LNG Energy Ltd.

LNG Energy Ltd.

September 29, 2011 09:10 ET

LNG Energy Announces Spudding of Etropole Well in Bulgaria and Provides Poland Frac Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2011) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce that it has spudded the first well in Bulgaria under the farm-in agreement with TransAtlantic Worldwide Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Ltd. (TSX:TNP)(NYSE Amex:TAT) ("TransAtlantic").

The exploration well is located on the A-Lovech exploration license targeting the Middle Jurassic Etropole formation. Total depth is expected to be 3,200 meters with whole well core being taken over a substantial interval. The well will be completed in Q1, 2012. TransAtlantic's subsidiary, Direct Petroleum Bulgaria EOOD ("Direct Bulgaria"), will apply to the government of Bulgaria for a production concession (the "Etropole Concession"). The Etropole Concession is expected to cover an area up to 1,640 square kilometers (405,080 acres) for a term of up to 35 years.


In Poland, completion operations have commenced on the vertical Lebork S-1 well, including rigging up equipment, cleaning out the wellbore and performing formation evaluation tests prior to fracture stimulations. This initial fracture stimulation work on the Lebork S-1 well is scheduled to commence on September 30th and targets the very prospective Cambrian shale formation. The Company expects to have results available in the 4th quarter.

"With the imminent fracking of the very prospective Cambrian horizon in our Polish Lebork well scheduled for September 30th and the spudding of our initial Etropole farm-in well in Bulgaria, LNG will be testing two extensive shale basins simultaneously," commented Dave Afseth, President & CEO of LNG. "We are optimistic that the results from both Poland and Bulgaria will be positive and look forward to rapidly confirming the multi Tcf potential of these projects and moving them forward."

LNG is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea, Poland and the US. LNG holds a 100% interest in approximately 5.5 million acres of prospective oil and gas properties in Papua New Guinea. LNG has a 50% net interest in approximately 360,000 gross acres of prospective shales in Poland together with Realm Energy (BVI). 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 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 with respect to the spudding of the first well in Bulgaria and the commencement of completion operations and the fracture stimulation work in Poland on the Lebork S-1 well. 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 LNG's joint venture participants.

Shares Outstanding: 338,519,365

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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