| ||January 09, 2012|
LNG Energy Announces Bulgarian Well Reaches TD With Gas Shows and Initial Polish Stargoard Well Data
| ||LNG Energy Ltd. ("LNG") (TSX Venture - LNG) is pleased to announce that the Peshtene R-11 well in Bulgaria has been successfully drilled to its total depth of 3,190 meters under the farm-in agreement with TransAtlantic Worldwide Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Ltd. (TSX: TNP, NYSE-AMEX:TAT) ("TransAtlantic"). |
The Peshtene R-11 well ("Peshtene"), located on the A-Lovech exploration license, targeted the Middle Jurassic age Etropole formation. Peshtene was successfully drilled in a total of 56 days to a depth of 3190 meters, including 354 meters of Etropole argillite. Numerous gas shows were recorded in the argillite, consisting of methane, ethane and propane (C1, C2, and C3). Over 289 metres of the Jurassic age Etropole and Ozirovo whole core has been taken from the well. The Ozirovo formation produces nearby in the Chiren Gas Field and in TransAtlantic's Deventci R1 discovery well 36 kilometers to the east..
Petrophysical analysis of the Etropole formation indicates net pay of 114 meters, with an average porosity of 6% and water saturation of 48%. Comprehensive core analysis by Core Laboratories is expected to be completed in the first quarter of 2012. The core data from the Etropole argillite and Ozirovo carbonate will be evaluated for reservoir rock properties, geochemical analysis, and rock mechanics. The results of the core and well log analysis will help to design and plan the future completion procedure for the well. Peshtene is scheduled to be completed and tested in Q2, 2012. Based on the data recovered to date, TransAtlantic's subsidiary, Direct Petroleum Bulgaria EOOD ("Direct Bulgaria"), has applied to the government of Bulgaria for a Production Concession (the "Stefanetz Concession"). The Stefanetz Concession is expected to cover an area up to 1,600 square kilometers (395,000 acres) for a term of up to 35 years.
"We are excited with the very positive gas shows and data obtained in the Peshtene." commented Dave Afseth, President and CEO of LNG. "We look forward to reviewing the results of the core analyses that will enable us to design and implement an appropriate stimulation to flow test both the Peshtene and Starogard wells."
LNG is also pleased to announce that it has received additional data from the Starogard S-1 well drilled on the Starogard concession in Poland in which LNG has an indirect 20% interest through its ownership of Saponis Investments Sp z.o.o ("Saponis"):
|Starogard S-1 well
||Lower Silurian Shale
||1.4 to 6.9% avg 4.1%
||1.7 to 5.8%, avg 4.3%
|Gas filled Porosity
||0.4 to 1.8 %, avg 0.9%
||0.4 to 1.9%, avg 1.0%
|TOC by % weight
||0.1% to 3.3% TOC
||0.1% to 1.5% TOC
The previously announced 2D seismic program is progressing with approximately 50% of the data already acquired. The program consists of about 407 km on the Saponis concession. The objective of the seismic program is to further define basin structure and burial history as well as to aid in the selection of individual well locations.
As previously announced the re-stimulation and testing of the Lebork S-1 well is anticipated to take place in the spring 2012 once the weather warms up.
LNG is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea, Poland and Bulgaria. LNG holds a 100% interest in approximately 5.5 million acres of prospective oil and gas properties in Papua New Guinea. LNG is operator and has a 50% net interest in approximately 360,000 gross acres of prospective shales in Poland together with San Leon Energy. 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 has also entered into a farm in agreement relating to 405,080 acres of prospective shale formation in Bulgaria with Direct Petroleum Bulgaria EOOD, a subsidiary of TransAtlantic Petroleum Ltd. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".
LNG ENERGY LTD.
President & CEO
For further information please contact:
Investor relations: 1-778-373-0103
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
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 LNG's current plans and expectations regarding the Peshtene and Starogard wells, including expected timing of results of core and log analyses, the hypotheses regarding the geology of the basin in which drilling is currently underway, expected timing of commencement of the planned completion programs. 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 the Company's joint venture participants.