LNG Energy Ltd.

LNG Energy Ltd.

March 26, 2010 14:56 ET

LNG Consolidates Its Interest in Oil and Gas Leases in Poland and the United States

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 26, 2010) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce that it has entered into an agreement with Omag Beteiligungen AG ("Omag") to consolidate its position in Poland and the USA by acquiring all of the oustanding shares of Kunagu Real Estate S.A., a private company which holds: (a) the remaining 40% interest in the Kaynes Capital S.a.r.l. ("Kaynes") which in turn holds the 20% net interest in BNK Petroleum Inc.'s ("BNK") shale gas exploration project in Poland; and (b) the remaining 40% interest in BWB Exploration, LLC ("BWB") which in turn holds certain oil and gas leases in the Ardmore Basin in Oklahoma and the Black Warrior Basin in Alabama. The aggregate purchase price of Cdn $8,960,000 will be satisfied by the issuance of 32,000,000 common shares of LNG to Omag. The acquisition is subject to a number of conditions, including the approval of the TSX Venture Exchange.

Kaynes holds a 20% interest in BNK's shale gas exploration project in Poland. The project consists of three concessions, Starogard, Slupsk and Slawno located in Northern Poland and total approximately 730,000 acres. Upon completion of the acquisition, LNG's net interest in the project will increase from 12% to 20%. The remaining 80% is held by Sorgenia E&P S.p.A. (27%), Rohol-Aufsuchungs Aktiengesellschaft (26%) and BKX International Holdings Inc. (27%). License commitments will require the drilling and testing of one exploration well per concession before the end of June 2011. Both ConocoPhillips and Talisman Energy Inc. have recently announced farm-ins transactions on adjacent licenses held by Lane Energy Poland Sp. z o.o. and San Leon Energy Plc respectively.

BWB holds approximately 3,200 acres of oil and gas leases in the producing West Tishomingo Field development in Carter County, Oklahoma and approximately 65,000 acres of oil and gas leases in the Black Warrior Basin, Alabama. The September 30, 2009 Year End Reserve Report, conforming to NI 51-101, attributed Proved and Proved+Probable reserves of 7,900MBOE and 19,022MBOE with an after tax net present value of US$17.7 million and US$35.7 million respectively. Upon completion of the acquisition BWB will be an indirectly 100% wholly owned subsidiary of LNG. BWB is party to an exploration agreement with BNK under which BNK can earn up to a 50% working interest in a portion or all of the Black Warrior acreage by drilling a series of test wells on identified prospects. BNK is committed to drill three wells, the first of which was drilled and cased in October 2009. Completion operations have commenced on the first test well and has proven the existence of natural gas in this portion of the Black Warrior Basin. Operations have resumed to determine the discovered resource's commercial viability for future development. The current exploration program is projected to have BNK pay 100% of the costs in an eight well test program up to US$10million.

"We are pleased to be able to consolidate the interest in these Polish and USA leases into LNG. Increasing our position in the Polish shale gas play to a net 146,000 acres and taking full ownership in the USA allows LNG considerable upside and flexibility going forward," commented Dave Afseth, President of LNG. "We will now have a material position to be able to participate meaningfully in the rapidly emerging Polish shale gas arena and in the developing production of the West Tishomingo field."

Dave Afseth, President

Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements". Such forward-looking statements, including but not limited to those with respect to the closing of the acquisition of the shares of Kunagu Real Estate S.A. and uncertainties and other factors which may cause the actual results, performance or achievements of LNG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although LNG has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Shares Outstanding: 144,320,965

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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