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Lion gains rights to area east of Indonesia

By  AOG Staff Tuesday, 16 May 2017 21:51
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Lion Energy has reached an agreement with Transform Exploration to acquire its joint study rights to an area of over 6500sq km in eastern Indonesia in exchange for issuing 4.8 million Lion ordinary shares.

Lion and Transform have recently completed a joint study over a highly prospective area in eastern Indonesia. By completing the joint study the participants have gained certain rights, including the right to match the highest bid when the area is gazetted by the Indonesian government.

Subsequent to the study’s completion, Lion’s management reached an agreement whereby Lion will acquire 100% of the rights in return for issuing a minimum of 4.8 million Lion shares to Transform or its nominee.

The number of shares payable may increase to a maximum of 8 million shares should Lion raise additional capital within the next twelve months at a price below 5 cents per share, on a pro rata basis with a floor of three cents per share.

Lion CEO Kim Morrison said, “Lion is pleased to acquire 100% of the rights to this exciting area which has significant oil and gas potential in proven play types. The deal is part of our growth strategy in becoming a significant participant in Indonesia’s oil and gas sector”.

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