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How about adding loggly related configuration in App.config file like below.
I am using it for hosting WCF service within Window Service and it works fine for me.

   <configSections>
        <section name="log4net" type="log4net.Config.Log4NetConfigurationSectionHandler, log4net" />
  </configSections>

      <log4net>
        <root>
          <level value="ALL" />
          <appender-ref ref="LogglyAppender" />
        </root>
        <appender name="LogglyAppender" type="log4net.loggly.LogglyAppender, log4net-loggly">
          <rootUrl value="https://logs-01.loggly.com/" />
          <inputKey value="abcdefgh" />
          <tag value="log4net" />
        </appender>
      </log4net>