Lion expects prospective area in eastern Indonesia to be gazetted next year

By Romel S. Gurky

ASX-listed Lion Energy Ltd said that an area in eastern Indonesia, where it has conducted a joint study, is expected to be gazetted by the Indonesian government next year and that the company holds rights to match the highest bid.

Lion said in a statement on Monday that a conventional Joint Study over a highly prospective area in eastern Indonesia was completed in March 2017 with the final meeting held with University Gajah Mada (who conducted the study) and the Indonesian regulator on 30 March 2017. "By conducting the study Lion gains preferential rights to an area of over 6500 km2. The exact location of the area remains commercially sensitive," the company said.

In May 2017 Lion announced it had reached agreement with the management of Transform Exploration Pty Ltd, the partner in the Joint Study, to acquire their 50 percent rights to the area in exchange for issuing 4.8 million Lion ordinary shares. The share issue was approved by shareholders at Lion?s AGM on 30 May 2017. As a result, Lion now has 100 percent rights to the area.

Editing by Reiner Simanjuntak