Lion ups Indonesia stake

SYDNEY, December 12, 2018 – Australia’s Lion Energy has agreed to acquire an additional 16.5% share in Indonesia’s Seram (Non Bula) PSC for a total of USD 44 million, the company announced on Wednesday.

The sale, which will see the company’s stake in the PSC rise to 19%, is subject to shareholder approval. Lion is to pay the seller, Gulf Petroleum Investment, USD 32 million upfront, USD 7.2 million once a full field development plan is approved and a further USD 4.8 million once the project achieves first gas.

The PSC includes the Lofin gas find with 2C contingent reserves of 57.2 bcm (2.02 tcf) of gas and 18.2 million boe of condensate and Oseil oilfield with remaining reserves of 4.1 million barrels of crude.

“This opportunity is a game changer for Lion and, subject to funding and completion, will springboard the company into a significant regional gas player on the basis of reserves once commercialisation milestones are satisfied on the massive Lofin gas and condensate discovery,” Tom Soulsby, the company’s executive chairman, said in a statement.

Citic Resources operates the PSC with a 41% stake, with remaining partners Petro Indo Mandiri holding 30% and PT GHJ Seram 10%.

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