12/5/2008 NR....60% of ...who is privateco?

LNG Energy Ltd. ("LNG") (TSX Venture -- LNG) announces that it has acquired a 60% interest in a private Delaware company ("Privateco") for a purchase price of US$6 million.

Privateco has recently entered into a purchase and sale agreement with BNK Petroleum Inc. ("BNK") under which BNK will sell to Privateco approximately 2,800 acres of oil and gas leases which are adjacent to BNK's East Tishomingo Field development, in Carter County, Oklahoma and an estimated 86,000 acres of leases in the Black Warrior Basin of Mississippi and Alabama for US$10 million. The acquisition by Privateco of the oil and gas leases from BNK is expected to close in mid December.

BNK has also entered into an Exploration Agreement with Privateco in regard to the Black Warrior acreage whereby BNK can earn up to a 50% working interest in a portion or all of the Black Warrior acreage by drilling a series of test wells on identified prospects. The exploration program requires BNK to pay for Privateco's share of costs in an eight well test program. BNK is currently projected to incur an expenditure of up to US$10 million in the eight well program in order to earn the 50% working interest. BNK is committed to drill three wells, the first of which is to be spudded by September 30th, 2009. Failure to commence any of these three wells on scheduled dates will subject BNK to liquidated damages of $500,000 per well. In addition, Privateco will have the option to participate for up to a 20% interest, at its proportionate cost, in a new shale exploration project that BNK is currently reviewing.

"We are very pleased to be able to participate in this acreage in a basin with existing production and great potential for expansion" said Dave Afseth, President of LNG. "The purchase is a small amount of our current treasury, should bring short-term cash flow and will not impact on our planned PNG gas program."