Lion Energy Limited (ASX: LIO), an ASX-listed oil and gas exploration and production company primarily focused on its Indonesian portfolio, has announced significant operational advancements and a strategic financial boost. The company is actively progressing the Bula Karang-1 exploration well, with rig mobilisation now underway, and has successfully finalised the sale of its Seram (Non-Bula) Production Sharing Contract (PSC) interest, bolstering its financial position.
Preparations for the Bula Karang-1 well are largely complete, with key approvals secured, well pad and access road works finished, and all major drilling and support service contracts in place. Drilling equipment quality assurance and quality control have been finalised, leading to the commencement of rig mobilisation. The well is now scheduled to spud on 10 November 2026, with drilling and evaluation expected to conclude by early December. Lion retains a 45% interest in the East Seram PSC, with OPIC funding 88% of drilling costs up to a US$5.6 million cap. The prospect holds a best-estimate (P50) prospective resource of 12 million barrels of oil and an estimated geological chance of success of 38%.
The company also confirmed the completion of its 2.5% indirect interest sale in the Seram (Non-Bula) PSC, with the balance of approximately US$0.97 million (AUD$1.39 million) now received. This divestment has strengthened Lion’s funding for its share of Bula Karang-1 drilling costs, including expenditure above the OPIC funding cap for the approximately US$6.7 million estimated well cost. Furthermore, Lion Energy has continued its strategic transition to a focused upstream oil and gas company, exiting its hydrogen business and concentrating resources on its Indonesian assets. As of the end of the quarter, Lion held AUD$2.3 million in cash.
