Lion Energy offered a farm-in opportunity in the newly awarded East Seram block, located in onshore/offshore Seram island, in late May 2018. The block has been officially awarded to Lion Energy (100% interest and operator) on 2 May 2018, as one of the four Direct Offer blocks offered in the Conventional Oil and Gas Bidding First Round 2018. Upon PSC signing, the block will follow the Gross Split fiscal terms. According to local media reports, official signing of the four blocks is expected in early June 2018.  The official contract signing for the East Seram block will require payment of a Signature Bonus of USD 500,000. Firm commitments for the first three years of exploration consist of 500 km 2D seismic acquisition.  The 6,500 sq km East Seram block is located in the Seram Basin, a structurally complex area with major structural highs related to the Seram Fold Belt. Historically, oil and gas seeps have also been identified. The basin is estimated to contain approximately 60 MMbo and 2 Tcf of gas.  According to Lion Energy, the East Seram block contains several leads with potential carbonate reservoirs in the Jurassic Manusela Formation, analogue to the producing Oseil field and to the Lofin 1ST1 discovery in the adjacent Seram (Non-Bula) PSC. The Manusela reservoirs are estimated to bear significant gas volumes, at depths between 1,500 and 5,000 m. The Lofin discovery is estimated to contain approximately 2 Tcfg from a 1,300-m gas column.  The block is also expected to provide shallow oil potential in the offshore extension of the mature Bula Fields play, within Pleistocene sands of the Fufa Formation.  Lion Energy holds a 2.5% participating interest in the adjacent block, the Seram (Non-Bula) PSC, operated by CITIC Resources.  For further information on this opportunity, interested parties may contact:  Tom Soulsby  Executive Chairman  tsoulsby@lionenergy.com.au    Background Information  The East Seram block was offered on 19 February 2018 under the Conventional Oil and Gas Bidding First Round 2018, under the Direct Offer mechanism. The block covers an area of 6,504 sq km, the majority of which onshore in the eastern Seram Island, with a small portion located offshore. The block is surrounding the Seram (Non-Bula) PSC operated by CITIC Resources. Wells located within the block boundary are Wahai 1 (new field wildcat, shelf), Wahai 2 (new field wildcat, onshore), Ceram B 1X (new field wildcat, water depth of 115 m) and Belis 1 (new field wildcat, onshore). Other onshore wells located near the eastern side of the shore area (within the Seram (Non-Bula) PSC) are, Metafoten 1, Salas 2, and Salas Barat 1. These three wells are situated in the Seram (Non-Bula) PSC.  On 2 May 2018, Indonesian Ministry of Energy and Mineral Resources announced the winners for four blocks offered in the Conventional Oil and Gas Bidding First Round 2018 under the Direct Offer mechanism. The blocks and respective winners are the following: Citarum (consortium of PT Cogen Nusantara Energi and PT Green World Nusantara), East Ganal (Eni), East Seram (Lion Energy), South East Jambi (consortium of Talisman - a Repsol subsidiary - and MOECO). The official announcement was made during the Opening Ceremony of the 42nd Indonesian Petroleum Association (IPA) Exhibition and Conference in Jakarta. Only one Direct Offer block, East Papua, did not receive any bid.
Lion Energy offered a farm-in opportunity in the newly awarded East Seram block, located in onshore/offshore Seram island, in late May 2018. The block has been officially awarded to Lion Energy (100% interest and operator) on 2 May 2018, as one of the four Direct Offer blocks offered in the Conventional Oil and Gas Bidding First Round 2018.