Lion Energy shifts focus to production, SE Asia

Published at Mar 29, 2018, in Energy

Lion Energy Limited (ASX:LIO) has today announced its decision to focus its resources on acquiring oil and gas producing, or near-term production, assets in south-east Asia.

At the same time, the company plans to dispose of current assets that it now considers non-core. The decisions were made as part of an internal strategic review of LIO’s portfolio.

In keeping with the shift in strategy, the company will retain its Seram PSC core production and cash flow asset and plans to further build its portfolio via acquisition of, or farm-in to, additional interests in producing assets, in particular in SE Asia.

LIO intends to pursue operatorship in any new ventures where possible, and expects that initial opportunities for acquisition of, or farm-in agreements for, assets will focus on Indonesia where LIO can leverage the executive teams and networks it already has in-country.

In the announcement the company defined non-core assets as “those that the company consider higher risk conventional exploration and unconventional assets, specifically all other conventional assets and the unconventional inventory of completed joint studies and joint studies in process, other than any joint study in process considered complimentary to core assets either held of being considered”.

Following initiatives that came out of the strategic review, LIO has received expressions of interest from several parties in the non-core assets and will be initiating a negotiation process in the near-term.

However, it is an early stage of this company’s development and if considering this stock for your portfolio you should seek professional financial advice.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.