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Lion joins forces with Bukit Energy and New Zealand Oil & Gas onshore Indonesia

19th December 2014

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 of Indonesia

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 of Indonesia
The transaction creates alignment between parties in the conventional PSC and unconventional rights, which has been encouraged by the Indonesian regulator and will significantly improve efficiency of exploration for both the conventional and unconventional potential of the area. Source: Lion Energy

As part of the transaction, Lion has an option to acquire a 15 per cent interest in the conventional Bohorok PSC; and the conventional PSC partners have the opportunity to acquire a 45 per cent interest in Lion’s unconventional joint study application over a partially overlapping area.

“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,” said Kim Morrison, Lion’s CEO.

“It expands our acreage footprint in the prolific North Sumatran Basin, with Lion already holding a 35 per cent 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.”

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 third largest city.

The block is operated by Indonesian focused private company Bukit Energy Bohorok, with New Zealand Oil & Gas Ltd as co-venturer. The existing PSC holders have recently completed a 206-kilometre 2D seismic survey over the block and interpretation of the data is ongoing. The current plan is to drill a well-defined gas condensate prospect in 4Q-2015.

The transaction creates alignment between parties in the conventional PSC and unconventional rights, which has been encouraged by the Indonesian regulator and will significantly improve efficiency of exploration for both the conventional and unconventional potential of the area.

 

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