Group Production Update

For Immediate Release

4 December 2014

LGO ENERGY PLC

("LGO" or the "Company")

Group Production

and Trinidad Drilling Update

Director Options, Revised Vesting

LGO is pleased to announce that Group production has exceeded 1,250 barrels of oil per day ("bopd"), with over 85 percent derived from its operations in Trinidad. Group production on 2 December totaled 1,272 bopd, with the five new production wells in the Goudron Field contributing over 800 bopd.

All five new Goudron wells remain on constrained flow rates to protect the reservoir and are producing oil without water. Wells GY-664, GY-665 and GY-667 are free flowing whilst wells GY-666 and GY-668 have recently been completed with downhole pumps in order to obtain further improved production rates and are still subject to further work intended to stimulate additional production.

Well GY-671, the 8th well in the 2014 drilling program, is currently drilling ahead at 2,733 feet measured depth ("MD") in 8 1/2-inch hole after setting an intermediate 9 5/8-inch casing at 2,434 feet MD. The well is now in the upper C-sand interval and is drilling in reservoir sandstones with the expected hydrocarbon indications. Wells GY-669, GY-670 and GY-671 are being drilled from the third pad ("Pad-3") and are anticipated to be completed as C-sand production wells by end year.

After drilling GY-671 it is expected to release Well Services Rig 2 and to then construct two further drilling pads (Pad-4 and Pad-5) for the 2015 drilling program which is planned to commence with Well Services Rig 70 in March.

Production in the Ayoluengo Field in northern Spain has in overall terms been rising in recent months with 157 bopd reported for 2 December. Recent clean outs on two wells have led to their return to production levels of approximately 20 bopd per well and it is expected that an additional 5 wells will be reworked progressively over the coming months. Production from Ayoluengo Field on 12 November reached a recent high of 196 bopd when well Ayo-40 was swabbed back into production after mechanical removal of scale and an acid wash.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted with the success of our drilling program in Trinidad and the resulting increase in Group production. We continue to make significant progress and anticipate reaching total depth on GY-671 within the next few days and completing Pad-3 for production by end-year.

Whilst we can't ignore the recent fall in the oil price, the impact on bulk of our production is largely offset by our contract terms. At Goudron a fall of US$10 per barrel in the oil price translates to approximately a US$2 to US$3 per barrel reduction in our long run cash margin, and as such there no material impact on our Goudron field development plans, which remain unchanged."

Director Options, Revised Vesting

LGO Energy plc advises that the non-executive Directors of the Company have voluntarily agreed to a revised performance criteria associated with their share options announced 1 December 2014.

In view of the continued strong production performance of the Group the three non-executive Directors; Steve Horton, Iain Patrick and Michael Douglas have requested that the vesting criteria for the 15 million share options they were each granted recently be raised to 1,500 barrels of oil per day ("bopd"), from the level of 1,250 bopd previously announced. The new vesting criterial will also be for 10 consecutive days of production at the new target level.

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:

bopd: barrels of oil per day

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.

MD: Measured Depth

TD: Total Depth