Highlights
- Lion has executed a farm-out agreement with existing partner OPIC East Seram Corporation (“OPIC”), a 100% indirect subsidiary of Taiwan based CPC Corporation, who will fund 88% of the drilling cost for the Bula Karang exploration well – due to be drilled in 2Q 2026
- In exchange, OPIC will earn an additional 15% participating interest in the East Seram PSC
- Lion’s net funding obligation will be 12% of the US$5.6 million well cost estimate (US$0.7 million), and post-well, it will hold a 45% interest in the PSC
- Recent US$1.2 million sale of Lion’s stake in Seram Non-Bula underwrites Lion’s funding obligations for the Bula Karang well
- The Bula Karang prospect, located close to the 20mmbb Bula Oil Field, hosts a P50 prospective resource1 of 12mmbo with the exploration well designed to allow early production in the event of success
- The offshore Bula Karang target is planned to be drilled from land – substantially reducing the estimated well cost
- Seram Island in Indonesia is well serviced by oil and gas infrastructure with refining, storage and export facilities situated near the target area
East Seram PSC with key prospects highlighted
Mr Tom Soulsby, Lion’s Chairman, commented:
'The farm-out of the East Seram PSC to OPIC, a trusted and supportive subsidiary of Taiwan-based CPC Corporation, represents a great outcome for Lion. We now look forward to planning for and proceeding towards the drilling of a well to test the Bula Karang oil prospect. This well has the potential to be a game-changer for Lion, with numerous follow-up prospects high-graded in event of success. With the recent divestment of Lion’s minority interest in the Seram Non-Bula PSC, the company is pleased to have secured both funding and a substantial interest in this high-impact exploration event'
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Source: Lion Energy
