LNG Energy Ltd.
TSX VENTURE : LNG

LNG Energy Ltd.

February 21, 2011 08:00 ET

LNG Energy Completes Acquisition of Polish Shale Gas Acreage

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2011) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) announces that further to its news release of February 7, 2011, its wholly owned subsidiary, Kaynes Capital S.a.r.l has completed the acquisition of a 50% interest in Joyce Podlasie LLC ("Joyce") and a 50% interest in Maryani Podlasie LLC ("Maryani") from Source Energy Partners LP ("Source") for US$4 million. Joyce indirectly holds an undivided 100% interest in the Ilawa Concession in Poland and Maryani indirectly holds an undivided 100% interest the Wegrow Concession in Poland. Joyce and Maryani comprise approximately 360,000 acres and will increase LNG's net Polish shale gas acreage by approximately 180,000 acres. 

This new acquisition gives LNG Energy a gross acreage position in Poland of approximately 1.1 million acres in 5 separate concessions, and approximately 326,000 net acres.

"This acquisition has more than doubled our net acreage in Poland and comes at a time when our first well drilled has confirmed that gas is present in the Baltic Shale. We will be mobilizing on our second drill site shortly." commented Dave Afseth, President & CEO of LNG. "We look forward to the analysis of all the data from the core samples taken in the first well to determine what shale intervals should be tested further." 

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, and a 100% net interest in BWB Exploration, LLC ("BWB"), which holds approximately 2,217 acres of oil and gas leases in Carter County, Oklahoma and an estimated 28,757 acres of leases in the Black Warrior Basin of Mississippi and Alabama. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".

LNG ENERGY LTD.

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 regarding the closing of the acquisition from Source of interests in Joyce and Maryani. 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 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: 257,909,365

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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