CERP.L Regulatory News (CERP)

For Immediate Release, Embargoed until 7 am

9 February 2017

LGO ENERGY PLC

("LGO" or the "Company")

Update La Lora Concession, Spain

LGO today provides an update on the Ayoluengo Field in northern Spain which was previously operated by its wholly owned subsidiary Compañía Petrolífera de Sedano, S.L.U. ("CPS") until the termination of La Lora Concession on 31 January 2017. Further to its announcement on 30 January 2017 the Company has now initiated the procedure envisaged in the Spanish Royal Decree issued on 28 January 2017 and has formally notified the Spanish Ministry of Energy, Tourism and Digital Agenda ("Ministry") that CPS wishes to immediately commence the process of obtaining a new 30-year production concession covering the Ayoluengo Field.

Neil Ritson, LGO's Executive Chairman, commented:

"LGO holds all the relevant data, experience, technical studies, staff expertise and oil field equipment needed to rapidly re-establish, and further develop, oil production operations at Ayoluengo. We hope that by moving quickly to establish the administrative requirement for a new concession the process can be completed quickly and our Spanish employees can return to paid employment as soon as possible."

Under European Union and Spanish legislation the offer of a new concession requires a process of public tender in which the previous concession holder has preferential treatment. By CPS formally requesting a new concession, CPS and the Ministry hope to be able expedite that process.  

LGO is currently considering various options to apply for a new concession on a sole basis or in partnership with third parties.

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