Lion Energy to join forces with PSC holders for North Sumatra basin exploration

Lion Energy to join forces with PSC holders for North Sumatra basin exploration

WEST PERTH, Australia -- Lion Energy will join forces with conventional PSC holders Bukit Energy and New Zealand Oil & Gas to jointly explore an area within the prolific North Sumatra basin.

As part of the transaction, Lion, via its wholly owned subsidiary KRX Energy, has an option to acquire a 15% interest in the conventional Bohorok PSC; and the conventional PSC partners have the oppurtunity to acquire a 45% interest in Lion's unconventional joint study application over a partially overlapping area.

The conventional Bohorok PSC is in the southern part of the North Sumatra basin, which has discovered reserves of 25 tcf gas and 1.6  billion bbl of oil condensate. The Bohorok PSC was signed on Jul. 20, 2012 and entitles the partners to explore for and develop conventional oil and gas accumulations. It is surrounded by oil and gas fields and is located close to Medan, Indonesia. The block is operated by Bukit Energy Bohorok with New Zealand Oil & Gas as co-venturer.

The existing PSC holders have recently completed a 206 km 2D seismic survey over the block and interpretition of the data is ongoing. The current plan is to drill a well-defined gas condensate prospect in fourth-quarter of 2015.