Lion Energy Limited (ASX: LIO), an ASX-listed oil and gas exploration and production company with a new green hydrogen business and two conventional Production Sharing Contracts (PSCs) in Seram Island, Indonesia, has released its quarterly report for the period from July 1 to September 30, 2025. The company is also working to build Southeast Queensland’s first commercial-scale green hydrogen production and distribution hub. The report highlights progress on its Port of Brisbane (PoB) Green Hydrogen Project and advancements in its East Seram PSC drilling plans.
Regarding the PoB Green Hydrogen Project, Lion Energy intends to apply for grant funding from the Australian Renewable Energy Agency (ARENA) to further the project. The company has resolved to limit spending on the project until ARENA funding is secured. Significant progress has been made on the East Seram PSC, with commercial terms for farm-in to secure funding for drilling the Bula Karang-1 prospect now finalised. Key drilling personnel have been hired, and a successful scouting trip to East Seram was completed for Bula Karang-1 planning.
Lion Energy also announced a strategic sale of a 2.5% interest in the Seram (Non-Bula) PSC for US$1.2 million on September 4, 2025. According to Lion, this sale removes the company’s exposure to a significant exploration and development commitment program, particularly with declining oil production. However, Lion retains exposure to the 1.5 TCF Lofin Gas Field, which is interpreted to extend into Lion’s operated East Seram PSC.
Tom Soulsby, Lion’s Executive Chairman, noted that progress in the hydrogen business was moderated this quarter while the company seeks necessary government grants. He also mentioned significant progress in planning for drilling the Bula Karang prospect in the East Seram PSC, with funding arrangements expected to be announced shortly. The company was pleased to report the strategic sale of its 2.5% interest in the Seram (Non-Bula) PSC.
