LGO Energy plc reported group production results for the third quarter of 2015. The group production in the third-quarter is reported as 896 bopd, 6% lower than second-quarter.

The company has also provided an update on its operations concerning the loss of well GY-678 at the Goudron Field in Trinidad. The loss of well GY-678, the downhole equipment it contained and the anticipated production from that well, has significant cost implications for the company. Delays are occurring in settlement of the remaining capital costs of the recent drilling program, in particular well GY-678, amounting to approximately USD 4 million, for which the company requires BNP Paribas approval to release specific funds previously drawn-down. Nevertheless, in line with the terms of the banking facility, payments under the pre-paid swap arrangements with the Bank continue to be made as initially planned. The company has now reviewed a wide range of options to bridge the funding gap that this loss has created with regards existing drilling creditors as well as future capex and LGO has decided to appoint Wellford Capital Markets, LLC ("Wellford") and Height Securities, LLC ("Height") to jointly advise on strategic investments in the business. Wellford and Height will be retained for an initial 3 month period, commencing immediately, and will work with LGO's management to define options for longer term sustainability, including sourcing strategic investors and the possible refinancing of the existing Bank loan. While the work commissioned by LGO with Wellford and Height is progressing, operations at the Company's Goudron Field will continue with operating costs continuing to be met from production revenue, funds held by LGO and those being released by the Bank. The net oil pay observed in GY-678 was exceptionally thick. No decision has yet been made on the optimum way to access the pay interval, whether that is re-entering and sidetracking or re-drilling the GY-678 well to reach the C-sand net oil pay zone previously drilled and logged in the well. The Group is continuing with the planning work required for a program of activity in the shallow Goudron Sandstone where ubiquitous oil pay has been observed in all 15 wells drilled in the last two years. This work will be conducted using the funds recently raised for that purpose, though the Company anticipates that, until the strategic funding exercise is complete, this work will concentrate on lower cost work-overs and recompletions in the Goudron Sandstone rather than the drilling of new wells. Recent performance from the Company's Spanish subsidiary, CPS, has been encouraging with September average production of 186 barrels of oil per day ("bopd"). Additional well cleanout work conducted over the summer months has resulted in a substantial increase in production from a number of wells, notably well Ayo-37. Revenues from Spain have also been strengthened through the implementation, in September, of a new sales contract with Saint-Gobain which has sliding scale discounts that bring the realized price closer to Brent marker prices at lower oil prices. Production from the company's interests in the South West Peninsula of Trinidad remain stable at previously announced levels.

The company announced that the 2015 fourth quarter production will be lower than previously forecast due to the loss of GY-678 production, continuing depletion in the field and the slowing of work on the Goudron Sandstone program.