Australia?s Lion Energy fails again to sell Indonesian oilfield

Australian junior oil firm Lion Energy Limited said on Friday that it failed again to complete the sale of its 100 percent interest in Bula oilfield in Seram Island, Maluku to local firm PT. Ilham Treda Industri as the latter again did not make good its payment commitment.

The company, however, said that it was currently in talks with other potential purchaser.

Late last year Lion clinch deal to sell Bula PSC along with drilling rig and other heavy equipments for US$ 5 million to Ilham Treda, but until the March 2005 deadline the latter could not make payment. Lion then approached Southern Petroleum Pte and had almost clinched deal, but in the middle of sale process Ilham Treda said it would wire the $5 million as payment to Bula assets, but again failed to make good its promise. The deal with Southern petroleum also went off.

Bula PSC is a small oilfield with last quarter?s average production of 202 barrels per day.

Elsewhere, Lion said that it was looking to seek two sole risk shallow wells in Seram-Non-Bula PSC. Lion has 2.5 percent interest in Seram Non-Bula with the remaining balance held by operator Kuwait?s Kufpec. (alex)