Lion Energy awarded two unconventional joint studies over Sumatran acreage

JAKARTA (rambuenergy.com) – Lion Energy said that it has received formal approval from the Directorate General of Oil and Gas (MIGAS) at the Energy and Mineral Resources Ministry (ESDM) of the award of two separate unconventional joint studies over two “highly prospective areas” in Indonesia’s North and Central Sumatra Basins.

In a press statement, Lion said in North Sumatra, Lion will lead a joint study covering an area of 4684 km2 in the southeast of the basin.

Under an agreement announced by Lion on Nov. 19, 2014 Lion will operate the study with a 55 percent interest; and the partners in the conventional Bohorok PSC, which partly overlaps the area of the unconventional Joint Study, jointly have 45 percent interest.

In Central Sumatra, Lion will conduct a Joint Study over an area of 2478 km2 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 percent, and the conventional rights holder in the partly overlapping area, has a 25 percent 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, Lion said.

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).

”The award of these two unconventional joint studiesis a major milestone for Lion and show we are delivering on our promises. Lion will operate the joint studies with the process providing a clear and cost effective pathway to being awarded unconventional PSC’s. The studies are over areas we regard as containing some of the most prospective unconventional plays in Indonesia,” Lion’s CEO Kim Morrison noted.

North Sumatra Unconventional Joint Study interest holders:

• KRX Energy (wholly owned subsidiary of Lion Energy) 55.00%
• Bukit Energy 20.25%
• New Zealand Oil & Gas (ASX:NZO) 20.25%
• Surya Buana Lestarijaya 4.50%

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