Fundraising of £2.5 million

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT AMOUNTS TO A FINANCIAL PROMOTION FOR THE PURPOSES OF SECTION 21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 ("FSMA") AND HAS BEEN APPROVED BY DARWIN STRATEGIC LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. PRIMARYBID LTD ("PRIMARYBID") IS AN APPOINTED REPRESENTATIVE OF DARWIN STRATEGIC LIMITED.

This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of LGO or other evaluation of any securities of LGO or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

31 March 2017

LGO Energy Plc

("LGO" or the "Company")

Fundraising of £2.5 million

LGO plc (AIM:LGO), the oil and gas company with reserves, resources and production onshore Trinidad, is pleased to announce a fundraising of £2.5 million (before expenses) by the issue of 113,636,374 new ordinary shares of 0.05p each in the Company ("New Ordinary Shares") at an issue price of 2.2 pence per New Ordinary Share, being a discount of approximately 12 per cent to today's closing mid-price.

The fundraising comprises a placing, including UK and Hong Kong based institutions, of £2.2 million by VSA Capital (the "Placing") in conjunction with a fully underwritten offer of £0.3 million via PrimaryBid (the "Offer") (together the "Fundraising"). The Offer will be open until the earlier of 5.00 p.m. on Sunday 2 April or when £0.3 million of applications are received.

The New Ordinary Shares under the Fundraising have been issued conditional upon their admission to trading on AIM ("Admission"). The Company has made application for Admission of the New Ordinary Shares and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 6 April 2017.

The New Ordinary Shares will rank pari passu in all respects with the Company's existing Ordinary Shares and will be issued fully paid.

The Company will use the net proceeds of the Fundraising to:

· Continue the drilling of Mayaro Sandstone infill wells in the Goudron Field of Eastern Trinidad;

· Close the existing arrangements with Beach Oilfield Limited to acquire a 100% controlling interest and access to their petroleum leases in the SW Peninsula of Trinidad;

· Continue the preparations for a waterflood pilot project in the C-sands at Goudron;

· Commence an independent resource audit of the SW Peninsula assets leading to the issue of a Competent Persons Report; and

· Corporate overhead and general working capital.

Neil Ritson, Chief Executive Officer of LGO, commented:

"We are delighted with the support we have received from shareholders and investors in this fundraising, which will allow us to continue building momentum in our operations in Trinidad. We are also pleased to have structured the Fundraising in such a way as to give our retail shareholders the opportunity to participate through the PrimaryBid platform, which is fully underwritten."

Details of the Offer

The Company values its private investor base and is pleased to provide private and other investors the opportunity to participate in the Fundraising by applying for up to 13,636,364 New Ordinary Shares in the Offer exclusively through the PrimaryBid.com platform. 

The Offer, which has been fully underwritten by a financial institution and arranged by PrimaryBid, will be open from 5.00p.m. on 31 March 2017 to 5 p.m. on 2 April 2017. PrimaryBid Limited is acting as sole arranger for the Offer. Subscriptions under the Offer will be considered by the Company on a "first come, first served" basis subject to conditions. PrimaryBid will not charge commission for this service.

For further information on the procedure for applications under the Offer, visit www.PrimaryBid.com or call PrimaryBid on +44 (0)20 7491 6519. 

The Fundraising is expected to be completed and the results of it announced on 3 April 2017.

The Company's Enlarged Share Capital

The New Ordinary Shares represent, in aggregate, 21.1 per cent. of the Company's share capital as enlarged by the Placing Shares (the "Enlarged Share Capital").

Following completion of the Fundraising, the Company's Enlarged Share Capital will comprise 539,197,502 Ordinary Shares. This figure may be used by Shareholders as the denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Enquiries:

Beaumont Cornish Limited is acting solely as the Company's Nominated Adviser for the purposes of the AIM Rules and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the matters referred to in this announcement and is not acting in respect of the Placing or the Offer nor providing any advice in relation thereto.

Further Details on the Offer

The Company today announces a Fundraising of £2.5 million (before expenses) through the issue and allotment by the Company of an aggregate of approximately 113,636,374 new ordinary shares of 0.05 pence each in the Company ("New Ordinary Shares") at a price of 2.2 pence per New Ordinary Share ("Issue Price").

The Company highly values its private investor base which has supported the Company alongside institutional investors over several years. Given the longstanding support of private shareholders, the Company believes that it is appropriate to provide private and other interested investors the opportunity to participate in the Fundraising. The Company is therefore making the Offer through PrimaryBid.com.

Private and other investors may participate in the Offer of New Ordinary Shares on a on a first come, first served basis, exclusively through PrimaryBid.com.

Details of the Offer

The Company is raising a total of £300,000, before expenses under the Offer. This sum has been fully underwritten by PrimaryBid. 13,636,364 New Ordinary Sharesare available pursuant to the Offer at the Issue Price, with a minimum subscription of £1,000 per investor, payable in full on acceptance.

The Offer is offered under the exemptions against the need for a prospectus allowed under the Prospectus Rules. As such, there is no need for publication of a prospectus pursuant to the Prospectus Rules, or for approval of the same by the Financial Conduct Authority in its capacity as the UK Listing Authority.

The Offer is open to existing shareholders and other investors subscribing via PrimaryBid.com. This allocation will be filled on a "first come first served" basis.

For further details of the Offer and the Risk Factors attaching thereto please refer to the PrimaryBid.com website at www.PrimaryBid.com.

The terms and conditions on which the Offer is made, including the procedure for application and payment for New Ordinary Shares, is available to all persons who register with PrimaryBid.com. The Offer is made on a first come, first served basis and scale back of subscriptions (where necessary) will be made at the discretion of PrimaryBid in consultation with the Company.

The New Ordinary Shares will be issued free of all liens, charges and encumbrances and will, when issued and fully paid, rank pari passu in all respects with the Company's existing Ordinary Shares.

Application will be made to the London Stock Exchange plc for the admission of the New Ordinary Shares to trading on AIM ("Admission"). It is expected that Admission will occur and that dealings will commence at 8.00 a.m. on 6 April 2017 - at which time it is also expected that the New Ordinary Shares will be enabled for settlement in CREST.

The Fundraising is not being made into any Restricted Jurisdiction or any other jurisdiction where it would be unlawful to do so.

Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice.

It should be noted that a subscription for New Ordinary Shares and investment in the Company carries a number of risks. Investors should consider the risk factors set out on PrimaryBid.com before making a decision to subscribe for New Ordinary Shares. Investors should take independent advice from a person experienced in advising on investment in securities such as the New Ordinary Shares if they are in any doubt. 

Expected Timetable of Principal Events

Glossary:

Notes to Editors

LGO Energy plc ("LGO") is an onshore Trinidad focused production, development and exploration company.

LGO has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base LGO has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases.

Trinidad has an established oil economy with infrastructure, skills and people. Trinidad has produced over 3 billion barrels of oil to date onshore over the last 100 years and the geology is low risk and highly prospective. Major oil companies operating in country include BP, Shell, BHP Billiton and Perenco. Despite the historical financial constraints, LGO has maintained its license to operate with strong relationships with the State Oil Company, communities, supply chain and Government.