Layne Christensen's Energy Division Announces Contract Signing Of Chilean CBM Project

Mission Woods, KS - Layne Christensen Company announced recently that its subsidiary, Layne Energy, Inc., and a group of Chilean investors (the "Layne Group") successfully negotiated a definitive agreement for the development of unconventional gas, primarily coalbed methane ("CBM") gas, in south central Chile. The concession will total approximately 720,000 acres. The formal agreement with a term of thirty-five years was signed in a ceremony with Minister of Mines Ms. Karen Poniachik in Concepción, Chile. In conjunction with negotiations for the definitive agreement, the Layne Group formed Layne Energia Chile S.A., a Chilean company in which Layne Energy, through its Chilean subsidiary, owns 85% and has operating control of the project.

Colin B. Kinley, President of Layne Energy, stated, "We are very excited about the prospects on this project. Our initial geologic studies have been encouraging as to structure and gas-in-place potential. We anticipate having an active pilot program in process later this year. Layne Christensen along with its Latin American partners were early pioneers in the mineral exploration drilling business in Chile. We now have an opportunity to build on that successful partnership again by continuing our role in helping Chile develop its natural resources."

Andrew B. Schmitt, President and CEO of Layne Christensen Company, stated, "It is exceedingly rare to have an energy resource prospect of such scale with exclusive development rights. We are pleased and honored that the government of Chile saw fit to award Layne Energy and its partners this concession. We plan to do our best to develop the full potential."

SOURCE: Layne Christensen Company