Lion Energy looks past Indonesia, takes up stake in Asia focused private company

19-Jun-2012 Intellasia | Proactive Investors | 7:01 AM

Lion Energy (ASX: LIO) has made a strategic investment in South East Asia focused private company KRX Energy, giving it exposure to further projects beyond its core Indonesian assets.

The company has committed to subscribing for 20 million KRX shares priced at A$0.05 each, giving it a 30.77 percent interest in KRX.

This gives KRX a A$1 million capital boost and gives Lion the right over the next 36 months to fund ongoing activities as it deems appropriate.

KRX has reached an agreement with existing joint venture parties to acquire a 35 percent working interest in a North Sumatra production sharing contract that has both conventional and unconventional potential within a 2105 square kilometre area.

It is also bidding for an offshore block in the South China Sea that contains high impact plays and attractive structures with unrisked potential in the range of 0.5 to 2.7 billion barrels of oil or 1 to 7 trillion cubic feet of gas.

KRX has also taken the lead technical role in a joint study with some major partners of the unconventional gas/oil potential in West Indonesia. This has already resulted in three applications been lodged.

http://www.proactiveinvestors.com.au/companies/news/30203/lion-energy-looks-past-indonesia-takes-up-stake-in-asia-focused-private-company-30203.html