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EPIC: LIO
Market: ASX
52-week High/Low: A$0.10 / A$0.03
Sector: Energy
Market Cap: A$4.33M
Lion Energy

Lion Energy

Lion Energy (ASX:LIO) is focused on the emerging unconventional oil & gas market in Indonesia.

Lion Energy

www.lionenergy.com.au

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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:

Indonesian focus
- 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.

Clear strategy
- Targeting shale gas/oil and tight gas/oil in prolific Sumatran basins, leveraging synergies in conventional exploration, infrastructure and market access.

Well funded
- $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.

 

Seram Project

Overview

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).

 

(click here for more information on this project)

 

 

South Block A Project

Overview

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.

Background

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.

 

(click here for more information on this project)

 

 

Last updated on 27th July 2015.

Kim Morrison
Managing Director and CEO

Kim has a successful 28 year career working in senior technical and managerial positions with both majors and small cap companies in locations throughout the world. He graduated from The University of Sydney in 1984 with an Honours degree in Geology and Geophysics and also holds a Diploma in Applied Finance and Investment from The Securities Institute of Australia.

Kim commenced his career as a geologist with Hartogen Energy in Sydney and in 1989 joined Marathon Oil in Perth, subsequently moving with them to Jakarta and Houston. In 2000 he returned to Asia with Fletcher Challenge in Brunei as Head of Regional Geology. In 2001, Kim took on a senior portfolio management role with Shell in Malaysia and was posted to The Hague in 2005 to lead Shell's Asia Pacific New Ventures team. In 2006 he moved to Libya with Woodside as Onshore Exploration Manager and in 2008 returned to Perth as Business Development Manager for Oilex Ltd. Mr Morrison set up an exploration advisory business in 2010 and also co-founded KRX.



Russell Brimage
Executive Chairman

Russell has over 40 years’ experience in the upstream oil and gas industry, ranging from public listed oil & gas companies to the service industry - both onshore and offshore.

Prior to Lion Energy, Russell was Managing Director of Oilserv Australia, an oil field service company which he founded in 1982. The company became a dominant service contractor in Australia providing contract field operations, testing and wire-line services, facility design and construction, drilling and work-over services.

In the public company arena, Russell has demonstrated capability in capacity as CEO to secure and develop producing assets in both Indonesia and the state and federal shallow waters of the US Gulf Coast, often via industry counter-cyclical transactions, to transform companies from zero revenue to positive cash flow and profitability, with successful outcomes. As chief executive officer of Entek Energy Limited, he was an early mover in identifying shale opportunities in the US with the farm-in to approximately 60,000 acres in the Niobrara shale play in the states of Colorado and Wyoming in August 2009.



Stuart B Smith
Executive Director

Mr Smith has over 20 years experience in the energy industry. He spent 16 years in investment banking specialising in the energy sector including involvement in equity research, IPO's, secondary capital raisings and M&A. From 2005 to 2008 Stuart was Head of Asia-Pacific Oil & Gas Research for Merrill Lynch, based in Singapore. In the last six years he has held senior management roles with a number of privately-held Asian-based oil and gas companies, with responsibility for commercial and finance functions. These include Ephindo Energy (Indonesia’s leading CBM company), Triton Petroleum and Triton Hydrocarbons.

Stuart is a qualified Chartered Accountant (Australia) graduating from the University of Melbourne in 1988, and his initial experience was with Deloitte. From 2009 to 2010 he was a Non-Executive Director of Warsaw listed E&P company, Kulczyk Oil Ventures Inc, where he served on the Audit and Reserves Committees.



Tom Soulsby
Non-Executive Director

Tom is the CEO of Risco Energy Investments and has 22 years’ experience of the oil and gas and resources sector spanning investment banking, corporate business development and management/leadership roles.

A graduate of Swinburne and Monash Universities, he initially worked as an accountant, starting his career at KPMG and Western Mining. Tom then moved to Potter Warburg (now UBS) in Melbourne as an energy and resources equity research analyst. He subsequently joined ANZ in Melbourne, before being posted to Jakarta and ultimately Singapore as director of corporate finance and merchant banking. As a Director at Indonesian-listed Energi Mega Persada (EMP) from 2003 to 2008, he was responsible for the acquisition of assets which added 525 MMboe to EMP’s 2P reserves – a key growth driver for the company.

Tom has been instrumental in securing backing for Risco prior to its incorporation in 2010, as well as growing the company and its capabilities in his role of Chief Executive Officer. Under Tom’s leadership, Risco has participated in and funded over US$400m in successful transactions since 2010. He led the significant valuation creation, and subsequent monetisation, of Risco’s first South East Asian oil and gas conventional and unconventional portfolio in 2013.



Chris Newton
Non-Executive Director

Chris is director of business development and operations for Risco Energy Investments. In a career spanning 35 years in oil and gas he has covered the spectrum of exploration, development and production, developing core strengths in petroleum economics, strategic planning, business development and ultimately, top management.

A 1978 Geology graduate from Durham University, England, Chris also holds a Grad Dip in Applied Finance and Investment from the Securities Institute of Australia (SIA). He has spent more than 25 years in South East Asia in various industry capacities including Managing Director of Fletcher Challenge in Brunei, a stint as Managing Director of Shell Deepwater Borneo, President of Santos – Indonesia and CEO of Jakarta-listed oil and gas company, EMP. Along with Mr Soulsby, he was a co-founder director of Risco Energy in July 2010.

Chris was an active Director of the Indonesian Petroleum Association (IPA) between 2003 to 2008, including serving as President from 2004 to 2007. He remains an advisor to the IPA Board and is also the oil and gas advisor to the Jakarta based Castle Asia Group.




Roger Whyte
Principal Advisor

Roger is Managing Director of KRX Energy and brings over 30 years of wide-ranging experience in the oil industry encompassing senior managerial and technical roles.

Roger has a BSc degree in geology from the Australian National University and a BSc Honours degree from the University of Tasmania. His early career was spent with Shell, primarily involved with running offshore seismic operations. He later held positions with Union Texas Corporation in Singapore, London and Jakarta, where he rose to the position of Chief Geophysicist with responsibility for offshore seismic acquisition, processing and interpretation in the Tomori Block, Indonesia.

After returning to Australia in 1988, Roger operated an exploration consultancy business. In 2005 he was appointed Managing Director of GulfX Ltd with responsibility for the company’s offshore interests in the Gulf of Mexico. Roger was instrumental in the start-up of KRX in 2010 where he is currently Managing Director.



Sammy Hamzah
Principal Advisor

Sammy is CEO of Tower Energy and a pioneering authority in Indonesian unconventional oil and gas.

Sammy formed Tower in 2012 to pursue early entry into unconventional exploration (non-CBM) opportunities in Indonesia. He is also the founding shareholder and CEO of Ephindo Energy Private Limited, Indonesia’s leading first mover CBM company. He was formerly Unocal Indonesia Company’s (now Chevron Indonesia Company) Senior Vice President in Indonesia and has over 20 years of general management experience.

He is currently also Vice Chairman of the Indonesian Petroleum Association, Chairman of the Permanent Committee of Coordination of Energy Association at KADIN (Indonesian Chambers of Commerce) and a founder of the CBM Advisory Board, as well as a non-executive director of Rio Tinto Indonesia.



Zane Lewis
Company Secretary

Mr Lewis is a principal and joint founder of corporate advisory firm SmallCap Corporate which specialises in corporate advice and compliance administration to public companies. He is also a member of Chartered Secretaries Australia.

Mr Lewis provides the board with a wealth of knowledge obtained from his diverse financial and corp orate experience in previous appointments.



Arron Canicais
Joint Company Secretary

Arron is a Chartered Accountant with 9 years experience in audit and assurance and financial officer roles. He holds a Bachelor of Commerce degree from the University of Notre Dame Australia and is a member of the Institute of Chartered Accountants Australia.

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.



Last updated 27th July 2015.

ASX Code: LIO
ABN: 51 000 753 640

Lion Energy Timeline

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December 02 2016

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