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Press Release

LNG Energy Enters Into Agreement to Substantially Increase Polish Shale Gas Acreage Position

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce that its wholly owned subsidiary, Kaynes Capital S.a.r.l. has entered into an agreement to acquire a 50% interest in Joyce Podlasie LLC ("Joyce") and a 50% interest in Maryani Podlasie LLC ("Maryani") from Source Energy Partners LP ("Source") for US$4 million. Joyce indirectly holds an undivided 100% interest in the Ilawa Concession in Poland and Maryani indirectly holds an undivided 100% interest the Wegrow Concession in Poland. The remaining 50% of Joyce and Maryani are both owned by Realm Energy (BVI). Together the Ilawa and Wegrow Concessions comprise approximately 360,000 acres and will increase LNG's net Polish shale gas acreage by approximately 180,000 acres. This acquisition provides LNG one of the larger acreage positions in the Baltic Basin.
LNG will assume Source's obligations and pro rata 50% financial commitments in the concessions. These financial commitments are limited in 2011 and 2012 and do not require drilling or major capital expenditures. The closing of this acquisition is subject to a number of conditions, including the completion of due diligence, and is scheduled to close on February 14, 2011.
The Baltic Basin in Poland is one of the most exciting and prospective shale gas development arenas in Europe. These two new concessions along with LNG's existing acreage are within the core of the Baltic shale gas basin activities, adjacent to or in close proximity to the concessions being evaluated by ExxonMobil, Marathon, ConocoPhillips, ENI, Talisman and LNG through its ownership in Saponis Investments ("Saponis"). LNG will now participate in over 1,100,000 acres of core Baltic Shale acreage, increasing LNG's existing net land position from the 146,000 acres in Saponis to approximately 326,000 acres with this acquisition.
During 2011, in Poland LNG will be participating in three vertical wells in the basin through its ownership of Saponis, the first of which is currently nearing the end of drilling operations. New and reprocessed existing 2D seismic will be undertaken to further LNG's technical understanding of the Silurian/Ordovician gas bearing shale intervals within the newly acquired Ilawa and Wegrow concessions.
"The current drilling and development activities in Poland will be of substantial benefit to LNG over 2011 and 2012 as numerous new wells are drilled in the basin by various operators," commented Dave Afseth, President & CEO of LNG. "We are seeing very encouraging information from our first well being drilled and are excited about the technical characteristics, initial response and economic gas prospectivity of these shales as they are rapidly defined and developed in the basin."
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. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".
Shares Outstanding: 257,694,365
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 proposed closing of the acquisition from Source of interests in Joyce and Maryani. 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, including that closing conditions will be satisfied and that the transactions with Source will close. 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.
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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