| ||April 10, 2012|
LNG Energy Engages Advisor To Manage Farm-Out Process In Respect Of The PPL 319 Licence
| ||LNG Energy Ltd. ("LNG") (TSX Venture -- LNG) announces that further to its news release of March 29, 2012 relating to the completion of 2D seismic testing on Papua new Guinea PPL 319 Licence and the identification of the Tuyuwopi prospect, LNG has engaged RFC Corporate Finance Ltd. ("RFC"), based in Sydney, Australia to initiate and manage a farm-out process in respect of PPL 319.|
PPL 319 is in the lowland area of the Papuan fold and thrust belt between several substantial oil and gas fields and is on-trend with Oil Search's Kutubu and Gobe producing oil fields. 148km of 2D data was acquired during the periods April-June and October-December 2011 and was managed by GAMA ProjEx. The survey covered 67 km of alluvial river flats around the Kikori River, 59 km of karst limestone and 22 km of volcanic terrain.
PPL 319 contains mature Late Jurassic (Kimmeridgian) Lower Imburu Fm. source rocks that are presently generating hydrocarbons from adjacent local areas. LNG believes that PPL 319 contains clastic reservoirs of Lower Cretaceous-Upper Jurassic age (Toro-Hedinia-Iagifu) sandstones, particularly in the western area and the Kikori Bend area of the PPL 319 Licence. LNG believes the presence of source, seal, reservoir and structural traps on PPL 319 are extremely prospective along this hydrocarbon trend.
Probabilistic modeling was undertaken internally by LNG to evaluate the potential resource size of the Tuyuwopi Prospect. Although the estimates have not been audited by a qualified reserves evaluator or auditor, LNG believes the results of the 2D seismic program and internal modeling are encouraging. LNG is optimistic about the possibility of development in the area and strongly believes the results support further exploration of PPL 319.
"The work we have recently completed on PPL 319 has identified two significant prospects, of which Tuyuwopi is the most advanced." stated Dave Afseth, President and CEO of LNG. "Given the supportive infrastructure and lowland location close to the river and oil pipeline, we are excited by the size and prospectivity of Tuyuwopi and anticipate a very positive response to this farm out process."
Interested parties may contact Alex Hunter of RFC at +61 2 9250 0046 or email@example.com. Additional information regarding the farm-out for PPL 319 can be found at LNG's website: www.lngenergyltd.com.
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 argillite 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.
Per: "Dave Afseth"
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 on LNG's current results and expectations regarding the farmout process for PPL 319. 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.