Lion Energy Snapshot
A New Approach to Asian Energy
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.
Lion’s leadership team has vast experience in the south-east Asian oil and gas industry, particularly Indonesia. In its recent recapitalisation, two Indonesian strategic investors, Risco Energy and Tower Energy, became substantial shareholders of the company.
Lion’s transformation from a conventional oil producer to an Indonesian unconventional oil & gas pioneer is supported by several key facets:
- World 4th most populous country, rapidly growing energy demand.
- Declining conventional oil and gas reserves, increasing gas prices.
- Competitive terms, government actively promoting exploration for unconventional oil and gas resources.
- Targeting shale gas/oil and tight gas/oil in prolific Sumatran basins, leveraging synergies in conventional exploration, infrastructure and market access.
- $9.5 million in private placement and public raising to fund exciting 2014 program (seismic, exploration drilling, appraisal wells and development drilling).
Dynamic new team.
- The board, management and senior advisors having extensive experience and proven track records in the Asian energy space.
Impressive existing acreage footprint and clear growth plans
- Strategic interest in producing Seram PSC (~75 bopd net).
- 35% ownership of highly prospective conventional North Sumatran South Block A.
- Rights to progress 4 unconventional joint study applications, multi tcf unrisked potential.
Lion is an Indonesian focused oil and gas exploration & production company. It is an early mover in the unconventional oil and gas industry, augmented by two conventional PSC’s.
- Lion, through its wholly owned subsidiary Lion International Investment Limited (LII), holds a 2.5% shareholding in the oil producing Seram (Non-Bula) Block Renewal PSC joint venture located onshore on Seram Island in Eastern Indonesia.
- Lion holds a 35% interest in North Sumatra Basin South Block A PSC through the acquisition of outstanding shares in KRX Energy Pte Ltd.
- Lion has rights to four Unconventional Joint Study Applications in Indonesia. Two of these are in the North Sumatra Basin and two and Central Sumatra Basins which are major conventional hydrocarbon producing basins. The Application are currently being considered by the Indonesia Government.
- Lion continues to actively pursue other opportunities in Sumatra at the nexus of conventional and unconventional exploration.
The Company, through its wholly owned subsidiary Lion International Investment Limited (LII), holds a 2.5% shareholding in the Seram (Non Bula) PSC joint venture (Seram Project). The PSC is located onshore on the island of Seram, in Eastern Indonesia covering an area of 1,524 km2.
The Seram Project contains the Oseil oilfield which produces approximately 3,400 bopd (approximately 85 bopd net to Lion).
In 2012 the Lofin-1 exploration well was drilled in the west of the PSC on a prominent structural feature. The well was a discovery flowing gas and condensate/oil on test with data indicating potential for a significant hydrocarbon column extending below the Lofin-1 total depth. This is currently being tested by the drilling and appraisal of the Lofin-2 now in progress.
Oseil field Background
The Seram Project contains the producing Oseil oilfield and surrounding structures which have since initial field start-up in January 2003, produced cumulative crude oil production of 13,349,119 barrels as at 31 March 2015 accompanied by 6.50 BCF of natural gas, most of which gas is utilised to generate electricity on site for the operations. Proven (1P) remaining reserves are 4.74 mmbbl (as of 31 December 2014).
South Block A Project
Lion has a 35% interest in The South Block A PSC through its wholly owned subsidiary KRX Energy (SBA) Pte Ltd. The PSC is centrally located in the North Sumatra Basin and contains large gas and overlooked oil volume potential. It is underexplored with nearby oil and gas infrastructure and undersupplied gas markets.
South Block A divided into two separate blocks, the western block is known as Area 1 and covers an area of 1,256.5 km2, while the smaller Area 2 block to the east, extends over the coastal boundary with an offshore portion, and covers an area of 637 km2.
Up until 2014, no new seismic had been acquired since the early 1990’s and no wells since 1992. The block contains attractive plays and continuations of structural trends that have been productive in adjacent blocks.
The North Sumatra Basin is one of the most prolific hydrocarbon provinces in Indonesia with over 80 known oil and gas fields. The United States Geological Survey World Petroleum Report (2000) indicates that reserves of approximately 25.6 TCF of gas, 900 MMBBL of natural gas liquid and 700 MMBBL of oil have been found in the North Sumatra Basin. Recent exploration drilling results in adjacent PSC’s are encouraging. In 2012/13 operator Medco, in the Block A PSC, drilled the Matang-1 gas discovery. Participant in the well, Premier Oil, reported in a press release on 3 May 2013 that the well flowed 25 MMSCFD with 15% CO2 and recoverable gas resource reported in the 100-400 BCF range.
Last updated on 27th July 2015.
Arron worked at Bentleys Audit and Corporate, a West Perth audit firm, for 5 years which specialized in the audits of junior exploration entities in WA. He has had significant exposure to the reporting and financial requirements of exploration entities and post-audit has been the financial officer and company secretary of other resource exploration entities in West Perth.
ASX Code: LIO
ABN: 51 000 753 640