Lion Energy sells interest in Bula PSC
Tuesday, November 16 2004 - 11:21 PM WIB
Australian junior oil firm Lion Energy Ltd. announced on Wednesday it had agreed to sell its 100 percent working interest in Bula PSC in Seram island Maluku, together with drilling rig and heavy equipment to a company called PT.Ilham Treda Industry.
Lion said it expected sale proceed and loan repayments totaling over US$4,350,000 plus proceed from the sale of oil inventory to the date of the sale totaling approximately $1,100,000. Transaction completion is expected January 2005. Transaction is also subject to shareholders' approval.
Bula PSC has small oilfield with production of around 500 barrels per day.
Lion said it would retain its 2.5 percent interest in nearby Seram (non-Bula) PSC, whose Oseiul oilfield is expected to flow 17,000 barrels of oil per day by mid-2005. (alex)