CERP.L Regulatory News (CERP)

For Immediate Release

28 August 2015

LGO ENERGY PLC

("LGO" or the "Company")

Initial Production Rates Pad-5, Goudron Field, Trinidad

LGO today announces that production testing is now underway on wells GY-676 and GY-677, the second and third wells drilled on Pad-5 in the Goudron Field in Trinidad. After initial clean up, well GY-677 delivered a maximum natural flow rate of approximately 380 barrels oil per day ("bopd") through a 5/32-inch choke. Well GY-676 has flowed at rates up to 240 bopd through a 9/32-inch choke and is now undergoing further tests through a gas separator in order to better manage gas being produced with the oil.

Well GY-675, which was placed on production last week, flowed at a rate of 240 bopd through a 5/32-inch choke during the main test period. An absolute open-hole flow rate of 850 bopd has been calculated from the production tests and a 5/32-inch choke selected for initial production.

The oil gravity from the three Pad-5 wells is excellent ranging between 34 and 44 degree API. All three wells have been completed in the C-sand reservoir.

Elsewhere in the field, well GY-678 has now reached a depth of 3,198 feet MD and a 30-foot core is currently being cut to provide additional data on the C-sand reservoirs that will be input into future development planning, including the anticipated enhanced oil recovery project.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted that all the Pad-5 wells are being brought on stream successfully. Good initial flow rates and pressures, along with careful production management, are key to LGO remaining a successful low cost oil operator during the current period of prolonged low commodity prices. Managing production decline rates and optimizing the development of the large reserves base at Goudron play a key role in creating a sustainable development. We are now confident that with the experience gained through the last 14 wells, drilling over a 16 month period, that we can achieve that objective."

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.

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