CERP.L Regulatory News (CERP)

For Immediate Release

4 December 2015

LGO ENERGY PLC

("LGO" or the "Company")

Settlements with Various Creditors

LGO Energy plc (LSE AIM: LGO) today provides an update on its plans for the payment of certain creditors in Trinidad and elsewhere.

Having reached agreement on 26 November with BNP Paribas on the crystallization of the existing funds drawn down in March under the pre-paid swap arrangements for the drilling of seven wells in the Goudron Field in Trinidad, LGO today announces planned settlements with a number of its drilling creditors in Trinidad.

A number of creditors of LGO's wholly owned subsidiary, Goudron E&P Limited, have agreed to be paid by the Company in shares through an approved placing agent in London who will ensure an orderly market if and when the shares are sold. The total value of invoices being settled is approximately £0.9 million of a net creditor balance of approximately £1.6 million, exclusive of remaining drilling funding of approximately £2.7 million drawn down from the BNP Paribas facility and ultimately available to pay creditors subject to further agreement with BNP Paribas.

Wellford Capital Markets, LLC and Height Securities, LLC, LGO's US advisors have also agreed to the payment of their initial retainer, totaling US$50,000, in LGO shares.

All shares will be priced on the basis of the mid-market closing price on the day prior to their issue and further announcements will be made when the shares are allotted and application made for them to trade on the Alternative Investment Market.

Neil Ritson, LGO's Chief Executive, commented:

"To conserve cash resources to deploy in production related activities the Company has agreed to make various payments on behalf of its subsidiary in Trinidad for services received in the 2015 drilling campaign at Goudron. We appreciate the flexibility shown by these creditors and look forward to working with them in the future."

The Company continues to work closely with its US advisors, Wellford and Height, on strategic investments into the business to fund the future development program at the Goudron Field in Trinidad.

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