Peak to Use Flex LNG Producer Concept at Bilabri & Orobiri Fields

FLEX LNG Ltd. has signed an MOU with Peak Petroleum Industries Nigeria LTD for the joint development of the Bilabri and Orobiri natural gas reserves using FLEX LNG's LNG Producer (LNG/P) concept.

The project will have an annual production capacity of at least 1 million tonnes for up to 15 years with first LNG expected in 2011.

When commenting on the signing of the MOU, Chief Executive Officer of FLEX LNG, Philip Fjeld stated:

"We are very pleased with this big step forward in our quest to provide the world with available LNG volumes in 2011. We are also very happy to demonstrate to the market that FLEX LNG together with leading partners and an innovative mind set, both technically and commercially, is able to secure gas supply to develop what will be Africa's first floating LNG project."

"We look forward to working with Peak Petroleum on a project that will revolutionize the LNG industry in many ways and that demonstrates that LNG projects in Nigeria do not necessarily have to be onshore"

"We will in due course initiate the process towards securing the LNG off-take agreements and aim to reach FID within 2008. We have already seen a great interest from both established players and new entrants for Atlantic Basin LNG volumes and we are confident that the volumes, once marketed in early 2008, will generate a strong interest."

"Our current portfolio, which now includes LNG supply projects in both the Pacific Basin and Atlantic Basin, puts FLEX LNG in a unique position to supply the global LNG market with a commodity that is desperately needed."

FLEX LNG was incorporated in 2006 with the objective of commercializing the world's first floating liquefaction units (LNG Producers) and signed a ship building contract with SHI on 14 March 2007 for two units utilizing the SPB LNG containment system. FLEX LNG signed a contract for an additional liquefaction unit in October 2007 and will have three LNG Producers on station producing LNG in 2011. This provides the LNG industry with a unique possibility of accessing currently uncommitted LNG supply in 2011.

By using the proven nitrogen expander liquefaction cycle, the most robust and flexible liquefaction technology in use in the LNG industry, an LNG Producer can source gas from hundreds of potential offshore locations world wide where natural gas today is either left stranded or is being flared.