Lion Energy and Renco spud Amanah Timur-1 well in North Sumatra Basin

Lion Energy is pleased to announce the spud of the exciting Amanah Timur-1 (AMT-1) exploration well, located in the South Block A PSC in the prolific North Sumatra Basin. The well is currently preparing to set 9 5/8” casing at approx. 78m prior to drilling ahead in 8 ½” hole. AMT-1 is expected to take no more than 10 days to drill to total depth of approx. 57 0m KB and evaluate the section. A further 10 days is estimated for the likely test program. Lion has a 40.7% interest in the well and will keep the market informed on material events through the drilling and testing program.

The well-defined Amanah Timur Prospect being tested by the well is situated within a highly-productive hydrocarbon trend and is covered by recently acquired seismic data. The well targets Keutapang sandstone reservoirs which have delivered over 600mmbbl oil, 2.2tcf gas and 50mmbbl condensate in near proximity. Gross recoverable Prospective Resources are estimated to be 2.0 – 4.8 – 10.7 mmboe (P90 – P50 – P10).

The well has an estimated cost of US$1.3 mil (US$0.53 mil net to Lion). This well cost includes provision for up to three production tests. Multiple sandstone reservoirs are being targeted including a shallow objective which had oil production in pre 1930 wells that are in close proximity.

Lion’s CEO, Kim Morrison, noted:

‘The drilling of Amanah Timur represents a key milestone for Lion. We have led the technical effort on this prospect which represents a highly attractive opportunity with near term cash flow potential.’