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Lion Energy Limited (ASX:LIO)

ALERT: Price-sensitive ASX Announcement for LIO
Current share price for LIO : $0.012 0.002 (20%)+
Announcement
Release
29 Jun 2026 8:28AM
Price at Release
$0.010
Full Release
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Summary
Lion Energy Limited announced that the Indonesian Government has approved the transfer of a 15% Participating Interest in the East Seram Production Sharing Contract (PSC) from its subsidiary, Balam Energy Pte Ltd, to OPIC East Seram Corporation. This approval finalizes the Farm-Out Agreement, allowing Lion to hold a 45% interest while OPIC holds 55%. OPIC will fund 88% of the Bula Karang-1 well's cost up to a cap of US$5.6 million. The Bula Karang prospect, estimated to hold 12 million barrels of oil, will be drilled in August 2026 from an onshore location targeting an offshore area, leveraging existing infrastructure for rapid commercialization if successful. This farmout significantly reduces Lion's financial exposure while retaining substantial potential benefits from the project.
Key Points
  • Indonesian Government approved the farmout of the East Seram PSC.
  • Lion Energy's subsidiary Balam Energy transfers 15% interest to OPIC.
  • Lion retains 45% interest, OPIC holds 55% in the PSC.
  • OPIC to fund 88% of the Bula Karang-1 well cost up to US$5.6 million.
  • Bula Karang prospect estimated to hold 12 million barrels of oil.
  • Drilling planned from onshore location for August 2026.
  • Farmout reduces Lion's financial exposure, retains potential benefits.
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.