Lion to be pioneer in Indonesia?s shale gas sector
Tuesday, January 21 2014 - 10:28 AM WIB
ASX-listed firm Lion Energy Limited announced on Tuesday it has successfully completed a concurrent series of transactions to reposition the company as an early mover in the Indonesian unconventional oil and gas industry, augmented by two Indonesian conventional production sharing agreements (PSCs).
Lion also welcomes two new Indonesian strategic investors and a new leadership team with extensive experience in the Indonesian oil and gas industry. Shareholders at a meeting in Perth on December 12, 2013 overwhelmingly approved the transactions. The Australian Securities Exchange (ASX) has formally approved the relisting of Lion shares, with trading to recommence on January 22, 2014 .
Lion has raised A$9.5 million (before costs) and has also converted a A$1.5 million convertible note into ordinary equity.
Lion?s portfolio now comprises:
? a 2.5% interest in the producing Seram PSC; The PSC covering an area of 1,524 km2 is located in an onshore, frontier setting on the island of Seram in eastern Indonesia . It contains the Oseil oilfield and surrounding satellite fields that are currently producing approximately 2400 barrels of crude oil per day (Lion?s 2.5% share being 60 BOPD). The Seram Project partners are undertaking a development drilling program designed to expand existing production and in 2014, a keenly awaited appraisal of the exciting 2012 Lofin-1 discovery is planned
? 35% equity in the South Block A PSC exploration in the heart of the North Sumatra Basin ; The underexplored block is centrally located in the prolific North Sumatra Basin and consists of western Area 1, that covers an area of 1,256.5 km2, and Area 2 to the east covering 637 km2.
? four Unconventional Joint Study applications covering more than 17,000km2 in Sumatra; Lion has submitted Joint Study Applications for potential oil and gas unconventional areas in onshore Indonesia covering a total area of circa 17,000 km2. Lion?s initial technical assessment has identified potential of multi-tcf scale gas and multi-hundred million barrels of oil in the areas of the applications
Under the new portfolio Lion emerges strongly as a pioneer in Indonesia?s emerging unconventional (shale gas/oil, tight gas/oil) business while simultaneously developing exciting, complementary conventional oil and gas production and exploration assets.
?The strong investor support that we have received will underpin the new recapitalised, reskilled and repositioned Lion Energy well into the future,? said Lion?s Executive Chairman, Russell Brimage. ?We have a combination of deep experience, highly prospective assets and the requisite exploration and technical development capabilities.?
Editing by Johannes Simbolon