Goudron Drilling and Production Update, Trinidad

For Immediate Release

24 November 2014

LGO ENERGY PLC

("LGO" or the "Company")

Goudron Drilling and Production Update, Trinidad

LGO is today pleased to announce that well GY-667, the fourth well of the current 30 well development programme, has been successfully recompleted in the upper C-sand reservoir. The well is currently flowing under its own pressure at a stabilized rate of 350 barrels of oil per day ("bopd") of 42 degree API oil, without water or sand. An interval of 186 feet of net pay was perforated using tubing conveyed guns and a calculated initial open-hole flow rate of 1,030 bopd was observed. This rate represents the best well drilled and completed to date from the current development programme.

The upper C-sand (formally termed the Gros Morne) in GY-667 contains a individual sandstone pay unit approximately 130 feet thick which was considered to offer the best production potential in the well.

After flowing the well for approximately 24 hours at rates up to 580 bopd through a 10/32-inch choke at a well head flowing pressure of over 600 psi, the choke size was reduced to 8/32-inch with the well now flowing at a steady rate of 350 bopd of clean dry oil at a well head flowing pressure of 540 psi.

With only 17 hours of flow testing on the recompleted GY-667 and with two wells still not fully optimized (GY-666 and GY-668), the combined production of the wells GY-665 to 668 (Pad-2) has increased to 580 bopd based on the last day for which data is available. All new wells continue on restricted flow rates to manage long term reservoir potential. The total Trinidad production has now exceeded 1,000 barrels of oil for the first time with further significant increases expected at year end with further well optimization work on Pad-2 and the completions of wells GY-669 to 671 on Pad-3.

Well GY-671, the eight well of the current development program, is currently drilling ahead in 12 1/4-inch hole at 726 feet in the Goudron Sandstone having set 13 3/8-inch casing at 293 feet. That well, and wells GY-669 and GY-670, on Pad-3, are expected to be completed as C-sand producers during December.

In addition, LGO is in the process of a making an application for a new 5,000 barrel sales tank at Goudron, to further increase sales capacity in line with ongoing well results and the planned installation of a custody transfer meter in the first quarter of 2015. Existing sales capacity, including the recent 2,000 barrel tank, is sufficient for all anticipated production until third quarter 2015.

Neil Ritson, LGO's Chief Executive, commented:

"Our decision to recomplete the 667 well at the more extensive upper C-sand level has shown very positive results with our Trinidad production now over the 1,000 bopd target we had set for end 2014. A number of wells can still be further optimized and three new wells are expected to be put on production before year end."

"Oil production rates from the Goudron wells are not at their maximum potential in order to preserve the oil bearing formations from being over produced. If oil is extracted too rapidly this can lead to potential formation damage and reduced longer term production. The Goudron Field has never had wells that have produced at these levels and we are mindful to protecting the long term production potential of the field."

A summary of the drilling program results to date is given in the Appendix below.

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

Appendix:

All depths are quoted as measured depth in feet below Kelly bushing

* Currently being reassessed

** After recompletion in the Gros Morne Sandstone

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

MD: Measured Depth

TD: Total Depth

TVDss: True Vertical Depth sub sea