Delivering Growth
Through Acquisition of Proven Reserves 
& Enhancement of Producing Assets
ANNUAL REPORT AND
ACCOUNTS 2014
Company Number 05901339
Registered office: 
Suite 4B, Princes House 
38 Jermyn Street 
London SW1Y 6DN
LGO ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2014 LGO Energy plc Report and Accounts 2014
HigHLigHtS 1
CHairmaN’S StatemeNt 2
CHief exeCutive’S revieW 4
fiNaNCe revieW 9
BoarD of DireCtorS 10
DireCtorS’ rePort 12
CorPorate goverNaNCe StatemeNt 14
iNDePeNDeNt auDitorS rePort to tHe 
SHareHoLDerS of Lgo eNergY PLC 17
 fiNaNCiaL StatemeNtS 18
  grouP StatemeNt of ComPreHeNSive iNCome 
for tHe Year eNDeD 31 DeCemBer 2014 18
  grouP StatemeNt of fiNaNCiaL PoSitioN 
aS at 31 DeCemBer 2014 19
  ComPaNY StatemeNt of fiNaNCiaL PoSitioN 
aS at 31 DeCemBer 2014 20
  grouP StatemeNt of CaSH fLoWS 
for tHe Year eNDeD 31 DeCemBer 2014 21
  ComPaNY StatemeNt of CaSH fLoWS 
for tHe  Year eNDeD 31 DeCemBer 2014 22
  StatemeNt of CHaNgeS iN eQuitY 
for tHe Year eNDeD 31 DeCemBer 2014 23
  NoteS to tHe fiNaNCiaL StatemeNtS 
for tHe Year eNDeD 31 DeCemBer 2014 25
 CorPorate iNformatioN iBC
Lgo energy plc (“Lgo” or “the Company”) is a company incorporated in england and Wales which is quoted on aim with subsidiaries operating 
in trinidad and Spain. its principal activities are the production and exploration of oil and gas.
LGO Energy plc Report and Accounts 2014
registered Number 05901339
Directors Steve Horton – Chairman
Neil ritson – Chief executive officer
fergus Jenkins – Chief operations officer
James thadchanamoorthy – Chief financial officer
michael Douglas – Non-executive Director
iain Patrick – Non-executive Director
Company Secretary James thadchanamoorthy
registered office Suite 4B, Princes House 
38 Jermyn Street 
London SW1Y 6DN
united Kingdom
tel: +44 (0) 20 3794 9230
fax: +44 (0) 20 3794 9231
email: info@lgo-energy.com
Website: www.lgo-energy.com
auditors Chapman Davis LLP
2 Chapel Court
London Se1 1HH
united Kingdom
Solicitors Kerman & Co LLP
200 the Strand
London WC2r 0er
united Kingdom
Nominated advisor and Joint Broker Beaumont Cornish Limited
2nd floor, Bowman House 
29 Wilson Street 
London eC2m 2SJ
united Kingdom
Joint Broker firstenergy Capital LLP 
85 London Wall 
London eC2m 7aD
united Kingdom
Share registrars Share registrars Limited
Suite e, first floor
9 Lion and Lamb Yard 
farnham, Surrey gu9 7LL
united Kingdom
Principal Bankers HSBC Bank plc
196 oxford Street
London, W1D 1Nt
united Kingdom
Public relations Bell Pottinger Limited
5th floor, Holborn gate
London WC1v 7QB
united Kingdom
Contents Corporate Information LGO Energy plc Report and Accounts 2014 1
Highlights
For the year ended 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 a 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 existing Cfo and 
Coo to the Board
•	 Company was renamed Lgo energy plc, from Leni gas and oil 
plc, to reflect 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
0
2
4
6
8
10
2014 2013 2012 2011
9.21
5.91
3.35 3.42
Group Revenues (£m)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2.95
1.12
1.09
1.06
2014 2013 2012 2011
Group Gross Profit (£m) 2 LGO Energy plc Report and Accounts 2014
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 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.
0
50,000
100,000
150,000
200,000
250,000
2014 2013 2012 2011
203,712
111,774
58,450
64,650
Group Sales (Barrels) 
0
50
100
150
200
167,432
72,439
4,194
2014 2013 2012
Goudron Sales (Barrels)  LGO Energy plc Report and Accounts 2014 3
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 4 LGO Energy plc Report and Accounts 2014
Chief Executive’s Review
Lgo energy plc (“Lgo”) continues its strategy of 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 ayoleungo 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 
focused 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 through 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. LGO Energy plc Report and Accounts 2014 5
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 
the end of 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. 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.
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 further the 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 program 
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 
Table 1: Goudron 2014 Development Wells
Well Name
Spud 
Date
t otal Depth
(mD feet)
Date t otal
Depth reached
Date Placed
on Production
1 gY-664 28 april 4212 13 may 30 may
2 gY-665 27 may 2750 8 June 15 September
3 gY-666 16 June 3357 1 July 19 September
4 gY-667 10 July 4006 30 July 26 September
5 gY-668 9 august 3026 27 august 24 September
6 gY-669 5 october 3505 24 october 23 January (2015)
7 gY-670 28 october 4300 9 November 12 December
8 gY-671 19 November 3598 6 December 17 December
all depths are quoted as measured depth (mD) in feet below Kelly bushing 6 LGO Energy plc Report and Accounts 2014
Chief Executive’s Review 
continued
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 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  LGO Energy plc Report and Accounts 2014 7
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  8 LGO Energy plc Report and Accounts 2014
Chief Executive's Review 
continued
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.
0
1
2
3
4
5
6
7
8
2014 2013 2012
7.3
3.6
0.1
Goudron Revenues (£m)
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2014 2013
2012
2.4
0.42
(0.24)
Goudron Gross Profit (£m) LGO Energy plc Report and Accounts 2014 9
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 $45.13/bbl, before making a modest recovering, still 
down on 2014 prices. the Company continues to monitor oil price as 
well as those related markets that could impact the Company’s future 
project and operational development plans.
Cash Flow
Cash inflow from operating activities after movements in working 
capital amounted to £0.50 million (2013: outflow £2.82 million). Net cash 
inflow from financing activities was £10.65 million (2013: £4.15 million). 
Net cash outflow from investing activities including the 8 drilled wells, 
was £10.01 million (2013: £1.19 million).
Net Cash Position
Net cash at 31 December 2014 was £1.58 million (2013: £0.34 million).
Outlook
Having drilled 8 wells in 2014, the Company was able to significantly 
increase full year production. With a minimum of further 7 wells 
scheduled for 2015, the full year production for 2015 should show 
another significant increase.
oil price recovery started in Q1 2015, though the price remains volatile 
and significantly down on 2014. the Company is strongly placed to 
deal with this volatility, as it naturally benefits from price rises, whilst 
retaining some protection against price falls through the contractual 
royalty reductions at lower oil prices and through the structuring of the 
BNP loan facility executed in 2015.
Whilst the decline in oil price has seen a number of oil companies 
cut capital expenditure, Lgo has continued its investment through 
the use of internally generated cashflows and the BNP Paribas loan 
facility. With the oil price now showing upward momentum, Lgo is well 
positioned to benefit from these decisions.
James Thadchanamoorthy 
Chief financial officer
1 June 2015
0
20
40
60
80
100
77.12
95.40
84.76
2014 2013 2012
Goudron Realised Oil Price* ($/bbl)
* prices net of First Tranche
-50
-40
-30
-20
-10
0
2014 2013 2012
(14.1)
(25.7)
(45.3)
Goudron Operating Cash Costs Per Barrel ($/bbl) 10 LGO Energy plc Report and Accounts 2014
Board of Directors
Neil Ritson  
Chief Executive Officer  
Age: 59
mr ritson holds a Bachelor degree 
in geophysics. He has worked in the 
energy sector for over 35 years’, initially 
with BP plc, where he held the roles of 
international Chief geophysicist, Head 
of geoscience research and Business 
unit Leader for both Norway and alaska 
exploration.
Subsequently mr ritson managed the 
international operations of Burlington 
resources inc. and more recently he 
was Ceo at regal Petroleum plc before 
founding the vanguard energy group 
where he was Chairman and Ceo.  
mr ritson is the Chairman of Solo oil 
plc, the managing Director of Nr global 
Consulting Limited and a Director 
of marylebone Consulting Limited. 
He is also a Non-executive Director 
of enovation resources Limited, a 
Bermudan registered private company 
active in the uK North Sea. 
Fergus Jenkins 
Chief Operating Officer 
Age: 45
mr Jenkins is a Chartered engineer 
with a Bachelor of engineering degree 
in mining engineering and a master 
of engineering degree in Petroleum 
engineering. He has over 20 years’ of 
experience working in industry, initially 
in mining before moving to petroleum.
mr Jenkins has held positions in drilling, 
reservoir engineering and petroleum 
engineering and has worked both 
offshore and onshore. the assets that 
he has worked on are spread around 
the globe in areas as diverse as the 
uK, Libya, Nigeria, ghana, and Cote 
d’ivoire.  
fergus has held technical and 
increasingly senior managerial 
positions in mid-sized independent oil 
companies, including enterprise oil, 
LaSmo, Calenergy, omv (uK) Ltd and 
afren plc. mr Jenkins is an executive 
Director of Solo oil plc.
James Thadchanamoorthy
Chief Financial Officer 
Age: 42
mr thadchanamoorthy holds a Bachelor 
of Science degree in Chemistry and is 
a member of the Chartered institute of 
management accountants.
mr thadchanamoorthy has over 
20 years’ finance and commercial 
experience, initially in investment 
banking, where he worked for merrill 
Lynch and Barclays Capital, before 
moving into the oil and gas industry.  
He spent over 10 years’ at BP where 
he held a number of commercial and 
financial management roles in both the 
upstream and Downstream divisions.
Since leaving BP, mr thadchanamoorthy 
has focused on start-up and early stage 
businesses.  He is currently a Director at 
Navitas renewables Ltd, a uK registered 
company where he worked in a fund 
raising capacity, prior to joining Lgo plc 
in January 2012 to head up the finance 
team. LGO Energy plc Report and Accounts 2014 11
Steve Horton 
Non-Executive Chairman, 
Age 61
mr Horton has 40 years’ experience 
working in the energy industry around 
the world, including 27 years with BP plc 
where he held several executive roles 
including worldwide Director of Drilling. 
He holds degrees in mining engineering 
and Business administration.
after leaving BP in 2003, mr Horton co-
founded Silverstone energy Limited, 
a North Sea focused private equity 
funded independent oil and gas 
company, which grew rapidly from 
start-up through operated exploration 
and development through to 
production within four years. more 
recently mr Horton served on the 
Board of valiant Petroleum plc, and 
as managing Director of NewDevCo 
Limited has provided board advisory 
and consulting services to a number 
of oil, energy, minerals, technology 
and service companies, and financial 
institutions.
mr Horton sits on both the remuneration 
Committee and the audit Committee.
Iain Patrick 
Non-Executive Director, 
Age: 57
mr Patrick has over 30 years’ experience 
in the international oil and gas industry. 
after graduating in law, mr Patrick 
worked as an oil industry lawyer before 
joining monument oil and gas plc 
in 1988 where he held the position 
of Commercial and Legal Director, 
responsible for commercial activities 
worldwide.
after the sale of monument in 1999 
mr Patrick co-founded PWx Limited, 
providing business development 
support to a number of oil and gas 
companies internationally. Subsequently 
mr Patrick was Commercial Director of 
gulf Keystone Petroleum (uK) Limited 
after which he founded trinity energy 
Limited, an oil and gas consultancy of 
which he is currently Ceo. iain is a Non-
executive Director of madagascar oil 
Ltd.
mr Patrick chairs the audit Committee 
and sits on the remuneration 
Committee.
Michael Douglas 
Non-Executive Director 
Age: 60
mr Douglas has worked in the business 
consultancy sector for 40 years’. He was 
managing Partner for Pa Consulting 
group’s international People Practice 
where his responsibilities covered the 
group’s organisational Development, 
Pay & rewards, Search & Selection, 
advertising & Development and Process 
enhancement activities.
Subsequently in 1993 mr Douglas 
founded the Quo group, a consultancy 
specialising in behavioural change, 
performance and talent management, 
leadership development and executive 
coaching. over two decades, michael 
has positioned Quo as one of the 
world’s leading change specialists.
michael himself works extensively with 
leadership teams where he fulfils the 
role as coach for senior executives 
across an international portfolio in many 
sectors.
mr Douglas chairs the remuneration 
Committee and sits on the audit 
Committee. 12 LGO Energy plc Report and Accounts 2014
Directors’ Report
the Directors are pleased to present their annual report together with 
the consolidated financial statements for the year from 1 January 2014 
to 31 December 2014.
Principal activities and investment policy
the principal activities of the group are to enhance existing oil and gas 
production and exploration areas. in addition it seeks to identify and 
acquire a number of projects in the oil and gas sector with particular 
emphasis on projects that are in production, as highlighted in the Chief 
executive’s review.
Business review and future developments
a review of the current and future development of the group’s business 
is given in the Chairman’s Statement.
Results and dividends
Loss on ordinary activities of the group after taxation amounted to 
£6,072,000 (2013: £2,851,000 loss). the Directors do not recommend 
payment of a dividend.
Post balance sheet events
at the date these financial statements were approved, the Directors 
were not aware of any significant post balance sheet events other than 
those set out in the notes to the financial statements.
Substantial shareholdings
as at 30 april 2015 interests of 3% or more in the Company’s shares 
were held by:
Shareholder Number of Shares
Percent of  
Issued Capital
Barclayshare Nominees Limited 369,855,543 12.13%
TD Direct Investing Nominees 
(Europe) Limited (SMKTNOMS) 306,143,663 10.04%
HSDL Nominees Limited 192,758,448 6.32%
Hargreaves Lansdown (Nominees) 
Limited (15942) 164,554,870 5.39%
Hargreaves Lansdown (Nominees) 
Limited (VRA) 156,283,569 5.12%
TD Direct Investing Nominees 
(Europe) Limited (SMKTISAS) 118,266,565 3.88%
HSDL Nominees Limited (MAXI) 108,079,989 3.54%
HSBC Client Holdings Nominee (UK) 
Limited 97,713,317 3.20%
Hargreaves Lansdown (Nominees) 
Limited (HLNOM) 93,279,508 3.06%
Directors
the Directors who served during the year were:
  
Executive Directors
David Lenigas resigned 27 august 2014
Neil ritson
fergus Jenkins
James thadchanamoorthy
appointed 22 December 2014
appointed 7 august 2014
Non-Executive Directors
Steve Horton
iain Patrick
michael Douglas
appointed 27 august 2014
appointed 27 august 2014
Directors’ remuneration
the Company remunerates the Directors at a level commensurate 
with the size of the Company and the experience of its Directors. the 
remuneration Committee has reviewed the Directors’ remuneration 
and believes it upholds the objectives of the Company with regard to 
this issue. Details of the Directors’ emoluments and payments made 
for professional services rendered are set out in note 7 to the financial 
statements. 
Directors’ interests
the beneficial interests of the serving Directors in the shares and 
options of the Company as at 31 December 2014 were as follows:
 31 December 2014 31 December 2013
Director Shares Options Shares Options
Neil ritson 17,500,000 100,000,000 17,500,000 100,000,000
fergus Jenkins – 32,500,000 – 32,500,000
James thadchanamoorthy 7,140,001 32,500,000 1,140,001 –
Steve Horton 1,000,000 30,000,000 1,000,000 15,000,000
iain Patrick – 15,000,000 – –
michael Douglas – 15,000,000 – –
See note 21 for further details on the options.
Corporate governance
a statement on Corporate governance is set out on pages 14 to 15. 
Environmental responsibility
the Company is aware of the potential impact that its subsidiary 
companies may have on the environment. the Company ensures that 
it and its subsidiaries at a minimum comply with the local regulatory 
requirements and the revised equator Principles with regard to the 
environment. LGO Energy plc Report and Accounts 2014 13
Employment policies
the group will be committed to promoting policies which ensure 
that high calibre employees are attracted, retained and motivated, to 
ensure the on-going success for the business. employees and those 
who seek to work within the group are treated equally regardless of 
sex, marital status, creed, colour, race or ethnic origin. 
Health and safety
the group’s aim will be to achieve and maintain a high standard 
of workplace safety. in order to achieve this objective the group 
will provide training and support to employees and set demanding 
standards for workplace safety.
Payment to suppliers
the group’s policy is to agree terms and conditions with suppliers in 
advance; payment is then made in accordance with the agreement 
provided the supplier has met the terms and conditions. the 
Company’s trade payables as at 31 December 2014 were equivalent 
to 29 days costs.
Charitable donations
During the year the group made charitable donations of £300.
Annual general meeting (“AGM”)
this report and financial statements will be presented to shareholders 
for their approval at an agm. the Notice of the agm will be distributed 
to shareholders together with the annual report.
Auditors
in accordance with section 384 of the Companies act 2006, a resolution 
to reappoint Chapman Davis LLP and to authorise the Directors to fix 
their remuneration will be placed at the next annual general meeting.
Going concern
Notwithstanding the loss incurred during the year under review, 
the Directors are of the opinion that on-going evaluations of the 
Company’s interests indicate that preparation of the group’s accounts 
on a going concern basis is appropriate.
Statement of disclosure of information to auditors
as at the date of this report the serving Directors confirm that:
•	 So far as each Director is aware, there is no relevant audit 
information of which the Company’s auditors are unaware, and
•	 they have taken all the steps that they ought to have taken as 
Directors in order to make themselves aware of any relevant 
audit information and to establish that the Company’s auditor are 
aware of that information.
Statement of Directors’ responsibilities 
Company law in the united Kingdom requires the Directors to prepare 
financial statements for each financial year which give a true and fair 
view of the state of affairs of the Company and the group and of the 
profit or loss of the group for that period. in preparing those financial 
statements, the Directors are required to:
•	 select suitable accounting policies and then apply them 
consistently;
•	 make judgments and estimates that are reasonable and prudent;
•	 state whether applicable accounting standards have been 
followed, subject to any material departures disclosed and 
explained in the financial statements;
•	 prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the group will continue 
in business.
the Directors are responsible for keeping proper accounting records, 
for safeguarding the assets of the group and for taking reasonable 
steps for the prevention and detection of fraud and other irregularities. 
they are also responsible for ensuring that the annual report includes 
information required by the alternative investment market.
Electronic communication
the maintenance and integrity of the Company’s website is the 
responsibility of the Directors: the work carried out by the auditors 
does not involve consideration of these matters and, accordingly, 
the auditors accept no responsibility for any changes that may have 
occurred to the financial statements since they were initially presented 
on the website.
Legislation in the united Kingdom governing the preparation and 
dissemination of the financial statements may differ from legislation in 
other jurisdictions
By order of the Board:
James Thadchanamoorthy 
Company Secretary
1 June 2015 14 LGO Energy plc Report and Accounts 2014
Corporate Governance Statement
the Board is committed to maintaining high standards of corporate 
governance. the Listing rules of the financial Services authority 
incorporate the uK Corporate governance Code, which sets out 
the principles of good governance, and the Code of Best Practice 
for listed companies. Whilst the Company is not required to comply 
with the uK Corporate governance Code, the Company’s corporate 
governance procedures take due regard of the principles of good 
governance set out in the uK Corporate governance Code in relation 
to the size and the stage of development of the Company.
Board of Directors
in 2014 the Company expanded its Board to align the Board capability 
with the increased demands of the businesses. the Board of Directors 
comprises three executive Directors and three Non-executive 
Directors. the Directors are of the opinion that the Board comprises a 
suitable balance and that the recommendations of the uK Corporate 
governance Code have been implemented to an appropriate level. 
the Board, through the Chairman and the Chief executive officer 
in particular, maintains regular contact with its advisers and public 
relations consultants in order to ensure that the Board develops an 
understanding of the views of major shareholders about the Company. 
Board meetings
the Board meets regularly throughout the year. for the year ending 
31 December 2014, the Board met 14 times in relation to normal 
operational matters. the Board is responsible for formulating, 
reviewing and approving the Company’s strategy, financial activities 
and operating performance. Day to day management is devolved to 
the executive Directors who are charged with consulting the Board on 
all significant financial and operational matters. 
all Directors have access to the advice of the Company’s solicitors and 
the Company Secretary ensures necessary information is supplied to 
the Directors on a timely basis to enable them to discharge their duties 
effectively, and all Directors have access to independent professional 
advice, at the Company’s expense, as and when required.
Board committees
the Board has established the following committees, each which has 
its own terms of reference:
audit Committee
the audit Committee is responsible for overseeing the group’s 
financial reporting disclosure process; this also includes the choice 
of appropriate accounting policies. it also monitors internal financial 
controls as well as overseeing the hiring and performance of the 
external auditors. the audit Committee comprises three Directors, iain 
Patrick (Chairman), michael Douglas and Steve Horton.
remuneration Committee
the remuneration Committee is responsible for making 
recommendations to the Board on the remuneration for Directors 
and Senior management. it comprises three Non-executive Directors, 
michael Douglas (Chairman), iain Patrick and Steve Horton. financial 
packages for Directors are established by reference to those prevailing 
in the employment market for executives of equivalent status both in 
terms of level of responsibility of the position and their achievement of 
recognized job qualifications and skills. the Committee will also have 
regard to the terms which may be required to attract an equivalent 
experienced executive to join the Board from another company. 
Nomination Committee
the Directors do not consider that, given the size of the Board, it is 
appropriate to have a Nomination Committee. the appropriateness 
of such a committee will however, be kept under regular review by the 
Board.
Internal controls 
the Directors acknowledge their responsibility for the group’s systems 
of internal controls and for reviewing their effectiveness. these internal 
controls are designed to safeguard the assets of the Company and 
to ensure the reliability of financial information for both internal use 
and external publication. Whilst they are aware that no system can 
provide absolute assurance against material misstatement or loss, in 
light of increased activity and further development of the Company, 
continuing reviews of internal controls will be undertaken to ensure 
that they are adequate and effective. 
Risk management
the Board considers risk assessment to be important in achieving its 
strategic objectives. there is a process of evaluation of performance 
targets against forecasts, through regular reviews by senior 
management. Project milestones and timelines are regularly reviewed.
Risks and uncertainties
the principal risks facing the Company are set out below. risk 
assessment and evaluation is an essential part of the group’s planning 
and an important aspect of the group’s internal control system.
general and economic risks
•	 Contractions in the world’s major economies or increases in the 
rate of inflation resulting from international conditions;
•	 movements in the equity and share markets in the united Kingdom 
and throughout the world;
•	 Weakness in global equity and share markets in particular, in 
the united Kingdom, and adverse changes in market sentiment 
towards the resource industry;
•	 Currency exchange rate fluctuations and, in particular, the relative 
prices of uS Dollar, euro, the trinidadian Dollar and the uK Pound;
•	 exposure to interest rate fluctuations; and
•	 adverse changes in factors affecting the success of exploration 
and development operations, such as: increases in expenses, 
changes in government policy and further regulation of the 
industry. LGO Energy plc Report and Accounts 2014 15
funding risk
•	 the group or the companies in which it has invested may not be 
able to raise, either by debt or further equity, sufficient funds to 
enable completion of planned exploration, investment and/or 
development projects.
Commodity risk
•	 Commodities are subject to high levels of volatility in price and 
demand. the price of commodities depends on a wide range of 
factors, most of which are outside the control of the Company. 
exploration, production, processing and transportation costs also 
depend on many factors, including commodity prices, capital and 
operating costs in relation to any operational site.
•	 in particular the group is subject to the ongoing market 
movement of the world price of oil and exposed to those risks 
which that entails.
market risk
•	 the ability of the group (and the companies it invests in) to 
continue to secure sufficient and profitable sales contracts to 
support its operations is a key business risk
exploration, development and production risks
•	 oil and gas exploration and development activity is subject to 
numerous risks, including failure to achieve estimated oil reserves, 
recovery and production rates and capital and operating costs.
•	 Success in identifying economically recoverable reserves can 
never be guaranteed. the Company also cannot guarantee that 
the companies in which it has invested will be able to obtain the 
necessary permits and approvals required for development of 
their projects.
•	 Some of the countries in which the Company operates have 
native title laws which could affect exploration, development and 
production activities. the companies in which the Company has an 
interest may be required to undertake clean-up programmes on 
any contamination arising from their operations or operations of 
previous owners or to participate in site rehabilitation programmes 
which may vary from country to country. the group’s policy is to 
follow all applicable laws and regulations and the Company is not 
currently aware of any material issues in this regard.
•	 timely approval of production permits and operating plans 
through the respective regulatory agencies cannot be guaranteed.
•	 availability of skilled workers is an on-going challenge.
•	 unforeseen major failure, breakdowns or repairs required to key 
items of plant and equipment can result in significant delays, 
notwithstanding regular programmes of repair, maintenance and 
upkeep.
Business risk
the Board regularly evaluates and reviews all business risks when 
reviewing project timelines. the types of risks reviewed also include:
•	 occupational Health, Safety and environmental requirements
•	 regulatory and compliance obligations
•	 Legal risks relating to contracts, licenses and agreements
•	 insurance risks
•	 Political risks deemed where appropriate
Insurance
the group maintains insurance in respect of its Directors and officers 
against liabilities in relation to the Company.
Treasury policy
the group finances its operations through equity and debt, and holds 
its cash as a liquid resource to fund the obligations of the group. 
Decisions regarding the management of these assets are approved 
by the Board.
Securities trading
the Board has adopted a Share Dealing Code that applies to Director, 
senior management and any employee who is in possession of ‘inside 
information’. all such persons are prohibited from trading in the 
Company’s securities if they are in possession of ‘inside information’. 
Subject to this condition and trading prohibitions applying to certain 
periods, trading can occur provided the relevant individual has 
received the appropriate prescribed clearance.
Relations with shareholders
the Board is committed to providing effective communication with 
the shareholders of the Company. Significant developments are 
disseminated through stock exchange announcements and regular 
updates of the Company website. the Board views the agm as a 
forum for communication between the Company and its shareholders 
and encourages their participation in its agenda. 16 LGO Energy plc Report and Accounts 2014
Glossary & Notes
3D = three-dimensional
aim = London Stock exchange alternative investment market
aPi = american Petroleum institute
barrel = 45 uS gallons
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 LGO Energy plc Report and Accounts 2014 17
Independent Auditors Report to the Shareholders of LGO Energy plc
We have audited the financial statements of Lgo energy plc for the 
year ended 31 December 2014 which comprise the group Statement of 
Comprehensive income, the group and Parent Company Statements 
of financial Position, the group and Parent Company Statements of 
Cash flows, the group and Parent Company Statements of Changes in 
equity and the related notes 1 to 26. the financial reporting framework 
that has been applied in their preparation is applicable law and 
international financial reporting Standards (ifrSs) as adopted by the 
european union.
this report is made solely to the Company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies act 2006. 
our audit work has been undertaken so that we might state to the 
Company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose. to the fullest extent 
permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members, as a body, for 
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
as explained more fully in the Directors’ responsibilities Statement 
set out within the Directors’ report, the Directors are responsible for 
the preparation of the financial statements and for being satisfied that 
they give a true and fair view. our responsibility is to audit the financial 
statements in accordance with applicable law and international 
Standards on auditing (uK and ireland). those standards require us 
to comply with the auditing Practices Board’s ethical Standards for 
auditors.
Scope of the audit
an audit involves obtaining evidence about the amounts and disclosures 
in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement, whether 
caused by fraud or error. this includes an assessment of: whether the 
accounting policies are appropriate to the group’s and the parent 
Company’s circumstances and have been consistently applied and 
adequately disclosed; the reasonableness of significant accounting 
estimates made by the Directors; and the overall presentation of the 
financial statements.
Opinion on financial statements
in our opinion:
•	 the financial statements give a true and fair view of the state of the 
group’s and of the Parent Company’s affairs as at 31 December 
2014 and of the group’s and the Parent Company’s losses for the 
year then ended;
•	 the financial statements have been properly prepared in 
accordance with ifrSs as adopted by the european union; and
•	 the financial statements have been prepared in accordance with 
the requirements of the Companies act 2006 and, as regards the 
group financial statements, article 4 of the iaS regulation.
Opinion on other matters prescribed by the Companies Act 
2006
in our opinion:
•	 the information given in the Directors’ report for the financial year 
for which the financial statements are prepared is consistent with 
the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
under the Companies act 2006 we are required to report to you if, in 
our opinion:
•	 adequate accounting records have not been kept by the Parent 
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
•	 the Parent Company financial statements are not in agreement 
with the accounting records and returns; or
•	 certain disclosures of Directors’ remuneration specified by law are 
not made; or
•	 we have not received all the information and explanations we 
require for our audit.
We have nothing to report by exception.
Rowan J. Palmer (Senior Statutory Auditor) 
for and on behalf of Chapman Davis LLP 
Chartered accountants and Statutory auditors 
London, united Kingdom
1 June 2015 18 LGO Energy plc Report and Accounts 2014
Group Statement of Comprehensive Income
For the year ended 31 December 2014
 Note
Year ended  
31 December 
2014 
£ 000’s
Year ended 
31 December 
2013 
£ 000’s
revenue 2 9,211 5,913
Cost of sales (6,263) (4,794)
Gross profit 2,948 1,119
administrative expenses 3 (4,871) (2,730)
oil & gas exploration costs expensed 11 – (99)
amortisation and depreciation 3 (1,480) (324)
Share based payments 22 (824) (412)
(Loss) from operations (4,227) (2,446)
finance charges 10 (1,293) (342)
other income 8 408 –
(Loss) before taxation (5,112) (2,788)
income tax expense 5 (960) (63)
(Loss) for the year attributable to equity holders of the parent (6,072) (2,851)
Other comprehensive income
exchange differences on translation of foreign operations 622 (20)
Other comprehensive income for the year net of taxation 622 (20)
Total comprehensive income for the year attributable to equity holders of the parent (5,450) (2,871)
Loss per share (pence)
Basic 9 (0.24) (0.15)
Diluted 9 (0.24) (0.15)
all of the operations are considered to be continuing.
the accompanying accounting policies and notes form an integral part of these financial statements.  LGO Energy plc Report and Accounts 2014 19
Group Statement of Financial Position
As at 31 December 2014
 Note
As at 
31 December 
2014 
£ 000’s
as at 
31 December 
2013 
£ 000’s
Assets
Non-current assets
intangible evaluation assets 11 11,586 9,037
goodwill 11 3,083 3,083
oil and gas assets 12 12,173 6,867
Property, plant and equipment 12 2,322 882
Total non-current assets 29,164 19,869
Current assets
inventories 15 303 244
t rade and other receivables 14 2,803 2,238
Derivative financial instrument 16 – 500
Cash and cash equivalents 1,583 341
Total current assets 4,689 3,323
Total assets 33,853 23,192
Liabilities
Current liabilities
t rade and other payables 17 (4,679) (2,425)
Borrowings 18 (2,915) (2,277)
Deferred consideration 17 (737) (120)
Total current liabilities (8,331) (4,822)
Non-current liabilities
Deferred consideration 17 (1,233) (1,850)
Deferred taxation 17 (1,020) –
Provisions 19 (906) (796)
Total non-current liabilities (3,159) (2,646)
Total liabilities (11,490) (7,468)
Net assets 22,363 15,724
Shareholders’ equity
Called-up share capital 20 1,364 1,125
Share premium 47,437 36,555
Share based payments reserve 21 1,296 412
retained earnings (32,169) (26,606)
revaluation surplus 3,907 4,332
foreign exchange reserve 528 (94)
Total equity attributable to equity holders of the parent 22,363 15,724
these financial statements were approved by the Board of Directors on 1 June 2015 and signed on its behalf by: 
Neil Ritson James Thadchanamoorthy
Chief Executive Officer Chief Financial Officer
the accompanying accounting policies and notes form an integral part of these financial statements.  20 LGO Energy plc Report and Accounts 2014
Company Statement of Financial Position
As at 31 December 2014
 Note
As at 
31 December 
2014 
£ 000’s
as at 
31 December 
2013 
£ 000’s
Assets
Non-current assets
Property, plant and equipment 12 1 – 
investment in subsidiaries 13 1 1
trade and other receivables 14 27,455 17,553
Total non-current assets 27,457 17,554
Current assets
trade and other receivables 14 117 1,373
Derivative financial instrument 16 – 500
Cash and cash equivalents 483 41
Total current assets 600 1,914
Total assets 28,057 19,468
Liabilities
Current liabilities
trade and other payables 17 (550) (1,574)
Borrowings 18 (2,915) (2,277)
Deferred consideration 17 (737) (120)
Total current liabilities (4,202) (3,971)
Non-current liabilities
Deferred consideration 17 (1,233) (1,850)
Total non-current liabilities (1,233) (1,850)
Total liabilities (5,435) (5,821)
Net assets 22,622 13,647
Shareholders’ equity
Called-up share capital 20 1,364 1,125
Share premium 47,437 36,555
Share based payments reserve 21 1,296 412
retained earnings 26 (27,475) (24,445)
Total equity attributable to equity holders of the parent 22,622 13,647
these financial statements were approved by the Board of Directors on 1 June 2015 and signed on its behalf by:
Neil Ritson James Thadchanamoorthy
Chief Executive Officer Chief Financial Officer
the accompanying accounting policies and notes form an integral part of these financial statements.  LGO Energy plc Report and Accounts 2014 21
Group Statement of Cash Flows
For the year ended 31 December 2014
 
Year ended 
31 December 
2014 
£ 000’s
Year ended 
31 December 
2013 
£ 000’s
Cash outflow from operating activities
operating (loss) (4,227) (2,446)
(increase) in trade and other receivables (565) (1,666)
increase in trade and other payables 2,269 651
increase in provisions 150 –
(increase) in inventories (59) –
Depreciation 1,480 291
amortisation 631 33
tangible asset write-down charge – 3
Share based payments 824 412
income tax paid – (96)
Net cash (outflow) from operating activities 503 (2,818)
Cash flows from investing activities
Proceeds from equity swap arrangement 908 –
Payments to acquire subsidiaries – (7)
Net payments to acquire intangible assets (1,693) (108)
Payments to acquire tangible assets (9,310) (1,076)
Net cash outflow from investing activities (10,095) (1,191)
Cash flows from financing activities
issue of ordinary share capital 11,809 2,900
Share issue costs (688) (49)
finance charges paid (1,149) (218)
repayment of borrowings (4,598) (2,244)
Proceeds of borrowings 5,279 3,764
Net cash inflow from financing activities 10,653 4,153
Net increase/(decrease) in cash and cash equivalents 1,061 144
Foreign exchange differences on translation 181 (23)
Cash and cash equivalents at beginning of year 341 220
Cash and cash equivalents at end of year 1,583 341 22 LGO Energy plc Report and Accounts 2014
Company Statement of Cash Flows
For the year ended 31 December 2014
 
Year ended 
31 December 
2014 
£ 000’s
Year ended 
31 December 
2013 
£ 000’s
Cash outflow from operating activities
operating profit/(loss) 673 (1,926)
Decrease/(increase) in trade and other receivables 1,256 (1,218)
(Decrease)/increase in trade and other payables (1,024) 292
Share based payments 824 412
Loan impairment (2,902) –
Depreciation – 5
other non-cash adjustments – 2
Net cash outflow from operating activities (1,173) (2,433)
Cash flows from investing activities
Proceeds from equity swap arrangement 908 –
Loans granted to subsidiaries (9,902) (1,716)
Payments to acquire tangible assets (1) –
Net cash outflow from investing activities (8,995) (1,716)
Cash flows from financing activities
issue of ordinary share capital 11,809 2,900
Share issue costs (688) (49)
finance charges (1,149) (218)
repayments of borrowings (4,598) (2,244)
Proceeds of borrowings 5,279 3,764
Net cash inflow from financing activities 10,653 4,153
Net increase/(decrease) in cash and cash equivalents 485 4
foreign exchange differences on borrowings (43) –
Cash and cash equivalents at beginning of year 41 37
Cash and cash equivalents at end of year 483 41 LGO Energy plc Report and Accounts 2014 23
Group Statement of Changes in Equity
For the year ended 31 December 2014
 
Called up 
share capital 
£ 000’s
Share 
premium 
reserve 
£ 000’s
Share based 
payments 
reserve 
£ 000’s
Retained 
earnings 
£ 000’s
Foreign 
exchange 
reserve 
£ 000’s
Revaluation 
surplus 
£ 000’s
Total Equity 
£ 000’s
Group
As at 31 December 2012 939 33,890 1,187 (24,942) (74) 4,332 15,332
Loss for the year – – – (2,851) – – (2,851)
Currency translation differences – – – – (20) – (20)
Total comprehensive income – – – (2,851) (20) – (2,872)
Share capital issued 186 2,714 – – – – 2,900
Cost of share issue – (49) – – – – (49)
expiration of options – – (1,187) 1,187 – – –
Share based payments – – 412 – – – 412
Total contributions by and 
distributions to owners of the 
Company 186 2,665 (775) 1,187 – – 3,263
As at 31 December 2013 1,125 36,555 412 (26,606) (94) 4,332 15,724
Loss for the year – – – (6,072) – – (6,072)
revaluation surplus 
amortisation 425 (425) –
Currency translation differences – – – – 622 – 622
Total comprehensive income – – – (5,647) 622 (425) (5,450)
Share capital issued 239 11,570 – – – – 11,809
Cost of share issue – (688) – – – – (688)
exercise of warrants – – (84) 84 – – –
Share based payments – – 968 – – – 968
Total contributions by and 
distributions to owners of the 
Company 239 10,882 884 84 – – 12,089
As at 31 December 2014 1,364 47,437 1,296 (32,169) 528 3,907 22,363 24 LGO Energy plc Report and Accounts 2014
Company Statement of Changes in Equity
For the year ended 31 December 2014
 
Called up 
share capital 
£ 000’s
Share 
premium 
reserve 
£ 000’s
Share based 
payments 
reserve 
£ 000’s
Retained 
earnings 
£ 000’s
Total Equity 
£ 000’s
Company
As at 31 December 2012 939 33,890 1,187 (23,364) 12,652
Loss for the year – – – (2,268) (2,268)
Total comprehensive income
Share capital issued 186 2,714 – – 2,900
Cost of share issue – (49) – – (49)
expiration of options – – (1,187) 1,187 –
Share based payments – – 412 – 412
Total contributions by and distributions to owners of the 
Company 186 2,665 (775) 1,187 3,263
As at 31 December 2013 1,125 36,555 412 (24,445) 13,647
Loss for the year – – – (3,114) (3,114)
Total comprehensive income
Share capital issued 239 11,570 – – 11,809
Cost of share issue – (688) – – (688)
exercise of warrants – – (84) 84 –
Share based payments – – 968 – 968
Total contributions by and distributions to owners of the 
Company 239 10,882 884 84 12,089
As at 31 December 2014 1,364 47,437 1,296 (27,475) 22,622 LGO Energy plc Report and Accounts 2014 25
1 Summary of significant accounting policies
1.01   General information and authorisation of financial 
statements
Lgo energy plc is a public limited company registered in the 
united Kingdom under the Companies act 2006. the address of its 
registered office is Suite 4B, Princes House, 38 Jermyn Street, London 
SW1Y 6DN. the Company’s ordinary shares are traded on the aim 
market operated by the London Stock exchange. the group financial 
statements of Lgo energy plc for the year ended 31 December 2014 
were authorised for issue by the Board on 1 June 2015 and the balance 
sheets signed on the Board’s behalf by mr. Neil ritson and mr. James 
thadchanamoorthy.
1.02  Statement of compliance with IFRS
the group’s financial statements have been prepared in accordance 
with international financial reporting Standards (ifrS). the Company’s 
financial statements have been prepared in accordance with ifrS as 
adopted by the european union and as applied in accordance with 
the provisions of the Companies act 2006. the principal accounting 
policies adopted by the group and Company are set out below.
New standards and interpretations not applied
at the date of authorisation of these financial Statements, the 
following Standards and interpretations which have not been applied 
in these financial Statements were in issue but not yet effective (and in 
some cases had not yet been adopted by the eu):
ifrS 9 financial instruments 
ifrS 14 regulatory Deferral accounts 
ifrS 15 revenue from Contracts with Customers 
iaS 16 & iaS 38 Clarification of acceptable methods of Depreciation 
and amortisation 
iaS 19 Defined Benefit Plans: employee Contributions (amendment) 
iaS 27 equity method in Separate financial Statements (amendment)
the Directors do not expect that the adoption of the Standards and 
interpretations listed above will have a material impact on the financial 
statements of the group in future periods however, it is not practicable 
to provide a reasonable estimate of the effect of these standards until 
a detailed review has been completed.
1.03  Basis of preparation
the consolidated financial statements have been prepared on the 
historical cost basis, except for the measurement to fair value of assets 
and financial instruments as described in the accounting policies 
below, and on a going concern basis.
the financial report is presented in Pound Sterling (£) and all values 
are rounded to the nearest thousand pounds (£‘000) unless otherwise 
stated.
1.04  Basis of consolidation
the consolidated financial information incorporates the results of 
the Company and its subsidiaries (“the group”) using the purchase 
method. in the consolidated balance sheet, the acquiree’s identifiable 
assets, liabilities are initially recognised at their fair values at the 
acquisition date. the results of acquired operations are included in 
the consolidated income statement from the date on which control 
is obtained. inter-company transactions and balances between group 
companies are eliminated in full. 
1.05  Goodwill and intangible assets
intangible assets are recorded at cost less eventual amortisation 
and provision for impairment in value. goodwill on consolidation is 
capitalised and shown within non-current assets. Positive goodwill 
is subject to an annual impairment review, and negative goodwill is 
immediately written-off to the income statement when it arises.
1.06   Oil and gas exploration assets and development/
producing assets 
the group applies the successful efforts method of accounting 
for oil and gas assets, having regard to the requirements of ifrS 6 
‘exploration for and evaluation of mineral resources’.
all licence acquisition, exploration and evaluation costs are initially 
capitalised as intangible fixed assets in cost centres by field or 
by exploration area, as appropriate, pending determination 
of commerciality of the relevant property. Directly attributable 
administration costs are capitalised insofar as they relate to specific 
exploration activities, as are finance costs to the extent they are directly 
attributable to financing development projects. Pre-licence costs and 
general exploration costs not specific to any particular licence or 
prospect are expensed as incurred.
if prospects are deemed to be impaired (‘unsuccessful’) on completion 
of the evaluation, the associated costs are charged to the income 
statement. if the field is determined to be commercially viable, the 
attributable costs are transferred to development/production assets 
within property, plant and equipment in single field cost centres.
Subsequent expenditure is capitalised only where it either enhances 
the economic benefits of the development/producing asset or replaces 
part of the existing development/producing asset.
increases in the carrying amount arising on revaluation of oil and gas 
properties are credited to other comprehensive income and shown 
as revaluation surplus reserve in shareholders’ equity. Decreases 
that offset previous increases of the same asset are charged in other 
comprehensive income and debited against revaluation surplus 
reserve directly in equity; all other decreases are charged to the 
income statement. each year the difference between depreciation 
based on the revalued carrying amount of the asset charged to the 
income statement, and depreciation based on the asset’s original cost 
is transferred from ‘revaluation surplus reserve’ to ‘retained earnings.
Net proceeds from any disposal of an exploration asset are initially 
credited against the previously capitalised costs. any surplus proceeds 
are credited to the income statement. Net proceeds from any disposal 
of development/producing assets are credited against the previously 
capitalised cost. a gain or loss on disposal of a development/producing 
asset is recognised in the income statement to the extent that the net 
Notes to the Financial Statements 26 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
proceeds exceed or are less than the appropriate portion of the net 
capitalised costs of the asset.
1.07  Commercial reserves
Commercial reserves are proven and probable oil and gas reserves, 
which are defined as the estimated quantities of crude oil, natural 
gas and natural gas liquids which geological, geophysical and 
engineering data demonstrate with a specified degree of certainty to 
be recoverable in future years from known reservoirs and which are 
considered commercially producible. there should be a 50 per cent 
statistical probability that the actual quantity of recoverable reserves 
will be more than the amount estimated as a proven and probable 
reserves and a 50 per cent statistical probability that it will be less.
1.08  Depletion and amortisation
all expenditure carried within each field is amortised from the 
commencement of production on a unit of production basis, which 
is the ratio of oil and gas production in the period to the estimated 
quantities of commercial reserves at the end of the period plus the 
production in the period, generally on a field by field basis. in certain 
circumstances, fields within a single development area may be 
combined for depletion purposes. Costs used in the unit of production 
calculation comprise the net book value of capitalised costs plus 
the estimated future field development costs necessary to bring the 
reserves into production. Changes in the estimates of commercial 
reserves or future field development costs are dealt with prospectively.
1.09  Decommissioning
Where a material liability for the removal of production facilities and 
site restoration at the end of the productive life of a field exists, a 
provision for decommissioning is recognised. the amount recognised 
is the present value of estimated future expenditure determined in 
accordance with local conditions and requirements. the cost of the 
relevant tangible fixed asset is increased with an amount equivalent to 
the provision and depreciated on a unit of production basis. Changes 
in estimates are recognised prospectively, with corresponding 
adjustments to the provision and the associated fixed asset.
1.10  Property, plant and equipment
Property, plant and equipment is stated in the Balance Sheet at cost 
less accumulated depreciation and any recognised impairment loss. 
Depreciation on property, plant and equipment other than exploration 
and production assets, is provided at rates calculated to write off the 
cost less estimated residual value of each asset on a straight-line basis 
over its expected useful economic life of between three and eight 
years.
1.11  Inventories
inventories are stated at the lower of cost and net realisable value. Cost 
is determined by the weighted average cost formula, where cost is 
determined from the weighted average of the cost at the beginning of 
the period and the cost of purchases during the period. Net realisable 
value represents the estimated selling price less all estimated costs 
of completion and costs to be incurred in marketing, selling and 
distribution.
1.12  Revenue recognition
revenue represents amounts invoiced in respect of sales of oil and 
gas exclusive of indirect taxes and excise duties and is recognised 
on delivery of product. interest income is accrued on a time basis, 
by reference to the principal outstanding and at the effective rate 
applicable, which is the rate that exactly discounts estimated future 
cash receipts through the expected life of the financial asset to that 
asset’s net carrying amount.
1.13  Foreign currencies
transactions in foreign currencies are translated at the exchange rate 
ruling at the date of each transaction. foreign currency monetary 
assets and liabilities are retranslated using the exchange rates at the 
balance sheet date. gains and losses arising from changes in exchange 
rates after the date of the transaction are recognised in the income 
statement. Non-monetary assets and liabilities that are measured 
in terms of historical cost in a foreign currency are translated at the 
exchange rate at the date of the original transaction.
in the consolidated financial statements, the net assets of the Company 
are translated into its presentation currency at the rate of exchange at 
the balance sheet date. income and expense items are translated at 
the average rates for the period. the resulting exchange differences 
are recognised in equity and included in the translation reserve.
1.14  Operating leases
the costs of all operating leases are charged against operating profit 
on a straight-line basis at existing rental levels. incentives to sign 
operating leases are recognised in the income statement in equal 
instalments over the term of the lease.
1.15  Financial instruments
financial assets and financial liabilities are recognised on the group’s 
balance sheet when the group becomes a party to the contractual 
provisions of the instrument. 
the particular recognition and measurement methods adopted are 
disclosed below:
(i)  Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand 
deposits and other short-term highly liquid investments that are 
readily convertible to a known amount of cash and are subject to an 
insignificant risk of changes in value.
(ii)  t rade receivables
trade receivables do not carry any interest and are stated at their 
nominal value as reduced by appropriate allowances for estimated 
irrecoverable amounts. LGO Energy plc Report and Accounts 2014 27
(iii)  t rade payables
trade payables are not interest-bearing and are stated at their nominal 
value.
(iv)  investments
investments in subsidiaries are stated at cost and reviewed for 
impairment if there are indications that the carrying value may not be 
recoverable.
(v)  equity investments
equity instruments issued by the Company and the group are recorded 
at the proceeds received, net of direct issue costs.
(vi)  Derivative instruments
Derivative instruments are recorded at cost, and adjusted for their 
market value as applicable. they are assessed for any equity and debt 
component which is subsequently accounted for in accordance with 
ifrS’s. the group’s and Company’s only derivative is considered 
to be the equity Swap arrangement as detailed in note 16, which is 
accounted for on a fair value basis in accordance with the terms of the 
agreement, being based around the Company’s share price as traded 
on aim.
1.16  Finance costs
Borrowing costs are recognised as an expense when incurred.
1.17 Borrowings
Borrowings are recognised initially at fair value, net of any applicable 
transaction costs incurred. Borrowings are subsequently carried at 
amortised cost; any difference between the proceeds (net of transaction 
costs) and the redemption value is recognised in the income statement 
over the period of the borrowings using the effective interest method 
(if applicable).
interest on borrowings is accrued as applicable to that class of 
borrowing. 
1.18  Provisions
Provisions are recognised when the group has a present obligation 
(legal or constructive) as a result of a past event, it is probable that an 
outflow of resources embodying economic benefits will be required 
to settle the obligation and a reliable estimate can be made of the 
amount of the obligation.
When the group expects some or all of a provision to be reimbursed, 
for example under an insurance contract, the reimbursement is 
recognised as a separate asset but only when the reimbursement is 
virtually certain. the expense relating to any provision is presented in 
the income statement net of any reimbursement. 
1.19  Dividends
Dividends are reported as a movement in equity in the period in which 
they are approved by the shareholders.
1.20  Taxation
the tax expense represents the sum of the tax currently payable and 
deferred tax.
Current tax, including uK corporation and overseas tax, is provided at 
amounts expected to be paid (or recovered) using the tax rates and 
laws that have been enacted or substantially enacted by the balance 
sheet date.
Deferred tax is the tax expected to be payable or recoverable on 
differences between the carrying amounts of assets and liabilities in 
the financial information and the corresponding tax bases used in the 
computation of taxable profit, and is accounted for using the balance 
sheet liability method. Deferred tax liabilities are generally recognised 
for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits will 
be available against which deductible temporary differences can be 
utilised. Such assets and liabilities are not recognised if the temporary 
difference arises from goodwill or from the initial recognition (other 
than in a business combination) of other assets and liabilities in a 
transaction that affects neither the tax profit nor the accounting profit. 
Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries and associates, and interests in 
joint ventures, except where the group is able to control the reversal 
of the temporary difference and it is probable that the temporary 
difference will not reverse in the foreseeable future.
the carrying amount of deferred tax assets is reviewed at each balance 
sheet date and adjusted to the extent that it is probable that sufficient 
taxable profits will be available to allow all or part of the asset to be 
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in 
the period when the liability is settled or the asset is realised. Deferred 
tax is charged or credited in the income statement, except when it 
relates to items charged or credited directly to equity, in which case 
the deferred tax is also dealt with in equity. 
1.21  Impairment of assets
at each balance sheet date, the group assesses whether there is any 
indication that its property, plant and equipment and intangible assets 
have been impaired. evaluation, pursuit and exploration assets are also 
tested for impairment when reclassified to oil and natural gas assets. 
if any such indication exists, the recoverable amount of the asset is 
estimated in order to determine the extent of the impairment, if any. if 
it is not possible to estimate the recoverable amount of the individual 
asset, the recoverable amount of the cash-generating unit to which the 
asset belongs is determined.
the recoverable amount of an asset or a cash-generating unit is the 
higher of its fair value less costs to sell and its value in use. the value in 
use is the present value of the future cash flows expected to be derived 
from an asset or cash-generating unit. this present value is discounted 
using a pretax rate that reflects current market assessments of the time 
value of money and of the risks specific to the asset, for which future  28 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
Notes to the Financial Statements
cash flow estimates have not been adjusted. if the recoverable amount 
of an asset is less than its carrying amount, the carrying amount of 
the asset is reduced to its recoverable amount. that reduction is 
recognised as an impairment loss.
the group’s impairment policy is to recognise a loss relating to assets 
carried at cost less any accumulated depreciation or amortisation 
immediately in the income statement. 
goodwill acquired in a business combination is, from the acquisition 
date, allocated to each of the cash-generating units, or groups of cash-
generating units, that are expected to benefit from the synergies of 
the combination. goodwill is tested for impairment at least annually, 
and whenever there is an indication that the asset may be impaired. 
an impairment loss is recognised or cash-generating units, if the 
recoverable amount of the unit is less than the carrying amount of the 
unit. the impairment loss is allocated to reduce the carrying amount 
of the assets of the unit by first reducing the carrying amount of any 
goodwill allocated to the cash-generating unit, and then reducing the 
other assets of the unit, pro rata on the basis of the carrying amount of 
each asset in the unit.
if an impairment loss subsequently reverses, the carrying amount of 
the asset is increased to the revised estimate of its recoverable amount 
but limited to the carrying amount that would have been determined 
had no impairment loss been recognised in prior years. a reversal of 
an impairment loss is recognised in the income statement. impairment 
losses on goodwill are not subsequently reversed. 
1.22 Share based payments 
equity settled transactions:
the group provides benefits to employees (including senior executives) 
of the group in the form of share-based payments, whereby employees 
render services in exchange for shares or rights over shares (equity-
settled transactions). 
the cost of these equity-settled transactions with employees is 
measured by reference to the fair value of the equity instruments at 
the date at which they are granted. the fair value is determined by 
using a Black-Scholes model.
in valuing equity-settled transactions, no account is taken of any 
performance conditions, other than conditions linked to the price of 
the shares of Lgo energy plc (market conditions) if applicable. the 
cumulative expense recognised for equity-settled transactions at each 
reporting date until vesting date reflects (i) the extent to which the 
vesting period has expired and (ii) the group’s best estimate of the 
number of equity instruments that will ultimately vest. the income 
Statement charge or credit for a period represents the movement in 
cumulative expense recognised as at the beginning and end of that 
period.
the cost of equity-settled transactions is recognised, together with 
a corresponding increase in equity, over the period in which the 
performance and/or service conditions are fulfilled, ending on the date 
on which the relevant employees become fully entitled to the award 
(the vesting date).
No expense is ultimately recognised for awards that do not vest.
if the terms of an equity-settled award are modified, as a minimum 
an expense is recognised as if the terms had not been modified. in 
addition, an expense is recognised for any modification that increases 
the total fair value of the share-based payment arrangement, or is 
otherwise beneficial to the employee, as measured at the date of 
modification.
the dilutive effect, if any, of outstanding options is reflected as 
additional share dilution in the computation of earnings per share.
1.23  Segmental reporting
operating segments are reported in a manner consistent with the 
internal reporting provided to the chief operating decision-maker. 
the chief operating decision-maker, who is responsible for allocating 
resources and assessing performance of the operating segments, 
has been identified as the Board of Directors that makes strategic 
decisions.
the group has a single business segment: oil and gas exploration, 
development and production. the business segment can be split into 
five geographical segments: Spain, uSa, trinidad & tobago, St. Lucia, 
Cyprus and uK.
1.24  Share issue expenses and share premium account
Costs of share issues are written off against the premium arising on the 
issues of share capital.
1.25 Share based payments reserve
this reserve is used to record the value of equity benefits provided to 
employees and Directors as part of their remuneration and provided to 
consultants and advisors hired by the group from time to time as part 
of the consideration paid.
1.26 Revaluation Surplus Reserve
this reserve is used to record the increase on revaluation of assets, in 
particular of oil and gas properties.
1.27  Critical accounting estimates and assumptions
the group makes estimates and assumptions concerning the future. 
the resulting accounting estimates will, by definition, seldom equal 
the related actual results. the estimates and assumptions that have a 
risk of causing material adjustment to the carrying amounts of assets 
and liabilities within the next financial year are discussed below.
(i)  recoverability of intangible oil and gas costs 
Costs capitalised as intangible assets are assessed for impairment 
when circumstances suggest that the carrying value may exceed its 
recoverable value. this assessment involves judgement as to the likely 
commerciality of the asset, the future revenues and costs pertaining 
and the discount rate to be applied for the purposes of deriving a 
recoverable value.  LGO Energy plc Report and Accounts 2014 29
(ii)  Decommissioning 
the group has decommissioning obligations in respect of its Spanish 
and trinidadian assets. the full extent to which the provision is required 
depends on the legal requirements at the time of decommissioning, 
the costs and timing of any decommissioning works and the discount 
rate applied to such costs. 
(iii)  Share-based payment transactions
the group measures the cost of equity-settled transactions with 
employees by reference to the fair value of the equity instruments at 
the date at which they are granted. the fair value is determined using 
a Black-Scholes model.
1.28 Earnings per share
Basic earnings per share is calculated as net profit attributable to 
members of the parent, adjusted to exclude any costs of servicing 
equity (other than dividends) and preference share dividends, divided 
by the weighted average number of ordinary shares, adjusted for any 
bonus element.
Diluted earnings per share is calculated as net profit attributable to 
members of the parent, adjusted for:
(i)  Costs of servicing equity (other than dividends) and preference 
share dividends;
(ii) the after tax effect of dividends and interest associated with 
dilutive potential ordinary shares that have been recognised as 
expenses; and
(iii) other non-discretionary changes in revenues or expenses during 
the period that would result from the dilution of potential ordinary 
shares; divided by the weighted average number of ordinary 
shares and dilutive potential ordinary shares, adjusted for any 
bonus element. 30 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
2 Turnover and segmental analysis
management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic 
decisions.
the Board has determined there is a single business segment: oil and gas exploration, development and production. the business segment can 
be further split into six geographical segments: trinidad & tobago, Spain, Cyprus, St Lucia, uSa and uK.
Spain and trinidad & tobago, have been reported as the group’s direct oil and gas producing entities, these are the group’s only third party 
revenue generating operations. the uK is the group’s parent and administrative entity and is reported on accordingly.
the Board considers the following external reporting to be appropriate. the Cypriot administration costs are reported in the geographical 
segment of Cyprus, as are the subsidiaries which hold these investments. further breakdown of each of these relative country investments is not 
seen to be informative at this time as a result of their current development stages, and are thus combined and reported under their investment 
entity.
Year ended  
31 December 2014
Corporate 
UK 
£’000
Holding 
Cyprus 
£’000
Holding 
St Lucia 
£’000
Operating 
Spain 
£’000
Operating 
Trinidad 
£’000
Corporate 
US 
£’000
Total 
£’000
Operating profit/(loss) by 
geographical area
revenue (*) – – – 1,605 7,606 – 9,211
operating profit/(loss) (**) 673 (2,596) (5) (510) (1,496) (293) (4,227)
Loan impairment (***) (2,902) 2,609 – – – 293 –
finance charges (1,293) – – – – – (1,293)
finance revenue 408 – – – – – 408
Profit/(loss) before taxation (3,114) 13 (5) (510) (1,496) – (5,112)
Other information
Depreciation and amortisation – – – (472) (1,639) – (2,111)
Capital additions 1 – – 285 10,717 – 11,003
Segment assets
Non-current assets 3,084 – – 8,380 17,700 – 29,164
t rade and other receivables 117 – – 116 2,570 – 2,803
inventories – – – 136 167 – 303
Cash 483 – 1 194 905 – 1,583
Consolidated total assets 3,684 – 1 8,826 21,342 – 33,853
Segment liabilities
t rade and other payables (551) (5) (2) (215) (3,904) (2) (4,679)
taxation – (9) – – (1,011) – (1,020)
Borrowings (2,915) – – – – – (2,915)
Deferred consideration (1,970) – – – – – (1,970)
Provisions – – – (746) (160) – (906)
Consolidated total liabilities (5,436) (14) (2) (961) (5,075) (2) (11,490)
(*) 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 uS and malta focused companies were written off with no impact to the group. LGO Energy plc Report and Accounts 2014 31
2 Turnover and segmental analysis (continued)
Year ended  
31 December 2013
Corporate 
UK 
£’000
Holding 
Cyprus 
£’000
Holding 
St Lucia 
£’000
Operating 
Spain 
£’000
Operating 
Trinidad 
£’000
Corporate 
US 
£’000
Total 
£’000
Operating profit/(loss) by 
geographical area
revenue (*) – – – 2,039 3,874 – 5,913
operating (loss) (1,927) (33) (4) (348) (128) (6) (2,446)
finance charges (342) – – – – – (342)
finance revenue – – – – – – –
Profit/(loss) before taxation (2,269) (33) (4) (348) (128) (6) (2,788)
other information
Depreciation and amortisation (2) – – (101) (221) – (324)
Capital additions – – – 99 1,184 – 1,283
Segment assets
Non-current assets 3,083 – – 9,008 7,778 – 19,869
trade and other receivables 1,873 – 1 278 586 – 2,738
inventories – – – 118 126 – 244
Cash 41 1 – 180 117 2 341
Consolidated total assets 4,997 1 1 9,584 8,607 2 23,192
Segment liabilities
trade and other payables (1,575) (5) (2) (283) (542) (3) (2,410)
taxation – (5) – – (10) – (15)
Borrowings (2,277) – – – – – (2,277)
Deferred consideration (1,970) – – – – – (1,970)
Provisions – – – (796) – – (796)
Consolidated total liabilities (5,822) (10) (2) (1,079) (552) (3) (7,468)
(*) revenues are derived from a single customer/partner within each of these operating countries. 32 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
3 Operating loss
 
2014 
£ 000’s
2013 
£ 000’s
Operating loss is arrived at after charging:
fees payable to the Company’s auditor for:
– the audit of the Company and group accounts 40 40
– audit related assurance services 2 –
Directors’ emoluments – fees and benefits 537 454
Directors’ emoluments – share based payments 776 226
Depreciation
(
*
)
1,480 291
amortisation 631 33
(
*
) 
Depreciation of certain oil and gas assets of £631,000 has been recognised within cost of sales. 
4 Employee information (excluding Directors’)
 
2014 
£ 000’s
2013 
£ 000’s
Staff costs:
Wages and salaries 1,005 1,018
Social security contributions 249 200
Total 1,254 1,218
the average number of employees on a full time equivalent basis during the year was as follows:
 Number Number
administration 9 5
operations 22 27
Total 31 32
5 Taxation
 
2014 
£ 000’s
2013 
£ 000’s
Analysis of charge in year
tax on ordinary activities 960 63
Factors affecting the tax charge for the year:
Loss on ordinary activities before tax 5,112 2,788
Standard rate of corporation tax in the uK 21%/23% 23%/24%
 
Loss on ordinary activities multiplied by the standard rate of corporation tax 1,099 648
effects of:
Non-deductible expenses (216) (100)
Withholding tax on overseas interest – –
overseas tax on profits 9 63
overseas deferred tax expense 951 –
future tax benefit not brought to account (883) (548)
Current tax charge for year 960 63
No deferred tax asset has been recognised in the Company because there is uncertainty in the timing of suitable future profits against which the 
accumulated losses can be offset.  LGO Energy plc Report and Accounts 2014 33
6 Dividends
No dividends were paid or proposed by the Directors (2013: nil).
7 Directors’ emoluments
 
2014 
£ 000’s
2013 
£ 000’s
Directors’ remuneration 1,313 680
2014
Directors 
fees 
£000’s
Pension 
and medical 
benefits 
£000’s
Consultancy 
fees 
£000’s
Share based 
payments* 
£000’s
Total 
£000’s
Executive Directors
David Lenigas 16 – 160 – 176
Neil ritson 187 11 – 88 286
fergus Jenkins 3 – – 27 30
James thadchanamoorthy 63 6 – 385 454
Non-Executive Directors
Steve Horton 27 – 30 100 157
iain Patrick 17 – – 88 105
michael Douglas 17 – – 88 105
330 17 190 776 1,313
2013 £000’s £000’s £000’s £000’s £000’s
Executive Directors
David Lenigas 12 – 240 – 252
Neil ritson 160 – – 192 352
Non-Executive Directors
Steve Horton 12 – 30 34 76
184 – 270 226 680
* these expenses are non-cash theoretical valuations of the rights related to share option awards, vesting in 2014 (see note 1.22).
James thadchanamoorthy was appointed Director on 7 august 2014. David Lenigas resigned as Director and Stephen Horton, iain Patrick & 
michael Douglas were appointed Directors on 27 august 2014. fergus Jenkins was appointed Director on 22 December 2014.
8 Other income
 
2014 
£ 000’s
2013 
£ 000’s
realised gain on equity swap arrangement (see note 16) 408 –
408 – 34 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
9 Loss per share
the calculation of loss per share is based on the loss after taxation divided by the weighted average number of shares in issue during the year:
 2014 2013
Net loss after taxation (£000’s) (6,072) (2,851)
Weighted average number of ordinary shares used in calculating basic loss per share (millions) 2,490 1,961
Weighted average number of ordinary shares used in calculating diluted loss per share (millions) 2,727 2,155
Basic loss per share (expressed in pence) (0.24) (0.15)
Diluted loss per share (expressed in pence) (0.24) (0.15)
as the inclusion of potentially 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.
10 Finance charges
 
2014 
£ 000’s
2013 
£ 000’s
Loan interest payable 281 166
Loan facility fees 1,012 176
1,293 342
Loan facility fees include the fair value of warrants issued in connection with the loans (see note 21).
11 Intangible assets
2014
Group
Intangible 
evaluation 
assets 
£000’s
Decom- 
missioning 
costs 
£000’s
Goodwill 
£000’s
Total 
£000’s
Cost
as at 1 January 2014 10,084 796 3,083 13,963
reclassification
(
*
)
 2,479 (796) – 1,683
additions 1,693 – – 1,693
foreign exchange difference on translation (209) – – (209)
As at 31 December 2014 14,047 – 3,083 17,130
Amortisation and Impairment
as at 1 January 2014 1,828 15 – 1,843
reclassification
(
*
)
  93 (15) – 78
amortisation 631 – – 631
foreign exchange difference on translation (91) – – (91)
As at 31 December 2014 2,461 – – 2,461
Net book value
As at 31 December 2014 11,586 – 3,083 14,669
as at 31 December 2013 8,256 781 3,083 12,120
(
*
)
 During the year, certain assets were reclassified within non-current assets. this is to provide greater clarity on the asset type. LGO Energy plc Report and Accounts 2014 35
11 Intangible assets (continued)
Impairment review
the Directors carried out an impairment review of the intangible assets and goodwill, and determined that a write down is currently not required. 
2013
Group
Intangible 
evaluation 
assets 
£000’s
Decom- 
missioning 
costs 
£000’s
Goodwill 
£000’s
Total 
£000’s
Cost
as at 1 January 2013 9,829 780 3,083 13,692
additions 207 – – 207
expensed costs (99) – – (99)
foreign exchange difference on translation 147 16 – 163
As at 31 December 2013 10,084 796 3,083 13,963
Amortisation and Impairment
as at 1 January 2013 1,763 13 – 1,776
amortisation 31 2 – 33
foreign exchange difference on translation 34 – – 34
As at 31 December 2013 1,828 15 – 1,843
Net book value
As at 31 December 2013 8,256 781 3,083 12,120
as at 31 December 2012 8,066 767 3,083 11,916 36 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
12 Property, plant and equipment
2014 
Group
2014 
Company
 
Oil and gas 
assets  
£ 000’s
Property, 
plant and 
equipment 
£ 000’s
Decom- 
missioning 
costs 
£ 000’s
Group 
Total 
£ 000’s
Property, 
plant and 
equipment 
£ 000’s
Company 
Total 
£ 000’s
Cost or Valuation
as at 1 January 2014 7,010 1,455 – 8,465 9 9
reclassification
(
*
)
  (2,479) – 796 (1,683) – –
additions 8,281 879 150 9,310 1 1
foreign exchange difference on translation 536 69 (41) 564 – –
As at 31 December 2014 13,348 2,403 905 16,656 10 10
Depreciation
as at 1 January 2014 143 573 – 716 9 9
reclassification
(
*
)
  (93) – 15 (78)
Depreciation 1,076 376 28 1,480 – –
foreign exchange difference on translation 49 (4) (2) 43 – –
As at 31 December 2014 1,175 945 41 2,161 9 9
Net book value
As at 31 December 2014 12,173 1,458 864 14,495 1 1
as at 31 December 2013 6,867 882 – 7,749 – –
(
*
)
 During the year, certain assets were reclassified within non-current assets. this is to provide greater clarity on the asset type.
Impairment review
the Directors carried out an impairment review and determined that a write down is currently not required. LGO Energy plc Report and Accounts 2014 37
12 Property, plant and equipment (continued)
2013 
Group
2013 
Company
 
Oil and gas 
assets 
£ 000’s
Property, 
plant and 
equipment 
£ 000’s
Total 
£ 000’s
Property, 
plant and 
equipment 
£ 000’s
Total 
£ 000’s
Cost or Valuation
as at 1 January 2013 6,875 624 7,499 9 9
additions 211 865 1,076 – –
foreign exchange difference on translation (76) (34) (110) – –
As at 31 December 2013 7,010 1,455 8,465 9 9
Depreciation
as at 1 January 2013 71 360 431 4 4
Depreciation 78 213 291 2 2
impairment – 3 3 3 3
foreign exchange difference on translation (6) (3) (9) – –
As at 31 December 2013 143 573 716 9 9
Net book value
As at 31 December 2013 6,867 882 7,749 – –
as at 31 December 2012 6,804 264 7,068 5 5 38 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
13 Investment in subsidiaries
Shares in Group undertaking
2014 
£ 000’s
2013 
£ 000’s
Company
Cost
as at 1 January 1 3,085
additions – –
Disposals (see 1 below) – (3,084)
As at 31 December 1 1
1. on 29 april 2013, there was a group re-organisation relating to the group’s ownership of the trinidadian entities. the group continues to 
retain 100% shareholding of all subsidiaries, and the transfer of ownership of subsidiaries from the parent company to Lgo trinidad Holdings 
Limited was at carrying value (no gain/no loss).
Lgo energy plc, the parent company of the group, holds 100% of the share capital of the following companies:
Company
Country of 
registration Proportion held Nature of business
Direct
Leni gas & oil Holdings Ltd Cyprus 100% Holding Company
Indirect
v ia Leni gas & oil Holdings Ltd
Leni gas & oil investments Ltd Cyprus 100% investment Company
Leni investments Cps Ltd Cyprus 100% investment Company
Leni investments Byron Ltd Cyprus 100% investment Company
Leni investments t rinidad Ltd Cyprus 100% investment Company
v ia Leni investments Cps Ltd
Compañia Petrolifera de Sedano S.L. Spain 100% oil and gas Production and exploration Company
v ia Leni investments Byron Ltd
Leni gas and oil uS inc. united States 100% oil and gas Production and exploration Company
v ia Leni investments t rinidad Ltd
Lgo t rinidad Holdings Limited St Lucia 100% investment Company
v ia Lgo t rinidad Holdings Limited
Leni t rinidad Ltd t rinidad & tobago 100% oil and gas Production and exploration Company
Columbus energy Services Ltd t rinidad & t obago 100% oil and gas Services Company
goudron e&P Ltd t rinidad & t obago 100% oil and gas Production and exploration Company
t rinity-inniss e&P Ltd 
(
*
)
 t rinidad & tobago 100% oil and gas Production and exploration Company
(
*
)
 trinity-inniss e&P Ltd, incorporated on 3 November 2014, is currently a shell company. LGO Energy plc Report and Accounts 2014 39
14 Trade and other receivables
2014 2013
 
Group 
£ 000’s
Company 
£ 000’s
group 
£ 000’s
Company 
£ 000’s
Current trade and other receivables
t rade receivables 1,280 – 841 –
vat receivable 1,373 45 – –
taxation receivable 58 – 99 87
other receivables 9 – 1,227 1,217
Prepayments 83 72 71 69
Total 2,803 117 2,238 1,373
Non-current trade and other receivables
Loans due from subsidiaries – 27,455 – 17,553
Total – 27,455 – 17,553
the loans due from subsidiaries are interest free and have no fixed repayment date. Loans to two of the Company’s non-operating subsidiaries 
were impaired due to irrecoverability.
15 Inventories
2014 2013
 
Group 
£ 000’s
Company 
£ 000’s
group 
£ 000’s
Company 
£ 000’s
inventories – Crude oil 161 – 229 –
inventories – Consumables 142 – 15 –
Total 303 – 244 –
16 Derivative financial instrument
Equity swap arrangement
2014 
£ 000’s
2013 
£ 000’s
Cost
as at 1 January 500 –
Cost of arrangement – 500
Settlement payments received (908) –
realised gain credited to income statement 408 –
As at 31 December – 500
on 21 December 2013 the Company announced that it had entered into an equity swap agreement with Yagm for 131,578,944 subscription 
shares. in return for a payment by the Company to Yagm of £500,000 (“the initial escrowed funds”), twelve monthly settlement payments were 
to be made by Yagm to the Company, or by the Company to Yagm, based on a formula related to the difference between the prevailing market 
price of the Company’s ordinary shares in any month and a ‘benchmark price’ that is 10% above the subscription price. thus the funds receivable 
by the Company in respect of the Swap Shares are dependent on the future price performance of the Company’s ordinary shares.
By 31 December 2014 the equity swap agreement had been terminated and an agreed final settlement payment was received by the Company. 
the net gain on the equity swap arrangement was £408,000. 40 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
17 Trade and other payables
2014 2013
 
Group 
£ 000’s
Company 
£ 000’s
group 
£ 000’s
Company 
£ 000’s
Current trade and other payables
t rade payables 4,013 290 959 262
Deferred consideration 737 737 120 120
accruals 666 260 1,466 1,312
Total 5,416 1,287 2,545 1,694
 
Non-current trade and other payables
Deferred consideration 1,233 1,233 1,850 1,850
Deferred taxation 1,020 – – –
Total 2,253 1,233 1,850 1,850
18 Borrowings
2014 2013
 
Group 
£ 000’s
Company 
£ 000’s
group 
£ 000’s
Company 
£ 000’s
Loans – other (unsecured) 
1
– – 1,287 1,287
Loans – other (unsecured) 
2
– – 112 112
Loans – other (unsecured) 
3
– – 653 653
Loans – other (unsecured) 
4
2,248 2,248 – –
Loans – other (unsecured) 
5
644 644 – –
interest payable on borrowings 23 23 225 225
2,915 2,915 2,277 2,277
1. the loans due to other parties carry an interest charge of 10% and a repayment date of the 31 December 2014. the carrying amounts of 
short-term borrowings approximate their fair value, and are all denominated in pounds sterling.
2.  the loans due to other parties carry an interest charge of 8% and a repayment date of the 30 June 2014. the carrying amounts of short-term 
borrowings approximate their fair value, and are all denominated in uS Dollars.
3. the loans due to other parties carry an interest charge of 8% and a repayment date of the 31 December 2014. the carrying amounts of short-
term borrowings approximate their fair value, and are all denominated in uS Dollars.
4. the loans due to other parties carry an interest charge of 9% and repayment dates up to 31 December 2015. the carrying amounts of short-
term borrowings approximate their fair value, and are all denominated in uS Dollars.
5. the loans due to other parties carry an interest charge of 10% and a repayment date of 1 January 2016. the carrying amounts of short-term 
borrowings approximate their fair value, and are all denominated in uS Dollars.
By 5th march 2015, all of the above outstanding borrowings were repaid in full. LGO Energy plc Report and Accounts 2014 41
19 Provisions
2014 2013
Provision for decommissioning costs
Group 
£ 000’s
Company 
£ 000’s
group 
£ 000’s
Company 
£ 000’s
at 1 January 796 – 780 –
additions 150
foreign exchange difference on translation (40) – 16 –
At 31 December 906 – 796 –
the provisions relate to the estimated costs of the removal of the Spanish and trinidadian production facilities and, site restoration at the end of 
the production lives of the facilities.
20 Share capital
Called up, allotted, issued and fully paid 
Number of 
shares
Nominal 
value 
£ 000’s
As at 31 December 2012 1,877,747,601 939
21 June 2013 cash at 0.8p per share 162,500,000 81
23 December 2013 cash at 0.76p per share 131,578,944 66
23 December 2013 cash at 0.76p per share 78,947,369 39
As at 31 December 2013 2,250,773,914 1,125
2 april 2014 consideration at 0.88p per share 14,218,605 7
25 april 2014 cash at 0.95p per share 144,736,842 72
17 June 2014 cash at 2.00p per share 1,000,000 1
7 July 2014 cash at average of 1.17p per share 54,265,989 27
7 July 2014 cash at 2.00p per share 3,200,000 2
17 July 2014 cash at 3.50p per share 200,000,000 100
30 october 2014 cash at 4.75p per share 48,418,167 24
27 November 2014 consideration at 4.05p per share 6,227,329 3
1 December 2014 consideration at 0.66p per share 6,000,000 3
As at 31 December 2014 2,728,840,846 1,364
During the year 478 million shares were issued (2013: 373 million).
Total share options in issue
During the year 77.5 million options were issued (2013: 204 million). 42 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
20 Share capital (continued)
as at 31 December 2014 the options in issue were:
Exercise price Vesting criteria Expiry date Options in issue
1p – 31 Dec 2020 56,000,000 
1p 500 bopd 31 Dec 2020 49,333,333 
1p 600 bopd 31 Dec 2020 49,333,333 
1p 700 bopd 31 Dec 2020 49,333,334 
4p 1250 bopd 31 Dec 2020 16,250,000
4p 1500 bopd 31 Dec 2020 45,000,000
4p 1750 bopd 31 Dec 2020 16,250,000
As at 31 December 2014 281,500,000
No options lapsed during the year (2013: 28.8 million), no options were cancelled in the year (2013: 55 million), and no options were exercised 
during the year (2013: nil).
Total warrants in issue
During the year, 36.3 million warrants were issued (2013: 28.1 million).
as at 31 December 2014 the warrants in issue were:
Exercise price Expiry date Warrants in issue
4.5p 25 Jun 2017 4,081,802
6.2p 15 oct 2017 2,158,692
5.1p 22 Dec 2017 3,931,838
As at 31 December 2014 10,172,332
No warrants lapsed during the year (2013: 103.7 million), no warrants were cancelled during the year (2013: nil), and 58.5 million warrants were 
exercised during the year (2013: nil). LGO Energy plc Report and Accounts 2014 43
21 Share based payments
Share options
the Company has established an employee share option plan to enable the issue of options as part of remuneration of key management 
personnel and Directors to enable the purchase of shares in the entity. options were granted under the plan for no consideration. options were 
granted for between a 6 and 7.5 year period. there are vesting conditions associated with the options. options granted under the plan carry no 
dividend or voting rights.
under ifrS 2 ‘Share Based Payments’, the Company determines the fair value of options issued to Directors and employees as remuneration and 
recognises the amount as an expense in the income statement with a corresponding increase in equity.
as at 31 December 2014 the unexpired share options were:
Name Date granted Vesting date Number
Exercise 
price 
(pence) Expiry date
Share 
price 
at grant 
date 
(pence)
Fair 
value 
after 
discount 
(pence)
Neil ritson 1 Jul 2013 1 Jul 2013 25,000,000 1 31 Dec 2020 0.73 0.51
Neil ritson 1 Jul 2013 31 aug 2014 25,000,000 1 31 Dec 2020 0.73 0.20
Neil ritson 1 Jul 2013 31 aug 2014 25,000,000 1 31 Dec 2020 0.73 0.20
Neil ritson 1 Jul 2013 30 Sep 2014 25,000,000 1 31 Dec 2020 0.73 0.20
Steve Horton 1 Jul 2013 1 Jul 2013 5,000,000 1 31 Dec 2020 0.73 0.51
Steve Horton 1 Jul 2013 31 aug 2014 3,333,333 1 31 Dec 2020 0.73 0.20
Steve Horton 1 Jul 2013 31 aug 2014 3,333,333 1 31 Dec 2020 0.73 0.20
Steve Horton 1 Jul 2013 30 Sep 2014 3,333,334 1 31 Dec 2020 0.73 0.20
fergus Jenkins 1 Jul 2013 1 Jul 2013 10,000,000 1 31 Dec 2020 0.73 0.51
fergus Jenkins 1 Jul 2013 31 aug 2014 7,500,000 1 31 Dec 2020 0.73 0.20
fergus Jenkins 1 Jul 2013 31 aug 2014 7,500,000 1 31 Dec 2020 0.73 0.20
fergus Jenkins 1 Jul 2013 30 Sep 2014 7,500,000 1 31 Dec 2020 0.73 0.20
Staff 1 Jul 2013 1 Jul 2013 10,000,000 1 31 Dec 2020 0.73 0.51
Staff 1 Jul 2013 31 aug 2014 7,500,000 1 31 Dec 2020 0.73 0.20
Staff 1 Jul 2013 31 aug 2014 7,500,000 1 31 Dec 2020 0.73 0.20
Staff 1 Jul 2013 30 Sep 2014 7,500,000 1 31 Dec 2020 0.73 0.20
Consultants 1 Jul 2013 1 Jul 2013 6,000,000 1 31 Dec 2020 0.73 0.51
Consultants 1 Jul 2013 31 aug 2014 6,000,000 1 31 Dec 2020 0.73 0.20
Consultants 1 Jul 2013 31 aug 2014 6,000,000 1 31 Dec 2020 0.73 0.20
Consultants 1 Jul 2013 30 Sep 2014 6,000,000 1 31 Dec 2020 0.73 0.20
Steve Horton 1 Dec 2014 31 Dec 2014 15,000,000 4 31 Dec 2020 3.675 0.59
iain Patrick 1 Dec 2014 31 Dec 2014 15,000,000 4 31 Dec 2020 3.675 0.59
michael Douglas 1 Dec 2014 31 Dec 2014 15,000,000 4 31 Dec 2020 3.675 0.59
James thadchanamoorthy 1 Dec 2014 31 Dec 2014 16,250,000 4 31 Dec 2020 3.675 1.79
James thadchanamoorthy 1 Dec 2014 31 Dec 2014 16,250,000 4 31 Dec 2020 3.675 0.59
As at 31 December 2014 281,500,000
the fair value of the options vested during the year was £0.82 million (2013: £0.41 million). the assessed fair value at grant date is determined 
using the Black-Scholes model which, takes into account the exercise price, the term of the option, the share price at grant date, the expected 
price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. the fair value is then 
discounted for the probability of the options actually vesting. 44 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
21 Share based payments (continued)
the following table lists the inputs to the model used in the year ended 31 December 2014:
 1 December 2014
Dividend yield (%) –
expected price volatility (%) 108%
risk-free interest rate (%) 1.3%
Share price at grant date (pence) 3.675p
the expected volatility reflects the assumption that the historical volatility is indicative of future trends which, may not necessarily be the actual 
outcome.
Warrants
as at 31 December 2014 the unexpired warrants were:
Date granted Vesting date Number
Exercise 
price 
(pence) Expiry date
Share price 
at grant 
date 
(pence)
Fair value 
(pence)
24 Jun 2014 24 Jun 2014 4,081,802 4.5 25 Jun 2017 3.9 0.63
15 oct 2014 15 oct 2014 2,158,692 6.2 15 oct 2017 3.7 1.01
22 Dec 2014 22 Dec 2014 3,931,838 5.1 22 Dec 2017 4.4 0.33
As at 31 December 2014 10,172,332
the fair value of the warrants vested during the year was £0.10 million (2013: £0.04 million). the fair value of the warrants exercised during the year 
was £0.08m (2013: nil) and has been transferred through equity from the share based payments reserve to retained earnings. the assessed fair 
value at grant date was determined based on the estimated cash equivalent value of the warrants. the warrants were issued in connection with 
the loans and thus have been recognised within finance charges (see note 10). LGO Energy plc Report and Accounts 2014 45
22 Financial instruments 
the group uses financial instruments comprising cash, and debtors/creditors that arise from its operations. the group holds cash as a liquid 
resource to fund the obligations of the group. the group’s cash balances are held in various currencies. the group’s strategy for managing 
cash is to maximise interest income whilst ensuring its availability to match the profile of the group’s expenditure. this is achieved by regular 
monitoring of interest rates and monthly review of expenditure forecasts. 
the Company has a policy of not hedging foreign exchange and therefore takes market rates in respect of currency risk; however it does review its 
currency exposures on an ad hoc basis. Currency exposures relating to monetary assets held by foreign operations are included within the foreign 
exchange reserve in the group Balance Sheet.
the group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.
to date the group has relied upon equity funding and short-term debt to finance operations. the Directors are confident that adequate cash 
resources exist to finance operations to commercial exploitation but controls over expenditure are carefully managed.
the net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements. the currency and interest 
rate profile of the financial assets is as follows:
Cash and short term deposits
2014 
£ 000’s
2013 
£ 000’s
Sterling 237 4
euros 196 180
uS Dollars 551 99
t rinidad Dollars 599 58
1,583 341
the financial assets comprise cash balances in interest earning bank accounts at call. the financial assets in Sterling currently earn interest at the 
base rate set by the Bank of england less 0.15%
Oil Price Risk
the group is exposed to commodity price risk regarding its sales of crude oil which is an internationally traded commodity. the group sales prices 
are based off of two benchmarks, West texas intermediate (Wti) for sales in trinidad and Brent Crude (Brent) for sales in Spain.
the high/lows of both benchmarks are shown below:
Spot oil prices for 2014
 Low Average High
Wti 53.45 93.13 107.95
Brent 55.27 98.86 115.19
the below shows the group’s 2014 revenue sensitivity to an average price that is 30% higher and 30% lower than the average price for that year.
Oil price sensitivity
Decrease Current Increase
 30% 20% 10% 10% 20% 30%
t rinidad 5,324 6,085 6,845 7,605 8,366 9,127 9,887
Spain 1,124 1,284 1,445 1,605 1,766 1,927 2,087
Total 6,448 7,369 8,290 9,210 10,132 11,054 11,974 46 LGO Energy plc Report and Accounts 2014
Notes to the Financial Statements
continued
22 Financial instruments (continued)
Foreign currency risk
the following table details the group’s sensitivity to a 10% increase and decrease in the Pound Sterling against the relevant foreign currencies of 
euro, uS Dollar, and trinidadian Dollar. 10% represents management’s assessment of the reasonably possible change in foreign exchange rates.
the sensitivity analysis includes only outstanding foreign currency denominated investments and other financial assets and liabilities and adjusts 
their translation at the year-end for a 10% change in foreign currency rates. the following table sets out the potential exposure, where the 10% 
increase or decrease refers to a strengthening or weakening of the Pound Sterling:
Profit or loss sensitivity Equity sensitivity
 
10% increase 
£ 000’s
10% decrease 
£ 000’s
10% increase 
£ 000’s
10% decrease 
£ 000’s
euro 122 (122) (115) 115
uS Dollar 1 (1) (858) 858
t rinidad Dollar 188 (188) (392) 392
311 (311) (1,365) 1,365
rates of exchange to £1 used in the financial statements were as follows:
 
As at 
31 December 
2014
Average for 
the relevant 
consolidated 
year to 
31 December 
2014
As at 
31 December 
2013
Average for 
the relevant 
consolidated 
year to 
31 December 
2013
euro 1.278 1.240 1.198 1.178
uS Dollar 1.553 1.646 1.649 1.564
t rinidad Dollar 9.725 10.338 10.611 10.020
23 Commitments and contingencies
as at 31 December 2014, the Company had the following material commitments:
ongoing exploration expenditure is required to maintain title to the group’s mineral exploration permits. No provision has been made in the 
financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the group.
as announced in august 2013, as part of the licence extension and royalty reduction agreement, the group has agreed to a new work program of 
10 new wells in the next 10 years. four by year 5, four by year 7 and two by year 10. eight wells were drilled in 2014.
additionally the group has committed to conduct an airborne gravity survey by year 5 and drill one exploration well by year 7. the survey was 
completed in early 2015.
on 27 November 2014, the Company announced that $2.1 million will be payable to Beach oilfield Limited subject to the effective transfer of 
deep petroleum rights. at the date of this report, the amount payable was $1.9 million. LGO Energy plc Report and Accounts 2014 47
24 Related party transactions
transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed 
in this note. transactions between other related parties are discussed below. 
remuneration of Key management Personnel
the remuneration of the Directors of the Company are set out below in aggregate for each of the categories specified in iaS24 related party 
Disclosures.
 
2014 
£ 000’s
2013 
£ 000’s
Short-term employee benefits 537 556
Share-based payments 776 366
1,313 922
25 Events after the reporting period
in Q1 2015, the group restructured its balance sheet to facilitate the drawdown of a senior debt facility with BNP Paribas. 
on 14 January 2015, the Company raised £1.58 million before expenses by way of a placing of 52.5 million new ordinary Shares, at a price of 3.0 
pence per share.
on 23 february 2015, the Company raised £2.4 million before expenses by way of a placing of 92,062,500 new ordinary Shares, at a price of 2.5 
pence per share. 
on the 23 february 2015, goudron e&P Limited (gePL), a company wholly owned by Lgo energy plc, signed a uS$25 million pre-paid oil swap 
facility with BNP Paribas. this facility was for the funding of the 30 well drilling campaign in gePL. 
on 24 february 2015, the Company raised £4.32 million before expenses by way of a placing of 172,760,000 new ordinary Shares, at a price of 
2.5 pence per share.
on 05 march 2015 the Company paid down the outstanding loan balance as at that date, of £2.3 million with Yorkville associates global masters 
and terminated the facility. 
on the 17 march 2015, gePL drew an initial uS$11.78 million from the facility to fund the planned 7 well development drilling program for 2015.
26 Profit and loss account of the parent company
as permitted by section 408 of the Companies act 2006, the profit and loss account of the parent company has not been separately presented in 
these accounts. the parent company loss for the year was £3.1 million (2012: £2.3 million). LGO Energy plc Report and Accounts 2014
HigHLigHtS 1
CHairmaN’S StatemeNt 2
CHief exeCutive’S revieW 4
fiNaNCe revieW 9
BoarD of DireCtorS 10
DireCtorS’ rePort 12
CorPorate goverNaNCe StatemeNt 14
iNDePeNDeNt auDitorS rePort to tHe 
SHareHoLDerS of Lgo eNergY PLC 17
 fiNaNCiaL StatemeNtS 18
  grouP StatemeNt of ComPreHeNSive iNCome 
for tHe Year eNDeD 31 DeCemBer 2014 18
  grouP StatemeNt of fiNaNCiaL PoSitioN 
aS at 31 DeCemBer 2014 19
  ComPaNY StatemeNt of fiNaNCiaL PoSitioN 
aS at 31 DeCemBer 2014 20
  grouP StatemeNt of CaSH fLoWS 
for tHe Year eNDeD 31 DeCemBer 2014 21
  ComPaNY StatemeNt of CaSH fLoWS 
for tHe  Year eNDeD 31 DeCemBer 2014 22
  StatemeNt of CHaNgeS iN eQuitY 
for tHe Year eNDeD 31 DeCemBer 2014 23
  NoteS to tHe fiNaNCiaL StatemeNtS 
for tHe Year eNDeD 31 DeCemBer 2014 25
 CorPorate iNformatioN iBC
Lgo energy plc (“Lgo” or “the Company”) is a company incorporated in england and Wales which is quoted on aim with subsidiaries operating 
in trinidad and Spain. its principal activities are the production and exploration of oil and gas.
LGO Energy plc Report and Accounts 2014
registered Number 05901339
Directors Steve Horton – Chairman
Neil ritson – Chief executive officer
fergus Jenkins – Chief operations officer
James thadchanamoorthy – Chief financial officer
michael Douglas – Non-executive Director
iain Patrick – Non-executive Director
Company Secretary James thadchanamoorthy
registered office Suite 4B, Princes House 
38 Jermyn Street 
London SW1Y 6DN
united Kingdom
tel: +44 (0) 20 3794 9230
fax: +44 (0) 20 3794 9231
email: info@lgo-energy.com
Website: www.lgo-energy.com
auditors Chapman Davis LLP
2 Chapel Court
London Se1 1HH
united Kingdom
Solicitors Kerman & Co LLP
200 the Strand
London WC2r 0er
united Kingdom
Nominated advisor and Joint Broker Beaumont Cornish Limited
2nd floor, Bowman House 
29 Wilson Street 
London eC2m 2SJ
united Kingdom
Joint Broker firstenergy Capital LLP 
85 London Wall 
London eC2m 7aD
united Kingdom
Share registrars Share registrars Limited
Suite e, first floor
9 Lion and Lamb Yard 
farnham, Surrey gu9 7LL
united Kingdom
Principal Bankers HSBC Bank plc
196 oxford Street
London, W1D 1Nt
united Kingdom
Public relations Bell Pottinger Limited
5th floor, Holborn gate
London WC1v 7QB
united Kingdom
Contents Corporate Information Delivering Growth
Through Acquisition of Proven Reserves 
& Enhancement of Producing Assets
ANNUAL REPORT AND
ACCOUNTS 2014
Company Number 05901339
Registered office: 
Suite 4B, Princes House 
38 Jermyn Street 
London SW1Y 6DN
LGO ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2014