Report and Accounts and Notice of AGM

For immediate release 2 June 2015

LGO Energy plc

("LGO" or "the Company")

ANNUAL REPORT AND ACCOUNTS 2014

NOTICE OF ANNUAL GENERAL MEETING ("AGM")

LGO is pleased to announce that the Company's audited Annual Report and Accounts for the year ended 31 December 2014 is being posted to shareholders and will be available from the Company's website, www.lgo-energy.com and extracts are set out below.

The AGM will take place on 7 July 2015 at 10.30 am, and will be held at the offices of the Company's solicitors, Kerman and Co LLP whose address is 200 Strand, London WC2R 1DJ.

Highlights

For 12 month Period ending 31 December 2014

OPERATIONAL

· Group oil sales of 203,712 barrels net to LGO, (2013: 111,774 boe), an increase year on year of over 80%. This is the second consecutive year oil sales have increased substantially and we aim to maintain this trend through 2015

· Goudron 2014 production rose to 2,089 bopd in December 2014, with Q4 2014 production averaging 1,031 bopd (Q1 2015: 1,550 bopd)

· A total of eight new wells were drilled at the Goudron Field of which seven were hooked up and producing by year end 2014

· A high standard of HSE performance was maintained during a period of significantly increased activity

CORPORATE

· Company used its US$15 million short-term debt facility with Yorkville Global Master SPV to provide funding for the development of Goudron (fully paid off and replaced with BNP Paribas long term debt facility in Q1 2015)

· LGO raised £11.4 million in new share equity through the issue of 451.6 million ordinary shares for working capital and to support development of its portfolio in Trinidad

· The Board was strengthened by the appointment of two Non-Executive Directors and the appointment of the CFO and COO to the Board

Company was renamed LGO Energy plc, from Leni Gas and Oil plc, to reflect the increasing maturity of the business

FINANCIAL

· Gross revenue of £9.21 million (2013: £5.91 million), an increase of over 50%

· Gross profit of £2.95 million (2013: £1.12 million), an increase of over 150%

· Pre-tax group loss widened to £5.11 million (2013: £2.79 million) due to one off exceptional items, short term financing costs and non-cash costs

KEY TARGETS FOR 2015

· Continue to develop proven reserves in the Goudron Field through drilling of at least seven new development wells

· Manage Goudron production for maximum long-term value, by developing the necessary infrastructure to facilitate this growth and maintaining low operating costs to provide a robust platform for economic growth even at low oil prices

· Secure a long-term low cost debt facility capable of funding Goudron's primary development through to a self-funding level

· Progress the remainder of the Trinidad portfolio to ensure medium-term growth is maintained and long-term value is created

· Maintain the Spanish assets pending the grant of the Hontomin Production Concession in the short term and extension of the La Lora Concession in 2017

· Seek further opportunities to expand the portfolio within the existing strategy, to provide longer-term diversified growth

NOTES

· All figures are net LGO unless otherwise stated

Chairman's Statement

Welcome to LGO Energy plc's annual report for the financial year ended 31 December 2014. In my first Report as Chairman, I am delighted to report on the Company's excellent performance in 2014. LGO Energy has matured as an oil developer and producer, and despite the turbulent commodity markets we are currently experiencing, the Company has performed strongly and is well placed for future growth.

At the beginning of 2014, production from our core assets in Trinidad and Spain totalled approximately 400 barrels of oil per day (bopd), and though we had intervened in or worked over and reactivated more than 80 wells in our two main fields, the Company had never drilled a new well as operator. By the end of the year we had achieved production levels in excess of 2,000 bopd, safely and successfully drilling eight development wells in the Goudron Field in Trinidad. These two achievements demonstrate the growing technical capabilities of the LGO team allowing the Company to deliver on its strategy. My confidence in our team and assets has subsequently been independently recognised through the completion of a US$25 million debt facility agreed with BNP Paribas in early 2015. We have drawn US$12 million from the facility for the seven development well campaign now underway in Goudron, and depending on the results of that programme, we expect to be well placed to move to a continuous, self-funded programme thereafter.

As a result of increased production in 2014, our gross revenues from operations rose by over 50 per cent and gross profits are up over 150 per cent year on year. The marked decline in oil prices in the fourth quarter has obviously impacted oil sales receipts, however, LGO Energy is fundamentally a low cost operator. In addition, our main operations in Trinidad function under a progressive tax and royalty regime such that our activities remain profitable and are insulated from the worst impacts of the volatile commodity market.

The Company's Health, Safety and Environmental performance has generally been good and we remain committed to achieving zero impacts in all our operations. Incidents were reported and fully investigated and the lessons learnt were immediately implemented to improve the business. The Energy Chamber in Trinidad has recently recommended our operations at Goudron for Safe to Work (STOW) certification.

Drilling at Goudron started in April last year and was designed to test the potential of the core area of the field at the underexploited C-sand level. By December eight wells had been drilled to C-sand level and by year end, seven had been placed on production, with the last well being completed as an oil producer in January 2015. The seventh well, GY-670, had an initial start-up flowrate constrained through a choke of over 1,000 bopd, and was independently reported to be Trinidad's best performing new onshore well for over 20 years.

The drilling programme also allowed us to further develop our knowledge and skills, by applying innovative drilling and completion techniques to optimise drilling performance. I am pleased to report that we delivered significant drilling performance improvement throughout the campaign. The combination of attention to detail, casing and drilling mud design, modern electric logs and advanced perforating techniques allowed LGO Energy to surpass all previous drilling and production performance achieved from Goudron, and demonstrated the underlying potential of the field. This proven approach will be continued in 2015, with drilling having recommenced in April, again targeting the C-sand.

During the year we also worked on several opportunities to expand our portfolio in Trinidad, looking at a number of potential acquisitions, although none of these led to transactions which were concluded in 2014. We remain convinced that Trinidad, with its long history of oil and gas operations, is rich in field redevelopment opportunities. The expertise that we have developed and demonstrated differentiates LGO Energy from our competitors. As oil price forecasts stabilise, we anticipate further discussions with the various sellers. Nevertheless, our focus will remain on capitalising on the excellent opportunities that have now been identified across the Goudron Field, and given our success to date, we believe that progress on building a larger footprint in Trinidad is not essential in the short-term to achieve our targeted growth.

In Spain, we have continued to manage operating costs and optimise production in the Ayoluengo Field, as we prepare our submission for the planned extension of the La Lora concession. We hope to obtain a minimum of a 10-year extension to La Lora concession, and once that has been achieved, we will be able to invest for the future. We know there is additional oil to recover at Ayoluengo, from developed horizons using modern drilling and completions technologies, and potentially from new target horizons. When we are confident that the investment can be economically recovered over the life of the concession, we will increase our focus on redevelopment, including future drilling. In the interim, safe operations have been maintained and a programme of work-overs and well reactivations has been pursued that will allow the Company to continue to operate effectively whilst the application for an extension is considered by the Spanish authorities.

In recognition of the growing maturity and value of the Company, and in order to meet future demands, the Board of Directors was expanded in 2014 through the appointment of two new Non-Executive Directors and the appointment of both the CFO and COO to the Board. David Lenigas, the Company's founder, retired from the Board in August, and the Company's name was changed from Leni Gas and Oil plc to LGO Energy plc at that time. The six members of the new Board bring a wealth of oil and gas expertise with which to support the continued growth of the Company as it seeks to implement its brown-field development strategy in Trinidad and Spain, placing it in a strong position to assess medium and longer term growth options.

As Chairman I would personally like to thank our management team in London, Spain and Trinidad, for their hard work and dedication delivered again in 2014, and since the Company was founded. Thanks also go to my fellow directors, past and present, and to our shareholders and advisors for their support in the past year, a year that was in my view transformational.

Steve Horton

Non-Executive Chairman

1 June 2015

Enquiries:

Chief Executive's Review

LGO Energy plc ("LGO") continues its strategyof identifying, acquiring and developing assets within the oil and gas sector that provide the opportunity to unlock significant value through our combination of financial, commercial, and technical expertise.

The Company operates a low risk portfolio of production assets in Trinidad and Spain, with significant production and reserves upside, using similar operating approaches and proven production enhancement techniques. LGO has specifically targeted onshore assets with low cost near term production upside and follow-on exploitation potential.

During 2014, as in 2013, the operational management of LGO concentrated primarily on advancing the field development operations in Trinidad. This involved drilling the first operated well in LGO's history, followed by seven additional successful wells, revolutionising the Company's capability and production potential. Organisational capability was built throughout 2014 and continues in 2015, with the completion of a new organisational structure and an enhanced technical team based in the Company's head offices in London.

To allow the Company to focus on our flagship Goudron Field development, activities in Spain were again managed in a care and maintenance mode. The emphasis in the Ayoluengo Field was on production efficiency and safety, with parallel activity in Madrid and London focussed on the technical, legal and commercial analysis required for the La Lora Concession renewal application that will be lodged with the Spanish authorities in 2015.

Commercial and new business development activities in Trinidad were focussed on building a sustainable platform for future production growth at Goudron and on other assets. Whilst the severe dip in oil prices in the second half of the year negatively affected our portfolio building activities, we intend to invigorate this initiative in 2015. By maintaining low operating overheads and managing the assets for value, LGO has a robust economic platform for growth even at reduced oil prices.

The health, safety and environmental ("HSE") performance was generally good, although there were two minor lost time accidents on the Goudron Field during the year. The significant increase in activity and man-hours worked was matched with an increase in HSE professionals within the team and every effort is being taken to eliminate all lost time incidents. GEPL has instigated the Trinidad Energy Chambers' STOW system and is due to be awarded its initial certification in 2015. During the year there were no reportable environmental incidents and further remediation work at Goudron and Ayoluengo was continued to resolve pre-existing environmental issues inherited from previous operators. LGO employs the strictest environmental standards within its operations reflecting our commitment to minimising the impacts in the fragile environments where we operate.

Trinidad & Tobago

The Company, through various wholly owned subsidiaries, holds interests in two producing fields, Goudron and Icacos, and in a number of private petroleum leases where production has yet to be established. LGO has also negotiated various agreements with third parties to farm-in or otherwise acquire interests in additional properties in Trinidad. Trinidad is the strategic focus of the Company's activities and represents the bulk of near-term growth and significant long-term growth potential both within existing assets and in additional assets acquired through third-party arrangements or directly from the State.

Goudron

LGO acquired the rights to the Goudron Field, the 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 realised oil price.

On taking over the full-time operation of the contract, GEPL carried out a series of well work-overs and reactivations which continued in 2013 and into 2014. Since April 2013 two work-over rigs have been deployed at the field carrying out well reactivations and optimisations. In April 2014 drilling operations on new development wells, specifically targeting the under exploited C-sand formation, were commenced, and by the end of the year eight new wells had been successfully drilled. A total of 28,754 feet of new drilling was carried out and all eight wells were completed as C-sand production wells. The overlying Goudron Sandstone formation was found to be oil bearing in all eight wells and the wells may be recompleted for production at that level at a later date.

The Goudron field is located in an area of primary tropical forest which receives higher than average rainfall. As in previous years, GEPL has maintained and expanded the basic infrastructure of the field, repairing roads and bridges, extending the electrical supply, and making other infrastructure improvements necessary to meet or exceed modern operational standards. To reduce outages due to breaks in the power transmission system, GEPL has installed additional generators on critical systems, such as export pumps, and continues to improve the safety and environmental protection though improvements in water treatment and fire suppression.

Oil produced at Goudron is stored in sales tanks before being measured and pumped into the Petrotrin owned pipeline adjacent to the field which carries the oil directly to the Pointe-au-Pierre refinery in western Trinidad. To accommodate the rising production volumes, a new 2,000 barrel sales tank was constructed and commissioned in October. Longer-term the installation of a Lease Automatic Custody Transfer ("LACT") meter is planned to handle anticipated production from the field. Petrotrin has also agreed to construct a larger export pipeline between the Goudron Sales Battery #134 and the refinery pipeline. The current 2 7/8-inch line will be twinned with a 4 1/2-inch OD line. Oil quality at Goudron is consistently high with an average export density of approximately 37 degree API.

Drilling rig selection and contract negotiations were completed in early 2014 and the first new development well, designated GY-664 was spudded on 28 April 2014 using Well Services Rig 20. This rig was used for the complete eight well programme and was demobilised at end 2014. The smaller Well Services Rig 70 will be used for the 2015 drilling campaign which commenced with well GY-672 on 14 April 2015.

GY-664 reached total depth of 4,212 feet on 13 May 2014. The well successfully intersected with the three planned reservoir intervals in the Goudron sandstones of the Mayaro Formation, the Gros Morne sandstones of the Moruga Formation and a sandstone in the Lower Cruse Formation. The Pre-Mayaro sandstones are collectively termed the C-sands by the Company. Full petrophysical log analysis was conducted and the well was completed as a Gros Morne producer over an interval of 278 feet of net oil pay. Further intervals of oil pay were identified in the Goudron sandstones totalling 192 feet and a further 87 feet in the Lower Cruse.

The initial flow rate from well GY-664, at 240 bopd, was some four-times higher than the historic average and exceeded any previous well on the field. This strongly supported the Company's belief that modern drilling and completion practices would greatly enhance the production performance of wells in the field. Modern electric logs and petrophysical analysis revealed greater amounts of net oil sand in the key reservoirs and allowed the more accurate targeting of the perforations to maximise oil production potential.

With the evident success of GY-664, Rig 20 was moved to the second drill pad where it drilled four further wells to C-sand targets. Those wells GY-665 to GY-668 were drilled between 27 May and 27 August and placed on production during September once the rig had been moved to the next drill pad. Drilling then continued with wells GY-669 to GY-671 on a third drill pad. Those wells were drilled between 5 October and 6 December. Production from GY-670 and GY-671 commenced in late 2014, and GY-669 was placed on production in January 2015. Relevant data on the drilling of these wells is provided in Table 1 below.

Table 1: Goudron 2014 Development Wells

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

During the eight well drilling campaign close attention was paid to improvements in the drilling technique and adapting the drilling programme to local conditions and equipment. Not all the improvements could be realised during the 2014 campaign and as a consequence a completely redesigned well construction plan was developed for future drilling. Various improvements in technique, including using measurement and logging while drilling, and deploying an intermediate casing string to ensure full pressure isolation of gas sands in the upper pre-Mayaro sequence were trialled in the 2014 programme and have been fully implemented in the 2015 drilling campaign. Well GY-672 was drilled between 14 April and 28 April 2015, in a significantly reduced time.

Data from the new wells, along with data from the reactivated and legacy wells, was analysed by Senergy in order to construct a comprehensive new geological ("static") model of the field. That model was completed in November and has subsequently been used in siting the planned 2015 wells and planning the further development of the field. Following an initial review of the static model and the well production histories which was carried out in early 2015, LGO concluded that a new field development plan ("FDP") was required to properly incorporate the results of the successful 2014 drilling programme, and that a new reserves estimate and Competent Persons Report ("CPR") should be deferred until a new FDP had been constructed. It is now anticipated that the CPR will be published in mid-2015.

During 2014, production from the legacy recompleted wells was maintained with base production declining slightly from a first quarter average of 267 bopd to a fourth quarter average of 232 bopd. Additional capacity is believed to exist within these wells and a programme of at least 12 recompletions, re-perforation and the addition of new perforations, is underway in 2015 to realise that potential.

Production from the newly drilled wells is achieved at the end of drilling on each pad; it is currently not possible to simultaneously drill and produce from wells on the same pad and as a consequence there is a delay between drilling and production start-up. Efforts are continuing to minimise or eliminate this delay. The first new well GY-664 came on production on 23 May and the last well drilled in 2014 was brought on production on 29 January 2015. This led to a production ramp-up from 261 bopd average in April 2014 to 1,557 bopd average in December 2014. A similar ramp-up will occur in 2015 as new wells are brought on to production though this will be tempered by the underlying decline of existing wells.

Well GY-670 was placed on production in late December and was initially flowed at a rate in excess of 1,000 bopd and represented one of the best new wells drilled onshore in Trinidad in the last three decades.

LGO has adopted a conservative reservoir management strategy with the new producing wells. The wells are produced via a restricted choke at stable constrained production rates, increasing the choke size progressively over time to maintain that stable production rate where possible. Once pressure in the well declines to zero (i.e. on an open choke) wells will be recompleted with conventional pumps to continue production. Given the very limited production history in the field using modern well construction completion techniques and reservoir management practices, it is not yet possible to accurately forecast reliable decline rates per well or to accurately estimate plateau periods. However it is clear that the wells with the greatest gas production; GY-669 and GY-670, have the highest depletion rates and the wells with the lowest gas production; GY-664 and GY-665, have the lowest depletion rates.

As part of the 2015 drilling campaign GEPL will be collecting additional data on the C-sand reservoirs, including downhole fluid samples and full hole cores, which will be deployed in additional field studies, in part to support the next phase of Goudron development. That next phase of development is strongly indicated to involve water or water-alternating-gas enhanced oil recovery ("EOR"). It is too early to predict when an EOR scheme could be initiated in the field, however, early action on this is thought to offer significant economic benefits.

Cedros Peninsula

Elsewhere in Trinidad, through its local subsidiary Leni Trinidad Limited ("LTL"), LGO holds a 50% interest in the producing Icacos oil Field in the Cedros Peninsula, operated by Territorial Services Group, a subsidiary of Touchstone Exploration. Production has been maintained at similar levels to previous years, roughly 35 bopd gross. Routine maintenance is planned as necessary for 2015 and the field, which is currently subject to an application to the Trinidad and Tobago Ministry of Energy and Energy Affairs ("MOEEA") for a new private petroleum licence ("PPL"), may be a target for additional activity following receipt of the PPL.

In the wider Cedros Peninsular, LGO holds a number of 100% owned private petroleum leases totalling about 1,750 acres and is in the process of obtaining a private petroleum licence from the MOEEA in order to carry out a number of field surveys with a view to eventually drilling exploration wells. LGO has also entered into a Letter of Intent with Beach Oilfield Limited ("BOLT") to cross-assign the interests of the two companies within the Cedros Peninsula at stratigraphic levels below 7,000 feet. LTL will be the operator of the combined leases and will hold a 100% working interest, with BOLT receiving an overriding royalty on any future production revenues. During 2014 progress was made on bringing this arrangement into effect and several deposit payments were made to BOLT in the form of LGO shares to maintain exclusivity on the prospects whilst administrative arrangements were finalised. The share payments are refundable with a long-stop date of 30 September 2015 for completion of the necessary lease and licence assignments. On completion of this transaction LTL will hold interests in over 10,900 acres of petroleum leases in the Cedros Peninsula.

During 2014 a surface soil geochemistry survey was conducted in collaboration with BOLT over the entirety of the Cedros peninsula with soil from a total of 400 sample points being collected for analysis. The results of the laboratory analyses from that survey were available early in 2015 and are undergoing detailed interpretation, and integration with the seismic and well data. A significant number of surface anomalies have been seen, some associated with known oil accumulations and others that may indicate the presence of prospects for undiscovered oil and gas. Initial findings from this work will be internally published in May 2015 with further results being available later in the year.

In 2013, LGO tendered for a Full Tensor Gravity survey to be flown over the entirety of southern Trinidad to assist in its ongoing operations in Cedros and Goudron, and to look for additional investment opportunities. A contract was signed with ARKeX Limited ("ARKeX") to fly the survey in late 2014. After discussions with the MOEEA it was determined that a multi-client survey sponsored by the MOEEA would facilitate the survey being acquired and consequently LTL became a licensee of the data along with Petrotrin. LGO, through its wholly owned subsidy Columbus Energy Services Limited ("CESL"), provided both logistic and financial assistance to ARKeX in order that the survey could be acquired prior to receiving additional commitments from potential additional licensees. The aircraft arrived in Trinidad in early January 2015 and at the time of writing the 5,700 square kilometre survey was being processed by ARKeX at their head offices in Cambridge, UK. Once initial processing has been completed additional interpretation will be undertaken, integrating the airborne gravity and magnetic field readings with other relevant data. Initial indications of data quality and utility are good and the part-processed data has already been of assistance to GEPL in the Goudron field where there is no available seismic data.

Other Trinidad

The Company continues to pursue its strategy of increasing its footprint in Trinidad, and as a consequence has held commercial discussions with a number of parties with a view to acquiring, through acquisition or farm-in, additional field development opportunities.

In its pursuit of additional opportunities to develop under-exploited oil and gas reserves, LGO made a commercial offer to the owners of the Trinity-Innis IPSC contract area with a view to acquiring the IPSC. After protracted due diligence and a marked fall in the oil price LGO revised its offer and at the time of writing, commercial negotiations have not been concluded. LGO also reached agreement to acquire the Tabaquite Licence, however, at the time of writing this transaction has also not been completed.

Various discussions and reviews of assets have been conducted that lead LGO to remain confident that there are numerous high value opportunities outside our core areas of Goudron and the Cedros Peninsula, and the Company will continue to evaluate the most appropriate opportunities and means of entry.

LGO, through its local service company CESL, acquired a work-over rig in early 2015 to ensure that sufficient capacity is available for any field activities at Goudron or elsewhere. The rig can also be deployed in third-party work and represents an investment in capacity and flexibility for the future.

During the reporting period Trinidad oil sales totalled 172,220 barrels (2013: 77,121 barrels). Production from the Icacos field was essentially unchanged year on year, with the increase in oil production and sales being derived exclusively from the Goudron Field.

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 Ayoluengo producing oilfield), and three exploration permits; Basconcillos-H, Huermeces and Valderredible, in Northern Spain. An application for the production of oil from the Hontomin discovery in the Huermeces permit has been made and is pending award. The La Lora concession expires in January 2017 after which, so long as the field is still producing and certain other conditions are met, we expect that the concession can be renewed for one, or perhaps two, further 10-year periods. The management remains confident that those conditions will be met and that an extension will be granted.

Oil sales during the year were again made exclusively to Saint-Gobain Vicasa SA ("Saint-Gobain") under the contract renewed in 2012. Saint-Gobain uses the Ayoluengo crude oil as fuel oil in their factories within Northern Spain. Under the terms of the contract CPS receives a price linked to Brent with discounts to adjust for the fuel oil grade and chemistry.

A regular well intervention programme using a combination of hot oil, xylene and acid has seen good results in maintaining production despite the age and condition of many of the active wells. Action has been taken to reactivate a number of dormant wells through mechanical as well as chemical means. These interventions, using the Company owned Cardwell work-over rig, will be continued in 2015 so as to gain maximum production whilst limiting operating costs.

The most likely investment scenario for the Ayoluengo field is the drilling of a small number of side-track wells from the existing producing wells along the crest of the structure to access oil in zones that are known to be oil bearing, but from which oil is not believed to have been recovered to date. This investment remains conditional on further detailed studies and on the granting of at least a 10-year extension of La Lora from January 2017. Work started in mid-2013 to prepare the licence extension application which is expected to be lodged with the Spanish administration in mid-2015. Extensive studies, technical, legal and commercial have been undertaken, and the Company remains confident that the economic life of the field can be significantly extended in the right concession framework.

In the Huermeces licence, the Company's application for the conversion of the Exploration Licence to a Production Concession remained under consideration with the Spanish authorities. In early 2014 the Ministry of Industry indicated that it was favourably considering the Concession application and as a final step requested a geological report be submitted. That technical report, prepared by an independent consultancy in Spain for CPS, was submitted in May 2014. A further round of clarification has been held up due to difficulty in providing a legal framework for CPS to access certain relevant data acquired previously in the area of Hontomin by a Spanish State entity, and at the time of this report we are awaiting final award of the Concession.

There has been no work undertaken in the Basconcillos-H licence area where the Tozo-1 gas well is located. This project is dormant pending further studies of potential uses of the gas discovered in Tozo. An extension to the Valderredible licence is also pending approval. It has so far proved difficult to operate in a large part of the licences due to environmental restrictions within the National Park which covers much of the area. CPS's permits and concessions lie within the central portion of the Sedano trough within the Cantabrian Basin which is believed may have unconventional gas potential at depth. LGO considers that shale gas potential may represent additional long-term value and has acquired further regional studies in 2014 to assess the scale of that potential.

During the reporting period Spanish sales totalled 31,492 barrels oil (2013: 34,653 barrels) exclusively from the Ayoluengo Field.

Other

In January 2013 LGO issued proceedings against Mediterranean Oil and Gas plc (MOG) in the High Court of England and Wales alleging misrepresentation at the time of the sale of the Company's 10% interest in the Area 4 Petroleum Sharing Contract in Malta. In a Case Management Conference before Justice Clarke in May 2013, the Court refused MOG's application for security over costs in the action and ordered MOG to pay LGO's costs in defending that application. The Court also ordered disclosure of relevant documents and set a timetable to trial in March 2014. LGO and its legal team prepared for trial through 2013 and into 1st quarter 2014. The trial was held before Justice Males between the 4th and 12th March 2014. Mr. Justice Males did not uphold LGO's claim against MOG and subsequently awarded costs in the action against the claimant. After taking further independent legal advice LGO decided not to lodge an appeal in the Court of Appeal.

Conclusion

The past year was an active one, operationally and corporately, as the Company successfully drilled eight new development wells at Goudron, the first operated wells in the Company's history, and simultaneously built a stronger corporate platform for long term growth. The success of the drilling at Goudron and the production capacity that generated has also increased the confidence of the organisation to plan a larger, longer-term, development at Goudron and to put debt funding arrangements in place with a major energy lending institution, BNP Paribas. By maintaining focus on the quality of our operations and their costs we have a solid foundation for growth that is robust to the downturn in commodity prices that we have experienced in the recent past. Along with the closing of the BNP Paribas debt in early 2015 the Company has also moved to new premises and enlarged its technical team in London so as to better manage the overseas operations of the Company and provide in-house technical capability that was previously outsourced to external consultants.

In August David Lenigas, the Chairman and founder, retired from the Board and was replaced as Chairman by Steve Horton. My existing colleagues James Thadchanamoorthy and Fergus Jenkins joined the Board in executive capacities and Iain Patrick and Michael Douglas joined as Non-Executive Directors, with responsibilities respectively for the audit and remuneration committees. To further reflect the development and growing maturity of the Company, it was renamed LGO Energy plc.

LGO has faced many challenges, to grow in a market which has been contracting and where revenues have been under severe pressure due to the commodity price collapse. However, the LGO team have responded outstandingly well to these challenges and we have delivered significant, countercyclical, growth in production, revenue and gross profit. I am sure that 2015 will be yet another challenging year, however, I am confident that the management and staff of the Company will be equal to those challenges and the Company will continue to perform well in the coming years.

Neil Ritson

Chief Executive Officer

1 June 2015

Competent Person's statement:

The information contained in this document 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 35 years of relevant experience in the oil industry.

GLOSSARY & NOTES

3D = three-dimensional

AIM = London Stock Exchange Alternative Investment Market

API = American Petroleum Institute

barrel = 45 US gallons

bbls = barrels

bcf = billion cubic feet

boe = barrels of oil equivalent calculated on the basis of six thousand cubic feet of gas equals one barrel of oil

boepd = boe per day

bbls = barrels of oil

bopd = barrels of oil per day

C-sand = Goudron field reservoir sands below the pre-Mayaro unconformity

CESL = Columbus Energy Services Limited

CPR = Competent Persons Report

CPS = Compañia Petrolifera de Sedano

EOR = enhanced oil recovery

FDP = field development plan

First Tranche = an initial volume of oil provided to Petrotrin under the terms of the IPSC

GEPL = Goudron E&P Limited

HSE = health, safety and environment

IPSC = incremental production service contract

LACT = lease area custody transfer (meter)

LTL = Leni Trinidad Limited

MD = measured depth

MOEEA = Trinidad and Tobago Ministry of Energy and Energy Affairs

m = thousand

mm = million

mmbbls = million barrels of oil

mscf = thousand standard cubic feet of gas

OD = outside diameter

Petrotrin = Petroleum Company of Trinidad and Tobago

PPL = private petroleum licence

STOW = Trinidad Energy Chamber "safe to work" certification

TD = total depth

WTI = West Texas Intermediate

Finance Review

Results for the Year

2014 was a breakthrough year for the Company having successfully drilled 8 wells, increased production by more than 80% on the year and increased the Group operating cashflows by £3.32m.

The Group revenue was £9.21m (2013: £5.91m), an increase of over 50%, whilst Group gross profit increased over 150% to £2.95 million (2013: £1.12 million).

The Company had a number of exceptional cost items including those related to the close out of the MOG legal case and short term financing costs, which when combined with the non-cash costs, took the Group's operating loss after tax to £6.07 million (2013: £2.85 million) for the year ending 31 December 2014.

Once adjusted for the exceptional items, the Group operating performance excluding non-cash costs (Group EBITDA) was a profit of £0.6m, (2013: loss £1.2m), a £1.8m improvement on 2013.

Oil Price Environment

From a high of $108/bbl on the 20 June, the oil price (WTI) fell steeply, as a combination of a reduced demand from China and an increase in supply from US shale producers weighed heavily on the physical supply/demand balance, and crucially oil price sentiment. This was further compounded by the decision from OPEC in November 2014, not to cut production and thereby not support the falling price. The oil price ended the year at $53.45/bbl, a drop of over 50% from the Q2 high.

The same sentiment has seen the oil price continue to fall in early 2015, reaching a low of $45.13/bbl, before making a modest recovering, still down on 2014 prices. The Company continues to monitor oil price as well as those related markets that could impact the Company's future project and operational development plans.

Cash Flow

Cash inflow from operating activities after movements in working capital amounted to £0.50 million (2013: outflow £2.82 million). Net cash inflow from financing activities was £10.65 million (2013: £4.15 million). Net cash outflow from investing activities including the 8 drilled wells, was £10.01 million (2013: £1.19 million).

Net Cash Position

Net cash at 31 December 2014 was £1.58 million (2013: £0.34 million).

Outlook

Having drilled 8 wells in 2014, the Company was able to significantly increase full year production. With a minimum of further 7 wells scheduled for 2015, the full year production for 2015 should show another significant increase.

Oil price recovery started in Q1 2015, though the price remains volatile and significantly down on 2014. The Company is strongly placed to deal with this volatility, as it naturally benefits from price rises, whilst retaining some protection against price falls through the contractual royalty reductions at lower oil prices and through the structuring of the BNP loan facility executed in 2015.

Whilst the decline in oil price has seen a number of oil companies cut capital expenditure, LGO has continued its investment through the use of internally generated cashflows and the BNP Paribas loan facility. With the oil price now showing upward momentum, LGO is well positioned to benefit from these decisions.

James Thadchanamoorthy

Chief Financial Officer

1 June 2015

Financial Statements

GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2014

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2014

COMPANY STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2014

GROUP STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2014

COMPANY STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2014

 STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2014

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014

(*) Revenues are derived from a single customer/partner within each of these operating countries.

(**) The operating profit in the UK arose due to management fee income from its subsidiaries.

(***) Intercompany loans to the U.S. and Malta focused companies were written off with no impact to the Group.

(*) Revenues are derived from a single customer/partner within each of these operating countries.