Lion Energy in agreement to explore North Sumatran acreage
Lion Energy has announced that it 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 has an option to acquire a 15% interest in the conventional Bohorok PSC and the conventional PSC partners have the opportunity to acquire a 45% interest in Lion’s unconventional joint study application over a partially overlapping area.
The Bohorok PSC was signed on 20 July 2012 and entitles the partners to explore for and develop conventional oil and gas accumulations. It is
surrounded by oil and gas fields and located close to Medan, Indonesia’s 3rd largest city. The block is operated by Indonesian focused private company Bukit Energy Bohorok Pte. Ltd. with New Zealand Oil & Gas Ltd as co-venturer.
Kim Morrison, Lion’s CEO noted:
‘The synergies from the transaction will result in more efficient exploration and is a key to Lion’s strategy in building a linked conventional and unconventional position in Sumatra. It expands our acreage footprint in the prolific North Sumatran Basin, with Lion already holding a 35% interest in South Block A to the north of the Bohorok area, and the presence of excellent gas markets and existing infrastructure would allow for near-term commercialisation in the event of exploration success. Importantly, this comes at a time when the new Indonesian administration is taking tangible steps to reinvigorate its oil and gas industry”
Source: Lion Energy Ltd