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LGO’s Recent Growth in Trinidad

ACIEP Meeting

15th April 2015, Madrid

Neil Ritson

Company Profile

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Trinidad

Spain

London HQ

Worldwide Staff - 55 Net Production Capacity - over 2,000 bopd 2P Reserves - over 7 mmbblsMarket Cap - US$120 million

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PLC Board of Directors

Chairman Steve HortonHolds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy industry including 27 years with BP plc where he held executive roles including worldwide Director of Drilling. He co-founded Silverstone Energy Limited in 2005.

Chief ExecutiveOfficer

Neil RitsonHas a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. before founding the Vanguard Energy Group where he was Chairman and CEO.

Chief Operating Officer

Fergus JenkinsIs a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He has over 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.

Finance Director James ThadchanamoorthyHas a degree in Chemistry and is a qualified accountant. He has 18 years’ experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions.

Non-ExecutiveDirector

Iain PatrickIs a lawyer with over 30 years’ experience in the international oil and gas industry. He joined Monument Oil and Gas plc in 1988 where he was Commercial director until its sale in 1999. Subsequently Mr. Patrick was Commercial Director of Gulf Keystone Petroleum (UK) Limited.

Non-ExecutiveDirector

Michael DouglasMr. Douglas has worked in the business consultancy sector for 40 years. He was a Managing Partner for PA Consulting and in 1993 Mr. Douglas founded the Quo Group, a consultancy specializing in behavioral change, performance and talent management, and executive coaching.

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LGO’s Trinidad Assets

Three asset areas in the prime hydrocarbon play zone:• Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls

and over 60 mmbbls of contingent resources associated with a future water flood. Active production growth from a 30 well infill development drilling programme now at well nine

• Icacos Field in the Cedros Peninsula (50%, non-operator), producing ~35 bopd from three wells. Future opportunities for infill and redevelopment

• Over 7,500 acres of largely unexplored 100% owned private oil leases in the Cedros and in rights held in partnership with Beach Oilfield Limited

• Additional opportunities under evaluation such as the Trinity-Inniss IPSC

GOUDRONIPSC

TRINITY- INNISSAQUISITION

COUNTRY OVERVIEW• A regional financial centre with a well-regulated and stable financial system• English common law based legal system and Parliamentary democracy• Well educated workforce with literacy rates of over 95%, • One of the most prosperous countries in the Caribbean• Major oil and gas production and processing centre (> 45% of GDP)

CEDROSLEASES

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Why Trinidad?

• Proved reserves of over 730 million barrels

• Annual Production: 81,000 bopd

• Sixth largest exporter of LNG in the world

• The southern part of Trinidad is geologically part of the Eastern Venezuela Basin, separated by the 7 kilometre wide Columbus Channel

• The Eastern Venezuela Basin is a very productive oil province with over 12 billion barrels of light oil reserves

• Over 3 billion barrels have been produced in Trinidad to date

• Wealth of overlooked opportunities, and a limited peer group and industry interest Eastern Venezuela

oil province

TRINIDAD

Caribbean Plate Boundary

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Trinidad’s Oil Province

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Goudron Field Overview

• Goudron is located in onshore eastern Trinidad and produces light oil (averaging at least 38 oAPI)

• Discovered in 1927 the field has a long history, but only limited production with less than 5 mmbbls produced

• 154 wells were drilled before 1981; LGO started drilling new wells in April 2014

• LGO acquired the IPSC in October 2012 and has since then:

• Restored the infrastructure• Conducted over 70 well reactivations• Carried out several recompletions• Drilled 8 new deep wells• Placed all new wells on stream• Increased field infrastructure to handle new production

• Production has already increased from 30 bopd to over 2,000 bopd and is hoped to exceed 3,000 bopd in 2015

SITE ROADS

Phase 1: Infrastructure

• Located in the remote primary rain forests of the Trinity Hills Wildlife Sanctuary

• Prior to LGO very limited work undertaken over last 30 years

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Workshops

Sales Tank Battery #34

• LGO has:• Increased sales tank capacity more than 8-fold• Refurbished previous tank facilities• Repaired bridges and roads• Installed a new communications• Extended and restored electricity• Constructed water treatment• Build a camp facility• Run new well flow lines• Built five new drill pads• Drilled & completed 8 wells• Commenced 7 more wells

Production at Gros Morne level

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Phase 2: Infill Development Drilling

• Infill locations selected to have low risk of finding oil pay based on offset wells

• Where upswept oil is predicted to be present by comparison with nearby wells

Well 188

Well 664

Well 64

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Drilling Status

Drilling to date:• Eight new deep wells drilled in 2014, total

28,754 feet drilled• Using vastly improved drilling, logging and

completion techniques• Well GY-670 had an open hole flow rate of

6,000 bopd and was initially completed on a 12/32” choke at a rate of 1,000 bopd

• Reported to be the best onshore well in Trinidad for over 20 years

Well head photo

With just 8 of the initially planned 30 development wells over 2,000 bopd of new production has been achieved

Drilling Pad-3• LGO has starting the next 7 wells and is planning for 10 further wells to follow on immediately

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Phase 3: Water Flood

• Local analogue at Beach-Marcelle Field• Wealth of local experience in Trinidad• Over 60 mmbbls of 3C resources

• Existing study for 4,000 bopd capacity • New scoping studies starting now• Collected critical data during recent drilling phase• LR Senergy are leading the technical work

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EOR Production Forecast

bopd

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 -

500

1,000

1,500

2,000

2,500

3,000

3,500

Primary Production Forecast

Base production2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

PROVISIONAL Primary and Secondary Production Forecast (P90)

Base production Water Flood

bopd

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Plans in 2015

• Built two more drilling pads

• Complete the ongoing LR Senergy primary development studies

• Prepare a new reserves report to reflect the results obtained to date

• Install a Lease Area Custody Transfer (LACT) meter and an additional 5,000 barrel sales tank

• Drill and complete at least 7 more wells

• Continue drilling wells 16 to 30 (perhaps 60+)

• Initiate FEED engineering for water flood

Change photo

to drilling or

wellhead

HSE and Community

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Installing new well tanks• LGO has operated successfully in a Spanish National Park for over 6 years

• Goudron is located on the edge of the Trinity Hills Wildlife Reserve

• Operations conducted to the highest international standards of HSE

• Goudron is has achieved T&T STOW certification

• All LGO staff are local employees where they work; UK, Spain or Trinidad

• We are increasing our engagement with the local community

Trinidad Success Factors

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Installing new well tanks• A successful hydrocarbon basin with mature, but under-developed, oil and gas resources

• Effective, competitive and cost conscious oil service sector

• Supportive government policies and regulatory framework

• Clear and transparent environmental regulations and process, and experience to apply it to the oil industry

• Effective and timely decision making – pro-business and essentially apolitical

• Experienced, well trained, local work force

• Progressive tax and royalty regime that protects activity from oil price volatility

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Conclusions

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LGO’s Trinidad-focused strategy is paying off. Corporate expertise has been effectively blended with local skills

Despite the current depressed oil price LGO’s low cost of operation makes production profitable

LGO will maintain its core program at Goudron in 2015; including at least 7 new deep wells and further infrastructure

With a supportive State partner/government old oil fields can be a valuable source of revenue, employment and indigenous oil supply

LGO hopes to repeat its Goudron experience at Ayoluengo

Conclusions

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Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets

London (AIM): LGOwww.lgo-energy.com