Flow rate of well GY-669 and Goudron Field update

For Immediate Release, Embargoed until 10 am

26 January 2015

LGO Energy plc

("LGO" or the "Group")

Flow rate of well GY-669

and Goudron Field update

LGO is pleased to announce that its most recently completed well, GY-669, at the Goudron Field in Trinidad was perforated on 23 January in the C-sands and is now flowing at a stabilized, but highly restricted, rate of 365 barrels of oil per day ("bopd") of 41 degree API water-free oil through a 10/32" choke with an average well-head flowing pressure of 1,900 psi. Over the last 48 hours the well has flowed at an average rate of 445 bopd. The initial calculated open-hole flow rate of the well is approximately 1,000 bopd.

Neil Ritson, LGO's Chief Executive, commented:

"Well GY-669 is a further highly productive well from our eight well drilling campaign in 2014 and when combined with future drilling will allow us to maintain Group production in excess of 2,000 bopd for many years. Preparations for the 2015 drilling campaign at Goudron are now well underway and we expect to recommence the drilling of additional new C-sand wells as soon as the next drilling pad is completed."

Well GY-669

Well GY-669 was drilled between 5 and 24 October 2014 to a total depth of 3,505 feet measured depth and encountered 229 feet of oil pay in the Goudron Sands and a further 248 feet of pay in the C-sands. A limited zone of 30-feet has been perforated in the C-sands where the clearest oil bearing interval was apparent on electric logs. Other hydrocarbon pay observed on logs is considered to be potentially more gas prone and whilst gas handling facilities are now being developed in the field it was considered prudent to focus on production from a zone where oil pay was confidently predicted. Further C-sand intervals may be completed at a later date.

Field Operations

All eight wells drilled to the C-sand in 2014 have now been completed and are all producing oil. The majority of the wells are free flowing with individual restricted rates up to 1,000 bopd per well. Wells GY-666, GY-668 and GY-671 have been re-completed with conventional pumps in order to improve their long-term production characteristics. All free-flowing wells are operating on restricted chokes to maintain stable sustainable production plateau rates. The optimum choke size is determined by means of testing and ensures that sand and water are not produced in order to achieve the best overall production volume over time. All wells in the 2014 drilling campaign are producing water free oil.

Application has been made for the installation of both an additional 5,000 barrel storage tank and for a Lease Area Custody Transfer (LACT) meter in order to maintain the efficient export of oil from the field. With the assistance of the Petroleum Company of Trinidad and Tobago ("Petrotrin") Goudron Field is making sales 7 days a week and the field is not expecting to experience any sales restrictions.

Competent 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 35 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.

Enquiries:

LGO Energy plc

Beaumont Cornish Limited

Old Park Lane Capital Plc

Pelham Bell Pottinger

Glossary:

API: American Petroleum Institute

C-sand: Sandstone reservoirs below the pre-Mayaro unconformity and above the pre-Lower Cruse unconformity encompassing sandstones of equivalent age to both the Gros Morne and the Lower Cruse formations.

calculated

open-hole flow

rate: A mathematically derived theoretical maximum flow rate that a well could deliver with zero back-pressure at the middle of the perforated interval

pay: A reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay.

psi: pounds per square inch