Lion Energy to Study Unconventional Assets in Indonesia

Lion Energy has got green light from Indonesian oil and gas regulator to jointly study unconventional potential of two prospective areas in Indonesia’s North and Central Sumatra Basins.  

In North Sumatra, Lion will lead a joint study covering an area of 4684km2 in the southeast of the basin. Under an agreement announced by Lion on 19 November 2014 the company will operate the study with a 55% interest; and the partners in the conventional Bohorok PSC, which partly overlaps the area of the unconventional joint study, jointly have 45% interest.

In Central Sumatra, Lion will conduct a joint study over an area of 2478km2 covering part of the Bengkalis Graben, a major oil province in the east of the basin. Lion is the operator of the study with 75%, and the conventional rights holder in the partly overlapping area, has a 25% interest.

The studies will be undertaken with assigned universities and will refine Lion’s understanding of the key unconventional plays and prospective unconventional resources in the areas.  This is anticipated to take approximately 6 months to complete; and on completion the joint study participants will hold certain priority rights, including the right to match the highest bid, for any resultant unconventional production sharing contract (PSC).   

Lion Energy Ltd is an ASX listed oil & gas exploration & production company focused on Indonesia, where it has been operating for over fifteen years. It has two existing conventional Production Sharing Contracts (PSC’s) – Seram and South Block A - and an early mover position in the fledgling Indonesian unconventional industry via four Joint Study Applications.