News: Lion Energy signs up partners for unconventional oil and gas exploration

Lion Energy (ASX:LIO) has agreed with New Zealand Oil and Gas (ASX:NZO, NZE:NZO) and Bukit Energy to jointly evaluate unconventional oil and gas acreage in North Sumatra, Indonesia.

As part of the agreement, Lion has an option to acquire a 15% interest in the conventional Bohorok production sharing contract.

In return, NZOG and Bukit have can acquire a 45% interest in Lion’s unconventional joint study application over a partially overlapping area.

The existing PSC partners have recently completed a 206 kilometres 2D seismic over the block and plan to drill a well defined gas-condensate prospect in the fourth quarter of 2015.

The conventional Bohorok PSC is located in the southern part of the North Sumatra Basin, which has discovered reserves of 25 trillion cubic feet of gas and 1.6 billion barrels of oil.

It contains a number of attractive prospects which were evaluated with the 2014 seismic survey.

The key targets are analogous to surrounding oil and gas fields and close to existing infrastructure.

The PSC is in an attractive operating area and the proximity to Medan, Indonesia’s third largest city, provides a ready gas market.

Lion holds rights to an unconventional joint study application dated 7 May 2012 that covers about 5000 square kilometres in the area of the Bohorok PSC.

Preliminary evaluations indicate highly prospective gas and liquids potential in a number of unconventional plays.

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