Release: Lion Energy: Drilling update Neif Utara A-1 well

(17 March 2008)--The Company advises that exploration well Neif Utara A-I has at midnight on 15th March 2008:
? Reached a depth of 1,511 feet rotary kelly bushing (RKB) measured depth (MD).
? Cemented 13-3/8? casing to 1,508 feet RKB MD.
? Is currently nippling up & testing the BOP stack prior to making up a 12-1/4 inch bottom hole assembly to resume drilling operations.

Neif Utara A-1 spudded on February 28th at 10:00 AM in the Seram (Non Bula)Block Production Sharing Contract on the island of Seram in eastern Indonesia

Planned TD is 7,309 feet the well is expected to take approximately 42 days.

The Neif Utara A prospect is an elongate thrust and reverse-fault controlled four way dip closed anticline, situated at the southeast end of the Oseil high trend, along the Oseil - East Neif anticlinorium.

The primary target is the Manusela Carbonate, interpreted to be similar in reservoir characteristics to the nearby Oseil oilfield, which is currently producing at approximately 4,000 BOPD, with cumulative production to 31st December 2007 of 6,533,631 BO.

For the Neif Utara A prospect, deterministic stock tank original oil in place (STOOIP) has been estimated at 34 million standard barrels of oil (MMSTBO), and reserves of 10.2 MMSTBO using a 30% recovery factor.

Well cost is projected to be US$6,329,784.

SERAM (NON-BULA) PSC
LION, through its wholly owned subsidiary Lion Petroleum Seram Limited, holds a 2.5% shareholding in the Seram (Non Bula) Block Production Sharing Contract. The major shareholder and Operator of the Joint Venture is CITIC Seram Energy Limited (51%). Other shareholders are KUFPEC (Indonesia) Limited with 30% and Gulf Petroleum Investment (16.5%).

The block contains the Oseil oilfield which has produced 6,533,631 barrels (to 31st Dec 2007) of crude oil since initial field start-up in January 2003. (end of release)