Lion Energy Limited

Lion discontinued its hydrogen business after a strategic review, ending its Port of Brisbane lease and selling the equipment for about A$400,000 net. It says partners chose not to proceed with the next phase. Capital now focuses on oil and gas, with Bula Karang-1 spud targeted Q3 2026.

asset acquisition disposition

Indonesia's energy ministry approved the transfer of a 15% East Seram interest to OPIC, completing the January 2026 farm-out. Lion's subsidiary now holds 45% and OPIC 55%; OPIC funds 88% of Bula Karang-1 up to US$5.6m. Resolves the pending approval; spud targeted August 2026.

farm in farm out completion

Lion terminated the Port of Brisbane hydrogen joint development agreement with DGA and Samsung C&T (signed Aug 2024), citing elevated costs and weak demand. The project is held in a holding pattern; focus shifts to Bula Karang-1, with spud expected early July 2026.

material agreement termination

Lion signed a drilling contract with Silver City Drilling for a hydraulic rig, within budget, for Bula Karang-1 (P50 12 mmbbl, 38% chance of success). Land use permit and land sharing agreement secured. Spud still targeted for July 2026.

contract award

2025 net loss was A$5,493,696 (A$1,369,961 in 2024), including a A$3,271,602 impairment on the Port of Brisbane hydrogen project pending funding. Strategy now focuses on the Bula Karang well. Non-Bula sale completion is now expected in 2026.

annual report

Lion signed a farm-out with partner OPIC (CPC Corporation subsidiary): OPIC funds 88% of the Bula Karang well, capped at US$5.6m, and earns 15% more of East Seram. Lion's share is about US$0.7m, and it keeps 45%. Needs Indonesian government approval; resolves the funding thread.

farm in farm out agreement

Lion extended its A$1.6m unsecured, nil-interest convertible notes by a year to 31 December 2026, by issuing new notes and redeeming the old at face value. The conversion price falls to 1.5 cents from 2.7 cents, so conversion would issue more shares.

debt financing

Lion agreed to sell its 2.5% Seram (Non-Bula) PSC interest to Vista Energy for about US$1.2m, with a US$600k deposit received. Completion is expected in 4Q 2025, subject to Indonesian consent. Proceeds go toward the 11.8 mmbbl Bula Karang well in East Seram.

asset acquisition disposition

Lion received about A$3.2m from DGA and Samsung C&T on 30 September 2024, their share of historical costs under the August JDA (A$3.7m total). Lion says the project is now funded; A$6.3m of partner debt follows if construction is agreed.

joint venture update

Lion signed a joint development agreement for the Port of Brisbane hydrogen hub with Mitsubishi's DGA and Samsung C&T, who pay A$3.7m of pre-construction costs for 25% each. On construction they arrange A$6.3m of debt, leaving Lion at 50%. Resolves the long-running JV search.

material agreement

Indonesia granted a four-year extension of the East Seram PSC (Lion 60%) to 16 July 2028, with the area cut to 1,300 km² from 4,557 km². All key prospects (Kobi, Waru, Tanah Baru) are kept. This gives farm-out partners clearer tenure; a farm-out update is expected in 2H 2024.

regulatory community update

Lion raised A$1.6m through convertible notes from three of its largest shareholders, to fund the Port of Brisbane project. Notes carry no interest, mature 31 December 2025 and convert at 2.7c a share. Follows cash of US$2.04m at December 2023.

capital raising announcement

Lion signed a 10-year lease, with a 10-year extension option, at the Port of Brisbane for its first hydrogen hub, resolving the lease talks under way since the March 2023 heads of agreement. Lion says costs are not materially affected. Construction is now guided to Q3 2024, later than Q2, with commissioning by end of 2024.

material agreement

Queensland's planning agency SARA approved the Port of Brisbane hydrogen hub, with conditions, and issued an environmental permit for over 200 tonnes of hydrogen a year. This resolves the pending approval; construction is due to start in Q2 2024, with commissioning in 2H 2024.

regulatory community update

Lion appoints Moyes & Co, who advised on the earlier OPIC deal, to find a partner to take part of its 60% East Seram interest in exchange for a funded exploration well. The process is expected to conclude mid-2024. No partner is yet secured.

farm in farm out agreement

East Seram's three targeted prospects (Kobi, Waru, Tanah Baru) rise 20% to a combined unrisked P50 of 828 mmboe from 675 mmboe. Kobi is the standout (up to 110 km², P50 range 98-1047 mmboe). Lion is advancing a farm-out for a free-carried well.

resource reserve update

Lofin-2 was completed with chrome casing and tubing, and a cleanup flow finished 15 June; the rig is released. An extensive four-rate flow test is next, and the Operator can now talk to potential gas buyers. Lion holds 2.5% of the 1.5 TCF field.

well test result

Interpretation of the new ~200km East Seram seismic confirms all targeted prospects, with closures up to 90 km² and hydrocarbon columns up to 1200m. Pre-survey prospective resource was 675 mmboe unrisked. Lion (60%) has a 20% OPIC carry to a US$10m well cost cap; the resource figure is not yet updated.

resource reserve update

Lion signed a binding agreement to buy a refuelling package and two tube trailers from Fueltech for about US$1.8m, delivery September 2023. It is for the Port of Brisbane hydrogen hub site announced 3 March, advancing the hydrogen plan towards a first build.

material agreement

Lofin-2 clean-up flow reached up to 14.8 mmscfd, with the water leg isolated by a cement plug. Rates are encouraging for the 1.5 TCF field (Lion 2.5%), but this is an early clean-up phase; the multi-rate test and pressure build-up are still to come.

flow test result

Recording of the East Seram onshore seismic survey finished, with 194km recorded and no lost-time incidents, within 10% of the US$7.2m budget. One line in Tanah Baru was skipped over land access. Processing is due Q2 2023, then possible drillable targets.

drilling progress report

Wasco's initial design for Lion's first hydrogen production and refuelling station is complete: 430kg/day, A$12.0m capex, production by 4Q2023. Lion is exploring joint-venture partners and debt funding, but expects no external funding need in 2022. Site not yet secured.

other

Lion appointed Wasco to do front-end engineering and design for its first hydrogen production and refuelling station, due end July 2022. A board investment decision would follow, with completion targeted for early 2H 2023 if approved. Moves the hydrogen plan from studies toward a project.

contract award

Lion's subsidiary signed a contract with BGP for the 200km East Seram onshore seismic survey, targeting five structures with combined 675 mmboe P50 (unrisked). Mobilisation is set for May 2022, finishing by Q1 2023; CPC's OESC pays about 80% of the US$7.25m cost.

contract award

Seram (Non-Bula) partners approved re-entering Lofin-2 for an extended gas test in Q2 2022, at gross cost US$12.3m (Lion ~US$0.3m). It targets the 1,450 Bcf (2C) discovery; this firms up the test earlier flagged as deferred to mid-2022.

drilling scheduled

Lion has firm commitments for A$9.6m at 8c a share, following April's 3.0c raise: A$6.1m placement, A$3.375m convertible notes (12% interest, due Dec 2022) and A$125k from directors. Each share gets a 1:2 option at 12c, subject to shareholder approval. Funds go mainly to hydrogen and working capital.

capital raising announcement

Interpretation of the 664km East Seram seismic lifts Plio-Pleistocene prospective resource (P50) from ~95 to 209 mmboe, up 120%, with 13 offshore prospects and leads (previously 6). PP6 has P50 54 mmboe. Resources are unrisked; PSC area shrinks to 4,557 km2 after 17 July.

resource reserve update

Lion released a green hydrogen strategy and registered the name 'Lion H2 Energy', following the 23 April raise. The roadmap covers an advisory board, site analysis, feasibility work and joint ventures. It is provisional, and Indonesian oil and gas remains.

other

Lion raised A$2.8m at 3.0c per share, with a 1:1 option at 4.0c: A$933k placement, A$1.517m convertible notes (12%, due 31 Dec 2021) and A$350k from directors, the latter two needing shareholder approval. It also starts exploring green hydrogen, a new direction beyond oil and gas.

capital raising announcement

New Miller and Lents report lifts Oseil field 2P reserves 203% to 4.37 MMbbl gross (Lion 2.5% share 0.109 MMbbl). Lofin gas 2C contingent resource is cut to 1,450 Bcf (Lion 36.3 Bcf) from 2,020 Bcf, on a lower recovery factor.

resource reserve update

Offshore East Seram seismic survey finished 9 November: 664km acquired, 22% more than the 545km planned, within the ~US$800,000 budget. Data quality looks good; interpretation is due early 2021. Firm PSC commitment is met once data is processed.

drilling result

Oseil-29 development well in the Seram (Non-Bula) PSC, drilled to 2,321m, is producing about 399 bopd with 168 bwpd of water. PSC output exceeds 2,000 bopd for the first time since March 2018. Lion holds 2.5%.

well test result

March quarter: Indonesian approval of CPC's 40% East Seram farm-in came on 13 April 2020, resolving the open approval thread. Cash fell to US$1.21m from US$1.62m. The Oseil-29 well spudded, and further 10% East Seram farm-out talks continue.

quarterly activities report

Taiwan's CPC (via OESC) signed to take 40% of East Seram, funding 80% of seismic up to US$8.5m and paying about US$0.94m of past costs. Lion expects about US$1.3m cash. Implies about US$8.4m for the remaining 60%. Needs a joint operating agreement and Indonesian approval.

farm in farm out agreement

Lion and Gulf Petroleum mutually terminated the agreement to buy its 16.5% of Seram (Non Bula). Indonesia's government limits sales of over 50% of a stake in the new PSC's first five years. Lion stays at 2.5% but wants more.

material agreement termination

East Seram best-estimate (P50) prospective resource rose 60% to 1,238 mmboe, from 770 mmboe in September, after new onshore and offshore leads were identified. A 500km seismic survey is planned for 2020, and Lion is seeking a well-resourced partner.

resource reserve update

Lion agreed to buy Gulf Petroleum's 16.5% of Seram (Non Bula), lifting its stake from 2.5% to 19%, for US$32m on completion plus US$7.2m and US$4.8m milestone payments. Needs shareholder approval, and funding is not yet secured.

asset acquisition disposition

Initial technical work on the 100%-owned East Seram block identifies 14 prospects and leads with combined P50 prospective resource of 770 mmboe (estimated 60% oil/condensate). These are undrilled estimates; the 500km seismic is the only firm commitment and no wells are required in the first 3 years.

resource reserve update

Following the 20-year Seram extension, Lion lifted Seram 2P reserves 12% to 4.107 mmbbl (100%), 0.103 mmbbl net to Lion's 2.5%. 3C oil contingent resources fell from 17.6 to 10.2 mmbbl. Lofin gas resource is unchanged at 2.02 TCF.

resource reserve update

Lion agreed to sell its 40.7% South Block A interest to Blue Sky Resources for a nominal A$10, keeping a 0.8% revenue royalty capped at US$4.5m. Completion needs Indonesian government approval. Lion says its non-core asset sales are largely complete.

asset acquisition disposition

Lion signed the East Seram gross split PSC with 100% interest, completing the award announced in May. Terms include a US$500,000 signature bonus and low exploration commitments. Lion says Lofin extends into the block, with details to follow.

asset acquisition disposition

Lion raised A$3.09m at 3.5c per share. A placement of 24.2m shares (A$848,500) comes first. Convertible loans from Risco (A$1.32m) and KL Trio (A$921,000) follow, convertible at 3.5c subject to shareholder approval. Risco would hold about 43.5%.

capital raising announcement

The Seram (Non Bula) PSC extension was signed for 20 years beyond October 2019, resolving the renewal thread. Terms include a US$1m bonus and a US$48.9m five-year work commitment, including two Oseil wells. Lion holds 2.5%; Lofin 2C resource is 2.02 TCF.

material agreement

Citic, operator of Seram (Non Bula), reports Indonesia intends to offer a 20-year gross split renewal. Initial terms include a US$1m signature bonus and at least US$48.9m of work over five years. Terms are not final; Lion holds 2.5%.

regulatory community update

Indonesia's energy minister announced Lion was awarded 100% of the roughly 6,500km2 East Seram Block under a gross split PSC. It follows Lion's 2017 joint study. Commercial terms are still to be finalised before the contract is signed.

asset acquisition disposition

Following its strategic review, Lion will focus on buying producing or near-producing assets in South East Asia and keep Seram as its core asset. It plans to sell non-core assets, meaning other conventional exploration and the unconventional studies, and has received interest from several parties.

asset acquisition disposition

Board overhaul: CEO Kim Morrison and Stuart Smith resigned. Tom Soulsby, CEO of Risco Energy (Lion's largest holder per earlier records), becomes Executive Chairman, and Russell Brimage becomes non-executive. A strategic review of assets aims at a production focus, with results due early March.

director officer appointment

The South Block A joint venture (Lion 40.7%) approved the Amanah Timur-2 appraisal well, and the operator signed a rig contract. Drilling now looks set for January-February 2018, later than the September 2017 plan. A dry hole costs about US$345,000 for Lion; a completed and tested well about US$490,000.

drilling scheduled

Lion will go from 50% to 100% of the joint study rights over an Eastern Indonesia area of more than 6,500km2, paying at least 4.8 million shares to Transform Exploration, subject to AGM approval. It could rise to 8 million if Lion raises capital below 5c within twelve months (floor 3c).

asset acquisition disposition

The regulator granted a 4-year extension of the South Block A exploration term to 19 January 2021, following the Amanah Timur-1 discovery that met the firm commitments. The permit shrinks to 421km2 but keeps all prospects; the optional program is up to 3 wells and 50km2 of 3D seismic.

regulatory community update

Amanah Timur-1 was plugged and abandoned at 347m after the stuck pipe could not be freed, so the two deeper targets were never tested. The company calls it a gas discovery in the "700" sand, with appraisal to follow. The block's drilling commitment is now met, avoiding a US$3m gross penalty.

drilling result

Amanah Timur-1 spudded on 3 January 2017, after the December delays. It targets shallow sandstones that produced oil before the 1930s, with gross prospective resources of 2.0-10.7 mmboe. Lion holds 40.7%; the well costs US$1.3m gross (US$0.53m net).

drilling spud

Lion raised A$600,000 before costs from sophisticated investors and management; no issue price is stated. Amanah Timur-1 (Lion 40.7%) is now due to spud 12 December. A Seram lifting of at least 500,000 bbl is expected to bring about US$450,000 net to Lion.

capital raising announcement

Lion's South Block A interest rises from 35% to 40.7% after Lion and operator REE defaulted partner POGI, which held 14%. Lion's extra drilling cost is about US$74,000, adding 6.3 mmboe of best-estimate prospective resource. Resolves the partner-funding uncertainty.

asset acquisition disposition

DeGolyer & MacNaughton put Seram proven (1P) oil reserves at 4.88 mmbbl at end 2015, against 4.75 mmbbl a year earlier. After 1.22 mmbbl of 2015 production this is a 28% increase. The joint venture is suspending further development drilling, including Oseil-23, to maximise cash flow.

resource reserve update

Lion reports Lofin 2C contingent resources of 2,020 bcf gas and 18.25 mmbbl condensate (100% basis), after the Lofin-2 appraisal well; Lion's 2.5% share is 50 bcf and 0.46 mmbbl. PSC extension beyond October 2019 is needed to convert this to reserves.

resource reserve update

Lofin-2 (Lion 2.5%) flowed gas at up to 17.8 mmcfpd from the Manusela limestone, with some water. Results support a gas column of at least 1106m, possibly 1300m. Resolves the open flow-test thread; forward plan is under joint venture discussion.

flow test result

Oseil-27 development well in Seram (Lion 2.5%) is flowing about 600 bopd, lifting field output to about 3,100 bopd (78 net). The regulator approved Phase 3, allowing up to six more wells at 0.4-0.6 million bbl each. Resolves the open Oseil-27 and Phase 3 approval threads.

production update

Lofin-2 reached 5861m with continuing gas and oil shows; pressure data suggest a hydrocarbon column of at least 761m, or 1106m including Lofin-1. Stuck drill string problems mean only a 437m open-hole section will be tested, and deeper testing may not be possible.

drilling progress report

Indonesia's regulator awards Lion two unconventional joint studies: 4,684 km2 in North Sumatra (Lion 55%) and 2,478 km2 in Central Sumatra (Lion 75%), both operated by Lion, about six months each. Resolves the open thread on joint study awards; priority rights to any resulting PSC.

regulatory community update

Lion joins Bukit Energy and New Zealand Oil & Gas in North Sumatra: Lion gets an option on 15% of the conventional Bohorok PSC, while the partners can take 45% of Lion's overlapping unconventional joint study application. Bohorok well planned 4Q 2015.

farm in farm out agreement

Lofin-2 appraisal well in Seram (Lion 2.5%) spudded 31 October 2014, after repeated delays. It targets a 5425m depth to extend the 160m hydrocarbon column found by Lofin-1 in 2012; about 150 days to drill. Lion's costs are covered by production revenue.

drilling spud

Oseil-21 development well is producing about 525 bopd, on budget and 113 ft high to prognosis. Seram output is about 3,000 bopd (75 bopd net to Lion). Follows Oseil-26 success; the rig now moves to the Lofin-2 appraisal, expected to spud late July or early August.

well test result

Seram's Oseil-26 development well is flowing about 490 bopd versus 300 predicted, lifting field output to over 2,800 bopd, up 20%. Oseil-21 spuds this week. Lofin-2 appraisal now expected July 2014. Lion's net share is about 71 bopd.

production update

Lion completed its transformation, raising A$9.5m and converting a A$1.5m note. It now holds 2.5% of Seram, 35% of South Block A and four unconventional study applications over 17,000 km2. Shares relist 22 January 2014.

asset acquisition disposition

ASX will reinstate Lion's shares to quotation on 22 January 2014, with 73,591,805 shares quoted, after it met Chapters 1 and 2. This ends the suspension that began 12 December 2013.

listing compliance notice

Kim Morrison became CEO, with Chris Newton and Tom Soulsby as non-executive directors, from 10 January 2014. Weidong Zhang and Simon Reeve step down on 16 January. The public offer closed with 10m shares issued at 20c. Reinstatement update due the week of 20 January.

director officer appointment

Lion issued 69,028,361 shares and 3,666,667 options at 26c on 10 January 2014, completing the Risco/Tower placements at 20c (37.5m shares), the A$1.5m loan conversion, and the KRX and AMI acquisitions. Also 1,835,041 shares for cancelling 88.1m old options.

capital raising announcement

At Lion's request, its shares and options were suspended from 12 December 2013 pending the general meeting on the change of activities. They stay suspended until Lion completes the transactions and re-complies with ASX Chapters 1 and 2.

listing compliance notice

All 14 resolutions at the 12 December general meeting passed on a show of hands, with proxy votes heavily in favour. This clears the 8-to-1 consolidation and the Risco, Tower and KRX transactions, resolving the main open thread.

agm notice

Notice of general meeting on 12 December 2013 to approve the Risco/Tower/KRX transactions and the consolidation. The independent expert finds the Resolution 3 transaction fair and reasonable, and Resolutions 5, 7 and 9 not fair but reasonable. Trading reinstatement targeted 22 January 2014.

agm notice

Lion's re-compliance prospectus offers 10m shares at 20c to raise A$2m, plus up to 1,890,831 shares for cancelling listed options (1 per 48). Conditional on a general meeting around 2 December 2013 approving the 8-for-1 consolidation and the Risco deal.

capital raising announcement

Lion signed formal agreements for the Risco/Tower deal, restated post a 1-for-8 share consolidation: A$7.5m placements at 20c (Risco A$6m, Tower A$1.5m), A$2m public offer, KRX buyout for 11.6m shares, and the A$1.5m convertible loan. Replaces the June pre-consolidation terms.

material agreement

Lion updates the June Risco deal: ASX requires re-compliance with listing rules Chapters 1 and 2. Added terms: A$260,000 of loans/fees converting to 10.4m shares, a listed-option buyback, Risco's 6-month right to negotiate buying Lion's Seram interest, Tower AMI purchase for 34.2m shares, and board changes.

material agreement

Lion signed binding deals with KRX and Risco: a A$1.5m convertible loan, a A$2.5m placement of 100m shares to Risco (2.5c each), up to 80m shares to investors, and 39.9m shares for Risco's AMI interest. Lion also plans to buy the rest of KRX for 93m shares. Risco could reach about 48%. The earlier terms sheet lapsed.

capital raising announcement

Lion signed a non-binding terms sheet to buy the rest of KRX, which it part-owns at 30.77%, for 75,000,300 new Lion shares, plus a placement of at least A$1m. KRX holders would rise from 20.13% to up to 45.58%. Lion would lend KRX up to A$2m.

business combination

Lofin-1 was suspended with four cement plugs after a stuck testing packer could not be recovered; Sproule is to deliver a reserve evaluation in February 2013. The well's final test was 15.7 MMscfD gas plus 171 bpd condensate. The rig moves to Oseil-1ST, a development well. Lion holds 2.5%.

drilling result

Lofin-1 sidetrack's four-rate test reached 15.7 MMscfD of gas plus 171 bpd of oil/condensate, with pressures and rates still rising as the well cleans up. More than double the earlier 6.9 MMscfD rate; maximum potential not yet reached. Lion holds 2.5%.

flow test result

Indonesian government approved KRX's 35% transfer in the South Block A licence in Sumatra, resolving the pending approval. Lion holds 30.77% of KRX and has the right, not obligation, to reach 57.14% by funding a further A$2m. Seismic planned Q4 2012.

farm in farm out completion

After acid treatment, Lofin-1 sidetrack flowed wet gas at a stabilised 6.9 MMscfD, though restricted by surface equipment limits. Earlier tests showed no flow. This turns the long-troubled well into a gas discovery; reserve estimates for gas are being prepared. Lion holds 2.5%.

flow test result

Lion-funded KRX farm-in to a 35% interest in the 2,105 sq km South Block A licence in Sumatra, Indonesia. KRX pays 49% of cash calls up to US$3.92m. KRX estimates un-risked potential of 87-475 million barrels of oil. Delivers the first asset under the KRX deal; subject to government approval.

farm in farm out agreement

Lion signed an interim term sheet with Singapore-based KRX Energy to fund its SE Asian oil and gas push. Lion commits A$1m for shares at 5c, giving 30.77% of KRX, plus a right to fund further over 36 months. Starts a new strategy after the buy-back; funded from cash.

material agreement

Lofin-1 reached 4,093.9 m, then took a high-pressure kick and the open hole packed off, leaving drill pipe stuck. The well was killed and cemented; a sidetrack is being prepared to reach the Manusela target. Lion holds 2.5%. Setback to the earlier hopeful drilling progress.

drilling progress report

Ling Gu and Jian Wu ceased to be substantial holders on 27 February through the selective buy-back, which they gave up 5,987,080 and 7,058,296 shares in. This indicates the buy-back was completed that day; they received a share of US$200,000, Lion Nanning and the debt assignment.

asset acquisition disposition

Chairman Jian Wu resigned as a director on 21 February, after the buy-back vote. Russell Brimage becomes Executive Chairman. Simon Reeve, an oil and gas services executive and petroleum engineer, joins as non-executive director.

director officer appointment

All nine resolutions at the 17 February general meeting passed, including the selective buy-back, which had a large vote in favour (68,996,719 for, 1,979,706 against). This clears the restructure despite the expert's not fair, not reasonable view. It also covers the placements and the underwriter options.

agm notice

Lofin-1 exploration well spudded on 17 January 2012 on Seram, expected to take about 120 days to drill and test. Targets the same Manusela limestone as Oseil. Estimated 82 million barrels recoverable (company estimate); Lion holds 2.5%.

drilling spud

Special meeting on 17 February 2012 to approve buying back 61,734,292 shares from six shareholders, who receive US$200,000 and 100% of Lion Nanning. The independent expert found it not fair nor reasonable to non-participating shareholders. Also ratifies a 14.17m-share placement at 2c.

business combination

Lion offers a 1-for-2 rights issue at 2 cents, up to 54,333,909 shares to raise about $1.09m, with a free attaching option per share. Pendulum Capital underwrites and receives 4,000,000 fee options. Share price was about 3c in mid-2011.

capital raising announcement

Operator CITIC expects to spud the Lofin-1 exploration well on Seram in early January 2012, about 56 km west of Oseil. Estimated 412 million barrels in place, 82 million recoverable (company estimate). Lion holds 2.5%.

drilling scheduled

Lion will not proceed with buying 38% of the Qinghai solar project (CNY38m, about A$6m). ASX ruled the shares were a 'classified asset' under Listing Rule 10.7, so payment would have to be restricted securities, which the agreement does not allow. Ends the November 2010 plan.

material agreement termination

ASX suspended Lion's shares on 16 November after the solar announcement. They are due to resume trading on 17 November unless ASX decides otherwise. If shareholders approve the change of activities, suspension would follow until Lion re-complies with listing rules.

listing compliance notice

Lion will pursue buying 38% of Qinghai First New Energy, a planned 1000MW solar thermal plant, for CNY38m (about A$6m), from a company controlled by substantial holder Yuda Chen. It needs shareholder and ASX approval and would force relisting compliance. Reverses the earlier denial of any solar link.

material agreement

Lion's subsidiary registered a new China company, Qinghai First New Energy, to investigate new energy opportunities. About $3.5m is to be moved there and held as cash in China. Continues the search for new businesses; no project is named.

other

Lion received A$4,415,800 in cash from the Papua Petroleum sale, so the Talisman sale has completed. A$383,983 stays in escrow as holdback. This ends Lion's exposure to the Sasol-farmed PNG licences.

asset acquisition disposition

Lion agreed to sell its 19.199% Papua Petroleum stake to Talisman Niugini for A$4.80m, against the A$3m paid in June 2008. A$4.42m is due at completion and A$384k is held back. Completion depends on audited accounts by 15 January 2010.

asset acquisition disposition

March quarter: Seram output fell to 243,650 barrels (2,707 bopd). The company calls Nief Utara A and East Nief-1 results disappointing; A-2 and A-3 were not commercial. The A prospect's oil in place estimate was cut from 42 to 36 MMbbl.

quarterly activities report

Neif Utara A-1 began producing 17 August 2008, now about 420 bopd, below its 640 bopd test. A-2 found the water contact, so reserves were trimmed to 12.3 MMbbl from 12.5; it tested 372 bopd at 12% water. Dawang-1 hit a potential gas zone and is suspended.

drilling result

Lion issued 33,571,400 shares at 6c on 27 August 2008, raising about $2.01m of the up to $3.66m sought. Shares on issue rise to 94.49m, with 31m options expiring August 2011.

capital raising announcement

Papua Petroleum completed farmouts to Sasol, which will spend US$11.8m to earn 51% of licences PPL 285-288. Lion's 19.49% holding in Papua Petroleum gains a funded drilling partner, though Lion's own licence option has lapsed.

farm in farm out completion

Papua Petroleum told Lion it met certain capital-raising conditions, so Lion's right to acquire a 10% or 50% interest in the PPU licences no longer exists. Only the 19.49% share stake bought in June remains.

material agreement termination

Lion launched a 1-for-1 non-renounceable rights issue of up to 60.9m shares at 6c, raising up to about $3.66m. Closes 19 August 2008. This follows the A$2.1m director loan used for the Papua Petroleum stake; use of funds is not shown in the extract.

capital raising announcement

Lion agreed to buy 19.49% of Papua Petroleum for A$3m from a Liquefied Natural Gas Limited subsidiary, with options on 10% or 50% of its PNG licences. A$2.1m is funded by an interest-free loan from a director, a move into PNG exploration.

asset acquisition disposition

Neif Utara A-1 reached 7,315 feet and flowed about 640 bopd on pump with under 1% water, and was suspended as a future producer. Estimated reserves rose to 12.5 million barrels from 10.2. Appraisal well A-2 spudded on 19 May 2008.

flow test result

Neif Utara A-1 spudded on 28 February 2008 on the Seram block, targeting the Manusela Carbonate. Estimated reserves are 10.2 million barrels; well cost is US$6.33m, with Lion's 2.5% share expensed. This is the first Seram exploration well since the Gulf failure.

drilling spud

At the 27 November 2007 AGM, the diversification into a general resources company passed on a show of hands. The name change to Lion Group International was withdrawn and not put to the meeting. Other resolutions passed.

agm notice

Lion sold its Gulf of Mexico subsidiary to Sterling Grant on 9 November 2007, ending its five-lease interest after the dry SMI 138 well. It keeps 50% of any future proceeds until sunk costs are recovered, and writes off about US$1.277m.

asset acquisition disposition

September quarter: Seram output fell again to 362,679 barrels (3,942 bopd). Directors now want to sell or farm out the Gulf of Mexico leases quickly, with an interested party in talks, and are investigating a China refinery, a shift from exploration.

quarterly activities report

Notice of the 27 November 2007 AGM. Beyond routine items, shareholders vote on diversifying from an oil and gas company into a general resources company, and on renaming it Lion Group International Ltd. The auditor is also to be changed to Bentleys MRI Perth.

agm notice

The SMI 138 #1 well reached 3,628 metres and was plugged and abandoned, as analysis found no commercial hydrocarbon sands. This is a dry hole for Lion's first Gulf of Mexico well, in which it held a 30% interest. It leaves the other four leases.

drilling result

The South Marsh Island 138 #1 well spudded 6 January 2007 after weather delayed the rig from 27 December. Lion is earning 30%, targeting 6 to 10.1 million barrels of oil at up to 3,627 metres.

drilling spud

Lion has received the drilling budget for the first South Marsh Island 138 well, which targets 6 to 10.08 million barrels of oil. It would earn a 30% interest, with rig mobilisation expected within 10 days and about 35 days to drill. It is Lion's first activity outside Indonesia.

drilling scheduled

CITIC Seram granted Lion's subsidiary a put option to sell its 2.5% Seram interest for US$4,774,510, exercisable within three months of 2 November 2006. Lion cites uncertainty over the direction under CITIC's operatorship. This advances the stay-or-sell decision.

material agreement

After the AGM, Weidong Zhang (non-executive) and Zhong Wang (executive director and CFO) joined the board. Martin Bennett resigned, and the office moved to 15 Rheola St, West Perth. Jian Wu stays chairman.

director officer appointment

The full 3,046,124,356 rights issue shares were issued on 20 October 2006, doubling shares on issue to 6,092,248,712. This completes the $10.66m raise to fund the Gulf of Mexico push.

capital raising announcement

Rights issue closed raising only $1,729,526 from 494,150,166 shares taken up by shareholders. The remaining 2,551,974,190 shares (about $8.9m at 0.35c) fall to the underwriter or sub-underwriters, as the offer is fully underwritten.

capital raising announcement

Jian Wu, a Chinese petro-chemical refinery founder, was appointed director and Chairman on 3 October 2006. Russell Brimage stays as an executive director, so he is no longer chair.

director officer appointment

Participation Agreement signed 18 Sept lets Lion's US subsidiary farm into Gulf of Mexico leases, a condition of the rights issue. Ridgelake Energy is to receive options, subject to shareholder approval.

farm in farm out agreement

Prospectus for a one-for-one rights issue at $0.0035 per share, raising up to about $10.66m, to fund Lion's share of drilling five Gulf of Mexico leases. This is a strategy shift towards US exploration, with an independent report supporting the prospects.

capital raising announcement

June quarter output rose to 446,270 barrels (4,904 per day) after Oseil-11 came online 12 June, ending Phase II drilling. Operator KUFPEC is selling 51% to CITIC for US$97.4m and 16.5% to Gulf Petroleum for US$44.5m.

quarterly activities report

Lion, suspended since 3 Aug 2005, says its board has been replaced (Brimage chair/CEO, Garner, Bennett) and its 2.5% Seram (Non Bula) interest is back in good standing after US$1.32m of cash calls. Bula PSC was sold for US$4.85m.

other