Lion Energy Limited (ASX: LIO), an oil and gas exploration and production company primarily focused on projects in Indonesia, has reported a robust cash position at the close of the quarter ending 30 September 2026. The company concluded the period with $2,283,000 in cash and cash equivalents. This improved financial standing was largely driven by significant cash inflows from investing activities, successfully offsetting ongoing net cash outflows from operating activities.
During the quarter, Lion Energy recorded net cash used in operating activities totalling $479,000. This primarily stemmed from payments for production of $153,000, staff costs amounting to $211,000, and administration and corporate costs of $210,000. These outgoings were partially offset by receipts from customers totalling $95,000. In contrast, investing activities generated a substantial net cash inflow of $1,925,000. Key contributors to this positive figure included $1,362,000 from the disposal of entities and $717,000 from the disposal of property, plant, and equipment, which helped to offset $154,000 spent on exploration and evaluation.
The company’s financing activities did not result in a net cash flow for the current quarter. Lion Energy maintains a convertible note facility with a total face value of $1,600,000, which is fully drawn. This unsecured facility carries a nil interest rate and has a maturity date of 31 December 2026, with conversion optional for holders at 1.5 cents per share. Based on its current cash position and relevant outgoings, Lion Energy estimates it has approximately 3.61 quarters of funding available for its operations.
