Half-year Report

For Immediate Release 28 September 2016

LGO Energy PLC

("LGO" or the "Company")

Unaudited Interim Results for 6 month period ending 30 June 2016

Chief Executive's Review

In the first half of 2016 LGO has remained focussed on its operations in Trinidad and Spain. The Company has also been able to address the financial pressures that resulted from the loan default with BNP Paribas ("BNPP") which followed the sharp fall in oil prices in late 2015. The Company has improved its balance sheet through the reduction of costs, renegotiation of the terms of its bank loan and through making payments to major creditors by way of LGO shares and equity placements. LGO hopes that with renewed financial stability and higher oil prices drilling operations can recommence at the Goudron Field during the second half of the year targeting the underexploited Mayaro Sandstone interval. Preparatory work for the enhanced oil recovery ("EOR") pilot scheme is now also well advanced and it is hoped that that project can be submitted for regulatory approval by year end 2016.

Highlights

For the 6 month Period ending 30 June 2016

OPERATIONAL

· Group oil sales in the period were 84,470 barrels net to LGO (1H2015: 208,209 barrels)

· Spanish oil production has been maintained at an average of 132 barrels of oil per day ("bopd") (1H2015: 83 bopd)

· Four well recompletions; GY-671, GY-50, GY-673 and GY-277, have been successfully carried out at Goudron supporting 1H2016 production which averaged 418 bopd (1H2015: 1,191 bopd)

· A new updated resource assessment issued in July 2016 for the Goudron Field has increased reserves in all categories, proven, probable and possible, and has increased oil in place to 975 million barrels ("mmbbls")

· Lower royalty rates have been negotiated to support the Goudron production at oil prices below US$50/bbl, reducing the royalty rate on the majority of barrels produced to below 10%, a reduction of 40% effective from 1st February 2016.

· Plans for the drilling of the first ten Mayaro Sandstone infill wells now await final approval by the Trinidad authorities

· An initial pilot EOR scheme has been prepared and is expected to be submitted for regulatory approval before the end of 2016

CORPORATE

· In the 6 months ending the 30 June, the Company raised a gross amount of £5,576,284 through the issue of 2,595,122,080 shares at an average price of 0.215p. Of this total, 425,912,746 shares were issued to suppliers for settlement of creditor balances.

· After the reporting date, on the 18 August 2016, the Company issued 727,877,588 shares at 0.146p to Well Services Petroleum Company Limited for settlement of creditor balances.

· On the 22 September, the Company raised £795,000 through a placement of 795 million shares at a price of 0.10p for working capital purposes.

· At the end of Q3, the debt outstanding to BNPP was reduced to US$3m.

FINANCIAL

· Revenue for period of £1,921,000 (1H 2015 £6,610,000), an decrease of 71%

· Gross profit for period was a loss of £130,000 (1H 2015 a profit of £2,062,000)

· Pre-tax group loss for period of £1,925,000 (1H 2015 loss of £2,525,000) a 24% improvement.

NOTES

All figures are net to LGO unless otherwise stated.

Trinidad & Tobago

Strategically the Company remains focussed on Trinidad, which represents the majority of near-term activity and significant long-term growth potential, both within existing assets and in additional assets acquired through third-party arrangements or directly from the Trinidad and Tobago government. The Company holds interests in three producing fields; Goudron, Icacos and Bonasse, and in a number of private petroleum leases where production has yet to be established.

Goudron

LGO acquired the rights to the Goudron Field, by way of an Incremental Production Service Contract ("IPSC"), through its wholly owned subsidiary, Goudron E&P Limited ("GEPL"), in October 2012. The Goudron Field lies in the Eastern Fields Area in south eastern onshore Trinidad. Under the terms of the IPSC the Company acts as a service contractor to the Petroleum Company of Trinidad & Tobago ("Petrotrin") who reimburse LGO on the basis of the oil sales and oil price.

The Goudron Field contains two separate reservoir packages; the shallow Mayaro (formally referred to as Goudron) Sandstones and the deeper Grose Morne and Cruse equivalent C-sands. During drilling in 2014 and 2015 a deeper, pre-Cruse, interval of turbidite sands was penetrated and evaluated and this has added an additional, previously unexplored, deep resource for future exploitation.

The Company's plans for the development of the Goudron Field included four distinct phases:

Phase 1: reactivation of existing wells and the repair and replacement of infrastructure

Phase 2: drilling of the deep reservoir (C-sand) to further raise production and establish the basis for an EOR (water flood) project

Phase 3: infill drilling of the shallow reservoir (Goudron or Mayaro Sandstone) and the simultaneous carrying out of a pilot waterflood project in the C-sands

Phase 4: a full-field EOR project depending on results of the pilot scheme

Phases 1 and 2 have been completed and work on Phase 3 is waiting to commence.

During Phase 1 GEPL established a permanent camp, repaired and expanded the oil tank batteries, and repaired and extended the electrical grid and associated roads and bridges. In addition the Company placed on production about 70 of the pre-existing wells dating back to the 1920's. Production was raised from 30 to over 300 bopd, taking LGO Group production over 500 bopd for the first time.

Phase 2 started with the drilling of GY-664 in May 2014 and continued through to October 2015 when GY-678 was drilled and experienced technical problems. A total of 15 new deviated C-sand wells were drilled from a series of newly constructed drilling pads establishing GEPL as one of the most active operators on the island. The average cost of a deviated C-sand well was US$1.5 million. During the drilling of the 2014 and 2015 program data critical to the anticipated EOR project was collected. Production from the field peaked in early 2015 at just over 2,000 bopd.

An infill program of up to 70 Mayaro Sandstone wells has been designed and plans are in place for the first 10 locations. The Company already holds existing regulatory approval for 45 further wells. The average Mayaro Sandstone well will be drilled to a depth between 1,000 and 1,750 feet at an estimated cost of less than US$500,000 per well. This program will be executed using a small footprint heavy workover rig adapted by means of leased equipment to drill simple vertical wells close to the existing infrastructure without the need for extensive pad construction.

In parallel with the Mayaro Sandstone infill drilling program, and as part of Phase 3 of the development, a water injection pilot project has been designed using existing C-sand wells (two injectors and six producers). Permitting of the Pilot EOR is expected to be complete in 2017 at which time, subject to funding, the project will commence. The results of the Phase 3 EOR Pilot will determine the detailed form of the Phase 4 development.

In July, following the end of the reporting period, LGO issued a new updated resource assessment for the Goudron Field. The previous work by LR Senergy in 2015 was integrated with the ongoing studies by LGO and the data from the seven new wells acquired in 2015. The analysis was independently audited by Deloitte's Resource Evaluation & Advisory team in Alberta, Canada ("Deloitte"). As announced on 18 July, volumes in all reserves categories, proven, probable and possible, have increased, as well as the estimated oil in place within the field which has risen by over 20 percent. Estimated oil initially in place ("STOIIP") within the field has increased since the 2015 independent review and is now reported to be up to 975 mmbbls. The majority of the 21% increase relates to a thickening of the C-sand and pre-Cruse reservoir unit which is observed in logs of wells drilled during the 2015 campaign, notably well GY-678. The increased STOIIP is especially important in the context of a waterflood enhanced oil recovery ("EOR") project at Goudron which is currently at a planning stage. The present Deloitte report includes a gross 3C estimate of 63.40 mmbbls, which is very close to the 2012 estimate and again confirms the significant potential of the planned EOR phase of the field development.

Proved (1P) gross oil reserves in the Mayaro Sandstone and C-sand reservoirs has increased by 3% to 1.58 mmbbls, which when adjusted for the oil produced in the period (240,000 barrels), represents a 22% increase in proven reserves when compared to the June 2015 resource report. The gross proven and probable reserves (2P) have increased by 4% to 11.79 mmbbls. Proved, probable and possible reserves (3P) have increased by 9% to 25.60 mmbbls.

Table 1: Goudron Reserves and Contingent Resources (mmbbls)

Deloitte CPR, April 2016

The Company was severely constrained as to the deployment of capital in the field following GY-678 and the oil price collapse in late 2015, and until April 2016 production levels dropped across all well types, old and new. The Company has more recently been able to invest in a number of low cost recompletions, and an active well maintenance campaign as oil prices rose and stabilized in the range of US$40 to US$50/barrel. Furthermore, the Company had also negotiated a significant reduction in the overriding royalty by Petrotrin at lower oil prices for production above 150 bopd, further improving the margin to support operations in the Goudron Field.

A number of wells were selected for additional perforating. The first five, GY-671, GY-50, GY-673, GY-277 and GY-668, have now been worked over and placed on pumped production. Additional investment will enable further low cost production uplift from legacy and recent wells, and the results of that program will be announced on an ongoing basis through the remainder of 2016.

Drilling of the first of the Mayaro Sandstone infill targets, as part of the originally planned Phase 3 development, is hoped to commence before year end.

South West Peninsula

Through its local subsidiary, Leni Trinidad Limited ("LTL"), LGO holds a 50% interest in the producing Icacos Oil Field in the South West Peninsula ("SWP") where production has been maintained at roughly 35 bopd gross. LTL also holds a 25% shareholding in Beach Oil Field Limited ("BOLT") acquired in October 2015. BOLT operates the Bonasse Field in the South West Peninsula where production remains low pending further work. LTL holds an exclusivity agreement with BOLT on acquiring all BOLT's deep rights in the SWP; that exclusivity has been extended by mutual agreement until 31 March 2017 pending award by the Trinidad and Tobago Ministry of Energy and Energy Industries ("MOEEI") of a renewal of the relevant private petroleum licence ("PPL").

Operations have been restricted to routine well maintenance at the Icacos Field in 2016 in order to maintain production at current levels. An application to the MOEEI for a new PPL has been made for the Icacos Field and is a pre-requisite for further development work to commence. An extension of the PPL covering the Bonasse leases has also been applied for with the MOEEI prior to commencing additional work, including drilling additional wells, to raise production levels.

LGO also holds, through LTL, a number of 100% owned private petroleum leases totalling approximately 1,750 acres, and the Company is in the process of obtaining a PPL from the MOEEI in order to finalise ongoing field survey activities with a view to drilling exploration wells at some point in the future.

A number of significant prospects for oil and gas have been identified in the South West Peninsula acreage using a combination of data acquired from BOLT and integrated with a proprietary soil geochemistry survey as well as the LTL sponsored Full Tensor Gravity survey acquired in 2015. Future drilling of the various shallow and deep prospects now depends on completion of the licensing process currently with the MEEI for consideration.

Spain

LGO holds 100% ownership through its wholly owned subsidiary, Compañia Petrolifera de Sedano ("CPS"), in the La Lora Production Concession ("La Lora") which contains the producing Ayoluengo Oilfield in northern Spain. An application for the production of oil from the nearby Hontomin discovery within the Huermeces permit was made some time ago and is pending award. The award of an economically viable production concession at the Hontomin Field is dependent on the Ayoluengo oil field facilities remaining in place.

The current 50-year La Lora concession expires at the end of January 2017 after which, so long as the Ayoluengo Field is still producing and a number of other conditions are met, the concession can be renewed for one, or potentially two, further 10-year periods. In August 2015 a full application for the renewal of La Lora was filed with the relevant authorities in Spain and the management remain confident that the concession will be renewed. That application is currently awaiting final review by the Spanish Council of State, however, due to the lack of a government in Spain throughout 2016 and with no sign of change in the short term, it is possible that the decision may not be finalised before January. In the event that the application is not processed by January 2017 LGO is preparing to provide for transition arrangements for the field operations to continue until such time as the application can be duly considered by the relevant government bodies.

Initial post-renewal work plans include the side-tracking of a number of existing wells into areas of the reservoir believed to contain unswept oil based on extensive studies of the well and 3D seismic data. The combination of new well bores into areas of unswept oil is anticipated to provide significant production uplift.

The Company currently maintains a regular well intervention programme using a combination of hot oil, xylene and acid, which continues to provide improvements in production of these mature, active wells. These interventions, using the Company owned Cardwell work-over rig, have continued throughout 2016 to optimise production whilst limiting operating costs.

Oil sales in 2015 were made exclusively to Saint-Gobain Vicasa SA ("Saint-Gobain") under a contract renewed in 2012 and again in September 2015. This contract was terminated by Saint-Gobain in late 2015 due to a change in ownership of the main recipient factory. Notwithstanding the contract termination oil has continued to be purchased by the factory and arrangements are in place to continue with this arrangement on a month by month basis.

During 2016 with oil prices at record lows and restricted off-take from Saint-Gobain, CPS has built up additional oil in storage and it has recently started to market a bulk cargo of up to approximately 10,000 barrels of oil. Storage capacity at Ayoluengo is currently limited to approximately 16,000 barrels, but can be expanded should market conditions favour the continuing retention of high levels of stock.

In 2015 CPS also renewed its long-term contractual arrangements to supply the BP España Castellon refinery under certain conditions that may be met once new investments have been made following the renewal of the La Lora concession.

Due to a lack of access in some areas covered by national parks and a reduced interest in exploration, CPS is in the process of relinquishing the exploration permits held in Northern Spain and is seeking the return of performance guarantees associated with these permits from the Spanish authorities. It is anticipated that process will complete in 2017.

Outlook

The Company continues to focus on the long-term value of the significant potential in its portfolio, most notably at Goudron, Ayoluengo and in the South West Peninsula, whilst continuing to maintain short-term capital discipline. Operations at the Goudron Field continue, and despite the reduced new well drilling activity levels, the Company has accelerated routine maintenance operations and completed four low cost recompletions. Plans are in place to commence the drilling of a number of shallow Mayaro Sandstone infill wells when capital permits.

Whilst the debt remains at call and on demand, it is now reduced to US$3 million and LGO is considering opportunities to refinance the BNPP liability with a view to enabling greater amounts of capital to be applied across the range of production enhancement opportunities at the Goudron Field.

Safe and environmentally sound onshore production operations where there are proven reserves will remain central to the Company's long-term growth proposition.

Neil Ritson

Chief Executive Officer

27 September 2016

Enquiries:

GLOSSARY & NOTES

The estimates provided in this statement are based on the Petroleum Resources Management System ("PRMS") published by the Society of Petroleum Engineers ("SPE") and are reported consistent with the SPE's 2011 guidelines. All definitions used in the announcement have the meaning given to them in the PRMS.

Qualified Person's statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Executive Director for LGO Energy plc. Mr Ritson is a member of the Society of Petroleum Engineers, a Fellow of the Geological Society and an Active Member of the American Association of Petroleum Geologists. Mr Ritson has over 38 years of relevant experience in the oil industry

FINANCIAL STATEMENTS

GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE INTERIM PERIOD ENDED 30 JUNE 2016

* During the six month period ended 30 June 2016, cost of sales included the depreciation of specific oil and gas assets of £680,000 (year ended 31 December 2015: £3,474,000).

** During the six month period ended 30 June 2016, costs in relation to the abandoned well that were expensed during the year ended 31 December 2015 were adjusted, as a result of a negotiated settlement agreed with a creditor.

*** During the six month period ended 30 June 2015, finance charges included an unrealised fair value loss of £730,000 in relation to the BNPP loan facility.

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2016

GROUP STATEMENT OF CASH FLOWFOR THE INTERIM PERIOD ENDED 30 JUNE 2016

GROUP STATEMENT OF CHANGES IN EQUITYFOR THE INTERIM PERIOD ENDED 30 JUNE 2016

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2016

1. Basis of preparation

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 30 June 2016 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2015. The figures for the period ended 31 December 2015 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit opinion.

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 27 September 2016.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of LGO Energy Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling.

2. Segmental analysis

2. Segmental analysis (continued)

2. Segmental analysis (continued)

3. Loss per share

The calculation of loss per share is based on the loss after taxation divided by the weighted average number of share in issue during the period.

As the inclusion of the potential issuable ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive and as such, a diluted earnings per share is not included.

4. Intangible evaluation assets

5. Property, plant and equipment

6. Called up share capital

During the period, 2,595.1 million shares were issued (year ended 31 December 2015: 536.2 million).

Total share options in issue

During the period, no options were issued (year ended 31 December 2015: nil). No options were exercised (year ended 31 December 2015: nil), lapsed (year ended 31 December 2015: nil) or cancelled (year ended 31 December 2015: nil).

Total warrants in issue

During the period, no warrants were issued (year ended 31 December 2015: 7.6 million). No warrants were exercised (year ended 31 December 2015: nil), lapsed (year ended 31 December 2015: nil) or cancelled (year ended 31 December 2015: nil).

7. Events after the reporting date

On 18th August 2016, the Company announced the issue of 727,877,588 new ordinary shares of 0.05p each at a price of 0.1463p to Well Services Petroleum Company Limited ("Well Services"), a creditor of Goudron E & P Ltd, a subsidiary of the Company, as consideration for outstanding fees for services provided of US$1,379,331.

On 22nd September 2016, the Company raised £795,000 before expenses through a placement of 795,000,000 new ordinary shares of 0.05p each at a price of 0.10p.

8. The financial information set out above does not constitute the Group's statutory accounts for the period ended 31 December 2015, but is derived from those accounts.

9. A copy of this interim statement is available on the Company's website: www.lgo-energy.com.