LNG Energy Ltd.

LNG Energy Ltd.

October 07, 2010 13:05 ET

LNG Energy Secures Drilling Rig for First Polish Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2010) - LNG Energy Ltd. ("LNG" or the "Company") (TSX VENTURE:LNG) is pleased to announce that its 20% owned Polish subsidiary, Saponis Investments Sp. Z o.o. ("Saponis"), has awarded the drilling rig contract to NAFTA Pila for the drilling of the Wytowno S-1 and Lebork S-1 wells on the Slawno and Slupsk concessions in Poland. NAFTA Pila recently completed drilling the Lebien LE1 well and is currently drilling the Legowo LE1 well, both for Lane Energy Poland Sp. Z o.o. ("Lane Energy") and ConocoPhillips. These two wells are shale gas test wells located on concessions directly offsetting the Company's Saponis concessions. Surface agreements have been secured for both the Wytowno S-1 and Lebork S-1 wells. Surface site construction is underway and once completed, mobilization and drilling will commence immediately upon the rig release from Lane Energy/ConocoPhillips.

"LNG will be utilizing the substantial shale gas drilling experience developed in the USA for the Wytowno and Lebork wells, including securing proven oilfield equipment used in the North American drilling rig design to optimize operational practices. Once drilling is completed on these wells, we will be utilizing North American engineering for the fracture design to maximize the potential of this unconventional shale gas opportunity," commented Dave Afseth, President & CEO of LNG. "While European gas prices are over two times higher than North American prices, we are committed to drilling and if appropriate, completing these wells in the most cost effective manner to maximize the return on our investment. 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."

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 also has a 20% net interest in approximately 734,000 gross acres of a shale gas exploration project 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 2,800 acres of oil and gas leases in Carter County, Oklahoma and an estimated 65,000 acres of leases in the Black Warrior Basin of Mississippi and Alabama. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".


"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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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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