Oz Lion Energy Ups Stake in Indonesia PSC
Australia-listed Lion Energy entered into an agreement to acquire Gulf Petroleum Investment Company’s 16.5% stake in the Seram Non-Bula production sharing contract, located on Seram Island, Indonesia.
Post the deal, which is valued at US$44mn, Lion’s share in the PSC will increase to 19%, it said December 12. The PSC contains the Lofin gas discovery which contains 2C contingent resources of 2.02 trillion ft3 of gas and 18.2mn barrels of condensate and the Oseil oil field which has remaining reserves of 4.1mn barrels.
Lion said it will capture, on a net basis, additional 2C contingent resources of 333bn ft3 gas and 3.02mn barrels of condensate, and 0.7mn barrels of 2P oil reserve. It will make an upfront payment of US$32mn upon completion of the transaction. In addition, Lion has an obligation to pay contingent considerations against milestones of US$7.2mn upon full field plan of development approval and another US$4.8mn upon first gas production.
Lion is in discussions with various parties and is considering various funding options. “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,” executive chairman Tom Soulsby said.
In addition to Lion’s 19% interest, CITIC Seram Energy (operator) has 41% interest; Petro Indo Mandiri (30%) and GHJ Seram Indonesia (10%) hold the remaining stake.