Lion to transform into Indonesian shale player
Wednesday, September 25 2013 - 04:19 AM WIB
Australian junior oil firm Lion Energy Limited is transforming itself from small Indonesian oil producer into emerging player in Indonesian unconventional oil and gas space through acquisition of all the remaining shares of KRX Energy it does not own and rights to four unconventional joint study agreements.
Under the deal, Lion will raise A$9.5 million through placement of shares to Risco Energy Investment and Tower Energy Indonesia Limited with total sum of $7.5 million and another $2million from public offering.
After transaction close, Risco and Tower will control 40 percent of Lion?s shares.
Currently Lion has a 2.5 percent interest in Seram (Non-BUla) PSC, an oil producing block in Maluku with Lion?s share of production at 63 BOPD, and a 30 percent stake at KRX Energy.
KRX has a 35 percent non-operating interest in South Block A PSC exploration block in North Sumatra and shale oil and gas joint study application, two of which are located in North Sumatra basin and another two located in Central Sumatra basin.
According to the company?s presentation released on Wednesday, Lion plans reinstatement to official quotation at the ASX on December 19, 2013.
Editing by Reiner Simanjuntak