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Lion Energy Limited (ASX:LIO)

ALERT: Price-sensitive ASX Announcement for LIO
Current share price for LIO : $0.012 0.001 (9.09%)+
Announcement
Release
6 Jan 2026 9:22AM
Price at Release
$0.011
Full Release
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Summary
Lion Energy Limited, through its subsidiary Balam Energy Pte Ltd, has secured funding for drilling in the East Seram Production Sharing Contract (PSC) by executing a farm-out agreement with OPIC East Seram Corporation, a subsidiary of CPC Corporation from Taiwan. OPIC will fund 88% of the drilling costs for the Bula Karang exploration well, set for Q2 2026, and in return, gains an additional 15% participating interest in the PSC. Lion's financial commitment is reduced to 12% of the $5.6 million well cost. The farm-out reduces Lion's financial exposure while retaining significant potential upside through a 45% interest in the PSC. The Bula Karang prospect is strategically located near existing oil fields and infrastructure, poised to deliver early production upon successful discovery, thus potentially extending the PSC term by 20 years.
Key Points
  • Lion Energy signs a farm-out agreement with OPIC securing 88% funding for Bula Karang well.
  • Lion retains 45% interest in the East Seram PSC post-farm-out.
  • The drilling is targeted for Q2 2026, with early oil production potential.
  • OPIC gains an additional 15% participating interest in exchange for funding support.
  • Bula Karang prospect holds a P50 prospective resource of 12 million barrels of oil.
  • The project leverages existing Seram Island oil infrastructure for early commercialization.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.