Banking Update

For Immediate Release

4 March 2016

LGO ENERGY PLC

("LGO" or the "Company")

Banking Update

LGO Energy plc (LSE AIM: LGO) today provides an update on its banking arrangements following its announcements on 19 October, 3 and 26 November 2015 and 24 February 2016 concerning the Company's funding activities.

LGO and BNP Paribas have reached agreement on a revision to the indicative schedule of repayments entered into in late November 2015. Under the new agreement the March 2016 installment will be reduced to US$100,000, after which the remaining outstanding balance will be recovered over the following 18 months. A further extension of the period of reduced payments into April would require separate agreement in due course.

The existing covenants, including previous breaches, until remedied, and the associated security arrangements will remain in place until all outstanding repayments have been made. The final repayment under the indicative repayment schedule is due no later than September 2017. As previously announced the debt to BNPP remains in default and on demand.

Neil Ritson, LGO's Chief Executive, commented:

"Whilst the Company welcomes the contribution of BNP Paribas to managing short-term cash flow, which remains tight in this period of low commodity prices and reduced field activity, it should be noted that the repayment schedule will require substantial new funding to be raised by the Company which remains uncertain and cannot be guaranteed."

Enquiries: