Trinidad Energy Conference Update on Trinidad Activities 27th January 2015 Neil Ritson 1 Company Profile London HQ Spain Trinidad Worldwide Staff Net Production 2P Reserves Market Cap - 55 over 2,000 bopd 7 mmbbls US$120 million 2 Board of Directors Chairman Steve Horton Chief Executive Officer Neil Ritson Chief Operating Officer Fergus Jenkins Finance Director James Thadchanamoorthy Non-Executive Director Iain Patrick Non-Executive Director Michael Douglas Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy industry including 27 years with BP plc where he held executive roles including worldwide Director of Drilling. He co-founded Silverstone Energy Limited in 2005. Has a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. before founding the Vanguard Energy Group where he was Chairman and CEO. Is a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He has over 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc. Has a degree in Chemistry and is a qualified accountant. He has 18 years’ experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions. Over 150 years Is a lawyer with over 30 years’ experience in the international oil and gas industry. He joined Monument Oil and Gas plc in 1988 where he was Commercial director until its sale in 1999. Subsequently Mr. Patrick was Commercial Director of Gulf Keystone Petroleum (UK) Limited. Mr. Douglas has worked in the business consultancy sector for 40 years. He was a Managing Partner for PA Consulting and in 1993 Mr. Douglas founded the Quo Group, a consultancy specializing in behavioral change, performance and talent management, and executive coaching. 3 Trinidad Management Team Country Manager Alex Almandoz Highly experienced drilling and workover operator. Managing Director od Altech Services since 1994, operating 5 workover rigs with capability to 8,000 feet. Perviously Operations Manager for Terra Mar. Worked with Halliburton on coiled tubing operations from 1987 to 1991. HSE Manager Zameer Rahaman Experienced HSE professional with over 25 years working in the HSE sector of the energy industry previously worked with Primera, The Offshore Drilling Company and Bechtel on land and marine operations in Trinidad. Zameer heads a team of three HSE professionals. Senior Petroleum Rabindra (“Robin”) Harricharan Has a BSc in Petroleum Engineering from UWI and has worked for over 24 years in the oil sector Engineer with Primera, Barbados National Oil Company and Petrotrin. Extensive experience with artificial lift, stimulation, coiled tubing and EOR. Robin leads the petroleum engineering team. Drilling Engineer Vishan Beharry Non-Executive Director (LTL) Winston Boodoo Non-Executive Director (GEPL) Tim Gabriel Holds a MSc in Petroleum Engineering and a BSc in Physics from UWI. More than 15 years experience in the drilling sector working with Sadhna Petroleum, CoPetrol, Baker Hughes Inteq and WASA. Vishan leads the well engineering team. Over 150 years A geologist with more than 37 years of varied international experience gained working for Total, Elf, Occidental Petroleum and Petrotrin. Holds a BSc and MSc in geology from the University of Wyoming. Has over 40 years of hydrocarbon geoscience experience working for a wide range of Trinidad focused companies including Primera, Petrotrin, Trinyopex (where he was Chief Geologist) and Texaco. In recent years has worked as a consultant for clients including Niko Resources. 4 LGO’s Trinidad Assets Three areas in the prime hydrocarbon play zone: • Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and over 60 mmbbls of contingent resources associated with a future water flood. Active production growth from a 30 well infill development drilling programme with eight wells drilled • Icacos Field in the Cedros Peninsula (50%, non-operator), producing ~35 bopd from three wells. Future opportunities for infill and redevelopment CEDROS LEASES GOUDRON IPSC • Over 7,500 acres of largely unexplored 100% owned private oil leases in the Cedros and in rights held in partnership with Beach Oilfield Limited 5 Goudron Field Overview • Goudron is located in Guayaguayare and produces light oil (averaging at least 38 oAPI) • Discovered in 1927 the field has a long history, but only limited production with less than 5 mmbbls produced • 154 wells were drilled before 1981, last previous wells GOU-1/2 in 1991/2; LGO started drilling in April 2014 • LGO acquired the IPSC in October 2012 and has since then: • • • • Restored the infrastructure Conducted over 70 well reactivations Carried out several recompletions Placed all new wells on stream • Production has already increased from 30 bopd to over 2,000 bopd and is set to exceed 3,000 bopd in 2015 Goudron well GY-257 Reactivated 2012 6 Phase 1: Infrastructure • Located in the remote primary forests of the Trinity Hills Wildlife Sanctuary • Limited work undertaken over last 30 years • LGO has: • Increased sales tank capacity 8-fold • Refurbished previous tank facilities • Repaired bridges and roads • Installed a new communications • Extended and restored electricity • Constructed water treatment • Commissioned camp facilities with: • offices • workshops • stores • hot-work area • crew rest area • accommodation SITE ROADS Sales Tank Battery #34 Workshops 7 Phase 2: Infill Development Drilling Production at Gros Morne level Well 64 • • Infill locations selected to have low risk of finding oil pay based on offset wells Well 188 Well 664 Where upswept oil is predicted to be present by comparison with nearby wells 8 Drilling Status Today Drilling to date: • Eight new deep wells drilled in 2014, total 28,754 feet drilled • Using vastly improved drilling, logging and completion techniques • Well GY-670 had an open hole flow rate of 6,000 bopd and has been completed on a 12/32” choke at a rate of 1,000 bopd • Reported to be the best onshore well in Trinidad for over 20 years Latest well results: • Well GY-669 was perforated on Friday (23 Jan) • Only 30 feet of the 248 foot C-sand pay was shot • Flowing on a restricted 10/32” choke at 445 bopd Drilling Pad-3 A quarter of the planned development wells have led to over 2,000 bopd of new production 9 Primary Production Forecast Primary Production Forecast (P90) bopd 3,500 Likely to be increased 3,000 2,500 2,000 1,500 1,000 500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Base production 10 Phase 3: Water Flood • Local analogue at Beach-Marcelle Field • Wealth of local experience in Trinidad • Over 60 mmbbls of 3C resources • • • • Existing study for 4,000 bopd capacity New scoping studies starting now Collected critical data during recent drilling phase LR Senergy are leading the technical work 11 EOR Production Forecast PROVISIONAL Primary and Secondary Production Forecast (P90) Primary Production Forecast bopd bopd 8,000 3,500 7,000 3,000 6,000 2,500 5,000 2,000 4,000 1,500 3,000 1,000 2,000 500 1,000 - 2014 2015 2016 2017 2014 2015 2016 2017 2018 2018 2019 2019 2020 2021 2022 2020 production 2021 Base Base production 2022 2023 2023 2024 2024 2025 2025 2026 2026 2027 2027 2028 2028 Water Flood 12 Plans in 2015 • Build two more drilling pads (#4 and #5) • Complete the ongoing LR Senergy primary development studies • Prepare a new reserves report to reflect the results obtained to date • Install a Lease Area Custody Transfer (LACT) meter and an additional 5,000 barrel sales tank • Drill and complete at least 7 more wells • Continue drilling wells 16 to 30 • Initiate FEED engineering for water flood 13 Cedros Peninsula 14 What is special about Cedros? Largely unexplored at depth Installing new well tanks Accessible terrain Re-migrated light oil at shallow depth One deep well (FRM-1) found oil Parallel trend to the Soldado field complex Oil is already known in proven reservoirs Block of oil impregnated Herrera Sandstone from Galpha Point 15 Exploring the Cedros • In addition to Icacos (50%), LGO holds 100% rights to over 7,500 acres of underexplored leases Installing new well tanks • Evaluating all existing seismic data, including 3D, and all wells • Acquired a micro-seepage soil survey in 2014, results have just arrived • Flying a high resolution gravity and magnetics survey now • Plan to drill a deep well in 2016 Rigs & Production facilities exploiting deep potential offshore as seen from Cedros coastline 16 Airborne FTG Survey Installing new well tanks (arkex.co.uk) • Survey over 5,700 km sq. being flown by ARKeX Limited • First use of Full Tensor Gravity Gradiometry in Trinidad • Great success with the technique in other areas, such as in East Africa • Survey will take a further 3-5 weeks to fly and the initial results will be ready in late March ARKeX Twin-Otter at Piarco International Airport MOEEA, Petrotrin and LGO visit • MOEEA multi-client survey; current participants Petrotrin and LGO 17 HSE and Community • LGO has operated successfully in a Spanish National Park for over 6 years Installing new well tanks • Goudron is located on the edge of the Trinity Hills Wildlife Reserve • Operations conducted to the highest international standards of HSE • Goudron is in the late stages of the process of STOW certification • All LGO staff are local employees where they work; UK, Spain or Trinidad • Increasing our engagement with the local community 18 Conclusions 19 Conclusions LGO’s Trinidad-focused strategy is paying off. Corporate expertise has been effectively blended with local skills Despite the current depressed oil price LGO’s low cost of operation makes production profitable LGO will maintain its core program at Goudron in 2015; including at least 7 new deep wells and further infrastructure Medium term exploration potential exists in Cedros and LGO has championed a new Trinidad-wide FTG survey Independent producers can add considerable value 20 Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets London (AIM): LGO www.lgo-energy.com 21