LNG Energy Ltd.
TSX VENTURE : LNG

LNG Energy Ltd.

March 15, 2011 08:00 ET

LNG Energy Spuds Second Well in Poland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2011) - LNG Energy Ltd. (TSX VENTURE:LNG) ("LNG") is pleased to announce that Saponis Investments Sp. Z o.o. ("Saponis"), has spudded its second Polish gas shale well, Lebork S-1 on March 11, 2011, on the Slupsk concession. LNG Energy holds a 20% net working interest in Saponis which in turn owns three concessions in Poland.

Immediately after drilling the first well, the rig was mobilized and relocated 60km to the east onto the target location on the Slupsk concession. The well location is 30km southwest of the Lane Energy/ConocoPhillips' Lebien LE-1 well which was drilled and completed in late 2010. The Lebork S-1 well is being drilled with the same drilling rig contractor, crew and equipment used for the ConocoPhillips well located at Stegna (late 2010) and the LNG Wytowno S-1 well (early 2011). LNG believes that the procedural familiarity and experience gained from these successfully drilled previous wells will benefit the Lebork S-1 well through optimized drilling efficiencies, leading to reduced overall costs.

LNG is very encouraged with the previously announced results of its first gas shale well drilled, Wytowno S-1 and is currently undertaking extensive core analysis testing to characterize the 221 meters of prospective Cambrian, Ordivician and Lower Silurian gas shales encountered. This analysis is expected to be received in approximately 6 weeks. Rock properties obtained from the core analysis will determine how and where hydraulic fracturing to stimulate the zones of greatest anticipated natural gas production will be undertaken. LNG is currently evaluating efficiencies that may be achieved by performing fracture stimulations on both the Lebork S-1 and the Wytowno S-1 wells concurrently.

"These are very exciting times for LNG as we develop our acreage in the Baltic basin's gas shales by spudding our second of three wells to be drilled in 2011. With each new well our team is becoming more efficient in all phases of operations. This experience will be of substantial benefit when we drill our recently acquired Joyce and Maryani concessions," said Dave Afseth, President and CEO of LNG.

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 2,800 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 spudding of a second well in Poland. 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: 257,834,365

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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