LNG Energy Polish Well Reaches TD with Gas Shows

LNG Energy Ltd. is pleased to announce that the Wytowno S-1 well has been drilled to its total depth of 3,580 meters and is currently being prepared to have casing run and cemented. While drilling, significant natural gas shows were recorded in over 221 meters of the Lower Silurian, Ordovician and Cambrian shales. In addition, another 450 meters of gas shows were recorded in the middle and upper Silurian.

As expected, the strongest gas shows were encountered in the Ordovician shale, and these gas shows tested primarily methane, with a small percentage of both ethane and propane. The Ordovician shale interval in this first well is over 80 meters thick and represents a substantially thicker section than had been previously seen in earlier wells drilled in basin wide correlation mapping by Polish scientific institutes at shallower structural locations. The thick shale observed suggests that there is a trend of increasing thickness that may continue into deeper portions of the basin.

Approximately 200 sidewall cores have been taken for analysis of the physical parameters of the rock. These core samples will be analysed to obtain, porosity, permeability, total organic carbon, rock evaluation pyrolysis, thermal maturity, gas composition, micropaleontology, and mechanical properties. LNG estimates that it will take about 45 days to do a complete analysis of this core data after which a fracture stimulation of the wellbore can begin.

Once casing has been run in the Wytowno well and cemented in place, the rig will be demobilized and immediately relocated to the Lebork well location on the Slupsk concession to begin drilling operations. This second well site is located approximately 26 km from Lane Energy/Conoco’s Lebien well which was drilled, hydraulic fracture stimulated and tested in late 2010. The Lebork drill site has already been completed and all permits are in place.

“These natural gas shows are very encouraging and confirm that there is methane present in the Baltic Shale. We are pleased that drilling operations have gone as planned on our first well,” commented Dave Afseth, President & CEO of LNG. “We look forward to the analysis of all the data to determine what shale intervals should be tested further.”

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 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 2,217 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.

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Source: LNG Energy, February 16, 2011;