£1.95 million Share Issues

For Immediate Release, 7 am

16 March 2016

LGO ENERGY PLC

("LGO" or the "Company")

£1.95 million Share Issues to Raise Funds and Settle Operational Creditors

and

Total Voting Rights

LGO today announces that the Company has raised £1.06 million before expenses (£0.98 million after expenses), by way of a Company arranged placing of 424,209,334 new ordinary shares of 0.05p each ("the Initial Placing Shares") at a placing price of 0.25p per share ("Placing Price"). The Company has also raised a further £0.30 million before expenses (£0.28 million after expenses) at the Placing Price subject to shareholder approval at a General Meeting to be called as soon as practical.

The net funds raised by way of the Initial Placing Shares will be used as working capital by the Company in order to fund the Group's key commitments over the next few months and to maintain the development momentum of the Goudron Field development. These funds will allow the Company to bring payments to the Company's bankers, BNP Paribas, up to date until May 2016 and continue the oil production enhancement work recently announced.

Further to the Settlements with Various Creditors announcement released on 4 December 2015, the Company confirms that the Board has also approved the allotment of 235,995,235 new ordinary shares of 0.05p each at the Placing Price ("Service Shares"), to be issued at the same time as the Initial Placing Shares, to Tucker Energy Services Limited ("Tucker") and Baroid Trinidad Services Limited ("Baroid") in settlement of £590,000 for services previously contracted in Trinidad by Goudron E&P Limited ("GEPL"), a wholly owned subsidiary of LGO. Tucker is a privately owned Trinidadian service company which provides vital wireline services in support of the planned well work at the Goudron Field. Baroid is a joint venture with Tucker which provides drilling fluids to GEPL operations.

Neil Ritson, LGO's Chief Executive, commented:

"We have raised additional equity to provide immediate working capital to the Group. Work is now underway in the Goudron field to raise production levels through the various well work that has recently been announced. The Company is pressing ahead with rebuilding the production potential of its Trinidad assets as oil prices start to recover and where low cost onshore operations have a natural advantage.

The Board is also continuing to pursue longer term solutions to the Company's capital needs including the possible repayment or refinancing of our banking facility and the raising of the required working capital to grow the business."

Application is being made for the admission of the 660,204,569 Initial Placing Shares and Service Shares to trading on AIM and it is expected that this will occur on or around 24 March 2016. These shares will rank pari passu in all respects with the Company's existing issued ordinary shares.

Subsequent to the issuance of these shares, the Company will have 3,954,053,046 ordinary shares in issue.

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