Lion to expand oil and gas interests in Indonesia

By Nellawati

ASX-listed Lion Energy Limited said that it had reached a deal on binding transaction coordination and convertible loan with KRX Energy Pte Ltd and Risco Energy Investments Pte Ltd.

With the deal, Lion Energy has secured a $1.5 million convertible loan facility from Risco, the company said in a press statement on Friday.

It will also raise $2,500,000 (before costs and expenses) by the placement of 100,000,000 fully paid ordinary shares in the capital of the company to Risco (Proposed Risco Placement).

The company stated that it will seek shareholder approval to issue up to another 80,000,000 shares (on a pre-consolidation basis) to professional and sophisticated investors (Proposed Investor Placement).

The company will acquire all of the direct or indirect interests held by Risco (or its affiliates) arising from Risco?s participating interests in an area of mutual interest agreement, including various unconventional oil and gas joint studies in respect of onshore areas in Indonesia in consideration for the issue of 39,900,108 shares.

Lion is currently a 30.77 percent shareholder of KRX as a result of its US$1 million funding commitment in KRX by way of subscriptions for KRX shares.

According to information from its website, KRX in June 2012 signed a farm-in agreement for 35 percent equity in South Block A PSC. In April 2012, it also entered into an agreement with two well established and respected Indonesian based companies to lead the technical evaluation on the unconventional opportunities in Indonesia.

Editing by Benget Besalicto ST