Lion: South Block A PSC granted 4-year extension

By Romel S. Gurky

ASX-listed Lion Energy Limited reported Wednesday that that the Aceh Oil and Gas Supervisory Board (or BPMA) has extended the South Block A PSC, in Aceh Province, exploration term for an additional four years, effective from January 19, 2017.

This follows the drilling of the Amanah Timur (AMT-1) discovery well which completed firm commitment obligations in the block, Lion said in a statement.

?The remaining area of the PSC is now 421km2 and the outline has been carefully selected by the Joint Venture to ensure all identified prospects and leads are included in the area. As a result, Lion?s Prospective Resource estimate for the top prospects in this exciting block is unchanged,? the statement said.

Lion said the ?non-firm? work program in the extension period comprises three wells and 50 km2 of 3D seismic. Progress will be reviewed by the regulator after two years and failure to either complete the program, or have a Plan of Development submitted, may result in expiry of the PSC with no financial penalty to participants, it added.

Lion said the Joint Venture has commenced working on the appraisal plans for AMT discovery with meetings scheduled in Jakarta during the week of January 30th. The plan is to accelerate activity, including commercialisation options, to allow a Plan of Development to be approved for the discovery.

Lion CEO, Kim Morrison commented ?Lion is delighted to have such prompt approval from the regulator for the extension of the SBA PSC following the drilling of the AMT discovery. The Joint venture can now accelerate appraisal activities as well as additional exploration in this highly regarded block.?

Lion has a 40.7 percent interest in the South Block A PSC with the other participant being Renco Elang Energy Pte Ltd (59.3% interest and operator).

Editing by Reiner Simanjuntak