announces its plans for the testing of the three recently drilled wells, GY-672, 673 and 674, on drilling Pad 4 at the Goudron Field, and provides an update on important infrastructure approvals and improvements that are designed to significantly increase oil sales capacity at the field from 2,750 barrels to over 12,000 barrels.

Well Testing:

The Company has now received final approval for the completion of all three wells recently drilled from Pad 4 as production wells. A combined total of 556 feet of perforations are planned across the prolific C-sand intervals in the three wells. The equipment required has been mobilised to the field and work is anticipated to start later this week.

As previously announced each of the new wells will be flow tested with the appropriate pressure build-up tests carried out over the coming weeks. Each well will be subject to a number of periods of flow testing up to 6 hours duration, followed by individual pressure build-up tests (pressure monitoring without flow) of approximately 24 hours. Once the test phase is complete, which may take up to 5 days per well, a stable flow rate will be selected to best manage the reservoir performance of the well in the short and medium term, and provide further information for the completion of further wells on the field. Oil produced from the wells during the test period will be sold.

Infrastructure:

LGO also confirms that it has now received the necessary approvals to construct two 5,000 barrel sales tanks to supplement the existing 2,000 barrel main sales tank and two smaller tanks at Battery #134. The Company is commencing construction of the first of these new 5,000 barrel tanks and the second tank will be added as and when it is required.

The installation of a lease area custody ("LACT") meter has therefore been rescheduled for no earlier than in the 4th quarter of this year. Petroleum Company of Trinidad and Tobago ("Petrotrin") has advised that the completion of the new 4-inch sales tie-in pipeline from Battery #134 to the main sales line and on to the Pointe-a-Pierre refinery remains outstanding pending a pipeline crossing agreement with a third party. In the interim additional pumping capacity has been installed on the existing 2 7/8-inch line, along with independent power generation, to eliminate any potential short term bottlenecks, with the additional production from new production wells.

Neil Ritson, LGO's Chief Executive, commented:

"As LGO looks towards the longer term production projections at Goudron, especially the potential of an EOR project, we need to acquire considerably more reservoir data than was historically collected. These new wells have excellent reservoir characteristics on logs and be believe can provide much of the information required as they are brought on to production. In the meantime drilling at GY-675 is continuing at over 360 feet."

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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