LNG Energy Ltd.

LNG Energy Ltd.

April 26, 2012 09:15 ET

LNG Energy Announces Slawno, Slupsk and Starogard Concession Resources in the Baltic Basin, Poland, Operations Update and Options Grant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2012) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce its estimated prospective and contingent resource volumes for the Slawno, Slupsk, and Starogard concessions in Poland, in which LNG has an indirect 20.18% interest through its ownership of Saponis Investments Sp z.o.o ("Saponis"). The concessions are located in the onshore region of the northwest sector of the Baltic Basin of Poland.

The results of the third party study completed by RPS Energy Consultants Limited ("RPS") and were prepared in accordance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and indicate in-place volumes for each concession as of September 30, 2011 (representing LNG's 20.18% working interest):

Prospective Resources Low
Slawno 1,651 1,919 2,211
Slupsk 4,370 5,075 5,844
Starogard 3,145 4,205 5,434
Total Resources 9,166 11,199 13,489

The summary of the recoverable gas volumes for contingent and prospective resources as of September 30, 2011 (representing LNG's 20.18% working interest):

Contingent Resources 1C
Slupsk (Lebork S‐1) 57 94 146
Prospective Resources Low
Best Estimate
Slawno 130 217 337
Slupsk 367 613 947
Starogard 413 792 1,376
Total Prospective Resources 910 1,622 2,660

The resource volumes are classified according to the Petroleum Resources and Management System (PRMS, 2007). Prospective resources are those quantities of petroleum estimated to be potentially recoverable from undiscovered accumulations by application of future development projects. Contingent resources are those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

The uncertainty in the resource estimates was addresses by using Monte Carlo modeling methods and is expressed in the tables above as low/best/high estimates for prospective resources and 1C/2C/3C for contingent resources. Low/best/high and 1C/2C/3C are the P90, P50 and P10 values from the Monte Carlo model results.

One new well has been drilled on each concession (2010-2011) being the Wytowno S-1, Lebork S-1 and Starogard S-1 on the Slawno, Slupsk and Starogard concessions respectively, which provided core and log data specifically for the assessment of the shale gas content. The prospectivity of the subject properties is based on the occurrence of gas shale intervals (Silurian, Ordovician and Cambrian age) analogous to those that have been extensively developed in the U.S. and Canada. The analyses documented in the third party report by RPS were based most significantly on the results of the drilling of three new wells, one on each of the Saponis blocks. The most significant information reflecting storage capacity has come from the core analysis results from the Lebork S-1 well drilled on the Slupsk license.


The recovery has also begun of the long term pressure test gauges that were installed in October 2011 on its Lebork S-1 well to obtain valuable reservoir information and injectivity and long term leakoff tests will be performed to confirm injection rates and pressures. The data collected will be used to finalize the re-stimulation program.

The previously announced 2D seismic program, consisting of 407 km, has been completed. Approximately 90 percent of the acquired lines are currently being processed and we anticipate receiving data by June 2012 on all the lines. The objective of the seismic program is to further define basin structure and burial history as well as to aid in the selection of individual well locations.


The Company has granted 8,915,000 stock options pursuant to its previously approved stock option plan to directors, officers, employees and consultants of the Company. The options are exercisable over 5 years at an exercise price of $0.15 per share, a 100% premium to the current per share price.

LNG is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea, Poland and Bulgaria. LNG holds a 100% interest in approximately 5.5 million acres of prospective oil and gas properties in Papua New Guinea. LNG is operator and has a 50% net interest in approximately 360,000 gross acres of prospective shales in Poland together with San Leon Energy. LNG also has a 20% net interest in approximately 734,000 gross acres of prospective shales in Poland together with BNK Petroleum Inc., Sorgenia E&P S.p.A., and Rohol-Aufsuchungs Aktiengesellschaft. LNG has also entered into a farm in agreement relating to 405,080 acres of prospective argillite formation in Bulgaria with Direct Petroleum Bulgaria EOOD, a subsidiary of TransAtlantic Petroleum Ltd. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".


Dave Afseth, President & CEO

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including information on the resources in the Slawno, Slupsk and Starogard concessions and updates on operations. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks related to unsatisfactory results of due diligence, international operations and doing business in foreign jurisdictions, risks associated with the oil and gas industry and exploratory and development activities generally (e.g., operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, risks associated with equipment procurement and equipment failure), the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals, and counterparty risk related to the stability and viability of the Company's joint venture participants.

Shares Outstanding: 338,719,365

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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