Lion completes capital raising
Tuesday, December 6 2016 - 02:20 AM WIB
ASX-listed Lion Energy Limited announced Tuesday it has completed a successful capital raising to sophisticated investors and management which has raised A$600,000 before costs.
?The funds will underpin an exciting exploration and development program with the aim to position Lion for major growth in 2017,? the company said in a statement.
Elsewhere, Lion reiterated the Amanah Timur-1 well in the South Block A PSC in Aceh Province is now scheduled to spud on December 12, 2016. The well has a planned total depth of approximately 530 meters and will test sandstone reservoirs in a crestal location that were oil productive in a pre-WWII field in the same area, as well as deeper reservoirs not previously drilled. Prospective resources (100%) range from 2.0mmboe (P90) to 10.7mmboe (P10). Lion has a 40.7 percent interest in the block
The cost of drilling and testing is estimated at US$1.3 million (US$0.53 million net to Lion). The prospect is located close to oil and gas infrastructure and the joint venture will work to accelerate development in event of success. In addition, the Joint Venture continues to advance plans for testing the highly attractive Jerneh gas/condensate prospect in 2017.
?In our Seram PSC (Lion 2.5%) production continues at ~3550 bopd and a lifting of at least 500,000 bbl (12,500 bbl net) is scheduled in late-December 2016,? the company said in the update statement. At current oil prices, this is anticipated to deliver approximately US$450,000 cash net to Lion. Progress is ongoing by the Joint Venture to secure the PSC extension post 2019 which would enable the 2tcf Lofin discovery to move towards development, the statement said.
Lion?s CEO, Kim Morrison, noted ?We are delighted with the support received in our capital raising which is an endorsement of Lion?s clear growth plans. The imminent spud of the Amanah Timur well in the prolific North Sumatran Basin is another step on our path to transform Lion to becoming a major regional player. We also continue to pursue new production opportunities; progress our joint studies to PSC?s; advance the world class Jerneh prospect for 2017 drilling; and work on extension of the Seram PSC.?
Editing by Reiner Simanjuntak