Lion acquires rights to E. Indonesia joint study area

By Alexander Ginting

Australia-listed oil firm Lion Energy Limited reported on Wednesday that it has reached agreement with Transform Exploration Pty Ltd to acquire its joint study rights to an area of over 6500 km2 in Eastern Indonesia in exchange for issuing 4.8 million Lion ordinary shares. The share issue is subject to shareholder approval at Lion?s upcoming AGM on 30 May 2017.

Lion and Transform Exploration have recently completed a joint study over a highly prospective area in Eastern Indonesia. By completing the joint study the participants have gained certain rights, including the right to match the highest bid when the area is gazetted by the Indonesian Government. The company however, did not disclose the exact location of the joint study area.

Subsequent to the study?s completion, Lion?s management reached an agreement whereby Lion will acquire 100% of the rights in return for issuing a minimum of 4.8 million Lion shares to Transform Exploration or its nominee. The number of shares payable may increase to a maximum of 8 million shares should Lion raise additional capital within the next twelve months at a price below 5 cents per share, on a pro rata basis with a floor of three cents per share.

Lion CEO, Kim Morrison commented ?Lion is pleased to acquire 100% of the rights to this exciting area which has significant oil and gas potential in proven play types. The deal is part of our growth strategy in becoming a significant participant in Indonesia?s oil and gas sector?.