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LNG Energy spuds first shale gas well in Poland

Oilfield Technology,

Saponis Investments Sp. Z o.o., a 20% owned subsidiary of LNG Energy Ltd has spudded its first exploratory shale gas well in Poland. Wytowno S-1 has had an intermediate casing cemented in place so drilling can resume towards the Ordovician/Silurian primary objective.

The Wytowno well is the first exploration well that will be drilled to meet investment commitments for Saponis' three concession areas; Slawno, Slupsk and Starogard. The Wytowno S-1 wellbore is located within the Slawno concession area.

Saponis is using the same drilling contractor crews and equipment that drilled both ConocoPhillips/Lane Energy wells, with the first well being located less than 60 km (37 miles) from LNG's Wytowno S-1 wellbore. The primary target objective for all wells has been the Ordovician/Silurian Shales within the Baltic Basin. The Wytowno S-1 well, with a TVD of 3315 m, is anticipated to be drilled within 45 days, with an AFE cost of US$ 10 million to drill, case, hydraulic fracture complete and test the Ordovician/Silurian gas shale formation deliverability.

The well is also located in close proximity to the existing Polish natural gas pipeline delivery system, this should provide easy and relatively inexpensive access to the Polish gas market, where 2010 prices have averaged US$ 9 per thousand ft3.

“The spudding of the first well is an important milestone for our company in exploring the large natural gas potential for Poland where natural gas markets and prices remain robust. We look forward to Saponis successfully completing this well and drilling two more wells on Saponis' other two concessions in Poland in 2011.” commented Dave Afseth, President & CEO of LNG.

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