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Lion given green light for unconventional hydrocarbon search in Indonesia

02nd March 2015

Lion Energy has received formal approval from the Directorate General of Oil and Gas (MIGAS) of the award of two separate unconventional joint studies over two highly prospective areas in Indonesia’s North and Central Sumatra Basins

Lion Energy has received formal approval from the Directorate General of Oil and Gas (MIGAS) of the award of two separate unconventional joint studies over two highly prospective areas in Indonesia’s North and Central Sumatra Basins
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

”The award of these two unconventional joint studies is a major milestone for Lion and show we are delivering on our promises,” said Kim Morrison, Lion CEO. “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.”

In North Sumatra, Lion will lead a joint study covering an area of 4,684 square kilometres in the southeast of the basin. Under an agreement announced by Lion on 19 November 2014 it will operate the study with a 55 per cent interest; and the partners in the conventional Bohorok PSC, which partly overlaps the area of the unconventional Joint Study, jointly have 45 per cent interest.

In Central Sumatra, Lion will conduct a joint study over an area of 2,478 square kilometres 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 per cent, and the conventional rights holder in the partly overlapping area, has a 25 per cent 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. This is anticipated to take approximately six 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).

 

 

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