Lion Energy signed a farm-out agreement for the transfer of a 40% participating interest in the East Seram PSC, located in onshore/offshore North Seram Basin, to Taiwan's CPC Corporation (via subsidiary OPIC East Seram Corporation), on 25 September 2019.  OPIC has agreed to the following:    Pay 80% of Lion's historical costs      in the block until 31 August 2018 (approximately USD 0.94 million) and its      40% share of the performance bond collateral (USD 0.15 million).  Fund 80% of seismic cost, capped to      USD 8.5 million, towards exploration commitments in the block. Any      additional seismic cost will be allocated on the basis of participating      interest.  Fund its 40% share of all other      joint venture costs, starting from 1 September 2018, under a Joint      Operating Agreement (JOA) to be agreed upon.  Carry 20% of Lion's drilling cost      for any follow up exploration well in the block, repayable from future      production.   According to Lion, the above financial terms imply an approximate value of USD 8.4 million for the remaining 60% interest in the block. Upon signing of the JOA, Lion will receive a cash amount of approximately USD 1.3 million (inclusive of OPIC's 40% share of joint venture costs since 1 September 2018).  The deal is subject to government approval and to signing of the JOA. Upon completion, participants in the block will be Balam Energy Pte Ltd (a wholly-owned subsidiary of Lion) with 60% operating interest, and OPIC East Seram Corporation (a wholly-owned subsidiary of CPC) with 40%. Lion initially offered a farm-in opportunity for the block in May 2018, shortly after the official award.  The main exploration targets in the area are Jurassic Manusela Formation carbonates and Pliocene Fufa Formation sandstones. The operator estimates unrisked prospective resources (P50) of 1,238 MMboe in the block, from a total of 18 prospects and leads. Key leads and prospects will be further delineated by a 500-km commitment seismic survey planned in 2020.  CPC Corporation is a Taiwan-based company which focuses on natural gas, petrochemicals and gasoline. The company holds upstream interests in Taiwan, Australia and Africa. In Indonesia, the company was holding a 16.67% participating interest in the Sanga-Sanga PSC until 2018, when the contract expired and the block was awarded to Pertamina.  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. Lion Energy was announced as the winner for the East Seram block on 2 May 2018. The gross split contract was signed on 17 July 2018, with Signature Bonus amounting to 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 discovered to date (2019). According to Lion, the analogy with fold belt plays in other regions indicates significant upside potential in the Seram Basin.  The majority of the block area is located onshore in the eastern Seram Island, while a small portion is 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.  Two main plays have been proven in the area: a Mesozoic fold belt play, centered on carbonate reservoirs of the Jurassic Manusela Formation, and a shallow Plio-Pleistocene foreland play, with clastic reservoirs in the Fufa Formation.
Lion Energy (-> 60%, op.) had signed a Farmout Agreement with CPC Corp, through wholly owned subsidiary OPIC East Seram Corp, for the latter to acquire a 40% non-operating working interest in the on/offshore East Seram GSPSC.