LNG Energy Ltd.

LNG Energy Ltd.

October 13, 2009 08:00 ET

LNG Energy Ltd.: Update on Shale Gas Exploration Project in Poland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) -


LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce that it will exercise its option to participate for a 12% net interest in BNK Petroleum Inc.'s ("BKX") exploration project in Poland. LNG acquired its option through its 60% ownership of BWB Exploration, LLC ("BWB") which holds the option to participate for up to a 20% interest and has exercised the option to participate in full. The three concessions, Starogard, Slupsk and Slawno, are located in Northern Poland and total approximately 730,000 acres (2,951 square kms), for an approximately net 87,600 acres to LNG. License commitments will require the drilling and testing of one exploration well per concession before the end of 2010.

This opportunity is primarily targeting a Silurian aged resource play within the Baltic Basin, consisting of gas shales with a minimum gross thickness of 1000 ft (300m) and a maximum gross thickness of 3300ft (1100m) over all three concession areas. The resource presence is defined by wells that have been extensively cored (core intervals exceed 1000 m) for both scientific and exploration purposes by Polish research institutes over the last 50 years. Sampling of existing well cores has been completed, with testing having been initiated within laboratories familiar with characterizing US based gas resource plays. Preliminary core test results & resource characterization has been extremely encouraging relative to known US shale gas arenas and provided the technical rationale for participation.

Currently, Poland does not have sufficient internal natural gas production to meet its domestic demand requirements and must import additional natural gas from trans-European gas pipelines supplied by Russia. Two thirds of Poland's domestic requirements are met by imports from Russia, Uzbekistan and Germany (Source: Ministry of Economy, Republic of Poland). Consequently, all gas production is anticipated to be purchased within the domestic marketplace at prices substantially greater than those available within North America.

Lane Energy Poland Sp z.o.o. ("Lane"), who operates the adjoining and contiguous acreage (comprising six concessions totaling approximately 1 million acres), has recently entered into a joint venture participation with ConocoPhillips announcing it as an significant shale gas resource play opportunity immediately adjacent to the three optioned BKX concessions (see map below; BNK's concessions are held by Saponis Investments). Lane is currently doing core analysis and plans to spud their first well Q1 2010.

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/lng_map_10_13_2009.pdf


Dave Afseth, President & CEO

This news release may contain forward-looking statements based on assumptions and judgments of management of LNG regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. LNG disclaims any intention or obligation to revise or update such statements except as may be required by law.

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