LNG Energy Enters Into Investment Agreement in PNG and Initiates Seismic Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/24/13 -- LNG Energy
Ltd. (TSX VENTURE:LNG) ("LNG") is pleased to announce that its
subsidiary, Telemu No. 18 Limited ("Telemu"), has entered into an
investment agreement with EERL Holdings (BVI) Ltd. ("EERL") under
which EERL contributed US$4,000,000 towards a 22km 2D seismic program
and some past cost reimbursement on Telemu's PPL 319 in Papua New
Guinea for a 31.5% equity interest in Telemu. In connection with the
investment, LNG, EERL and Telemu also entered into a shareholders'
agreement to govern the operations of Telemu.
The 22km seismic program has been designed to image and further
define the Tuyuwopi structure in the strike (elongated) direction. As
discussed in press releases of March 29, 2012 and April 10, 2012, the
Tuyuwopi structure is an oil target projected to contain reservoir
and source rocks of similar age to those found in the productive SE
Gobe and Kutubu oil fields operated by Oil Search and on-trend with
PPL 319. The Company estimates that the Tuyuwopi structure closure
may be 35km2 (P50) to 66km2 (P10) with a projected 25 meters (P50) to
30 meters (P10) of overall reservoir thickness.
Mobilization for this seismic program is underway and supplies are
being transported to location.
"This seismic program is intended to further our confidence in the
Tuyuwopi oil prospect and we hope will confirm earlier geological
interpretations of this key asset in PNG to assist our on-going
farm-out efforts. We welcome EERL as a partner in PNG and look
forward to working with them," commented David Nelson, President &
CEO of LNG.
In conjunction with the Telemu No. 18 transaction, the previously
announced Credit Agreement between the LNG's subsidiary Kaynes
Capital S.a.r.l. ("Kaynes") and undisclosed third parties (the
"Lenders" ) in a press release dated February 27, 2012, has been
amended to extend the maturity date from the first anniversary to the
third anniversary. The Credit Agreement has been further amended to
increase the contingency bonus payments from 3.125% to 6.25% and
9.375% to 18.75% for the US $1.25 million and US 3.75 million
portions of the facility respectively.
EERL is a British Virgin Islands company that is owned as to 50% by
Enterprise Energy Ltd. (TSX VENTURE:EER) and 50% by the Lenders.
LNG is a Canadian exploration and development company focused on
developing oil and gas reserves in Papua New Guinea, Poland and
Bulgaria. On closing of this transaction, LNG holds a 68.5% interest
in approximately 5.5 million acres and 100% interest in approximately
42,000 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 20.18% 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.
David Nelson, 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
investment agreement and the 22km seismic program. 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.
Shares Outstanding: 338,719,365
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.
LNG Energy Ltd.
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