Lion Energy
Corp. (the "Company" or "Lion Energy")
(TSX.V - LEO) is pleased to provide an update on the Company's planned 2011
exploration activities and capital budget.
With recent
amendments to the Company's working interests subsequent to closing of the
Amended Farmout Agreement with Africa Oil Corp on January
26, 2011 as well as additional interest picked up in the Kenya Block 9
concession, announced by the Company in its news release dated January 24,
2011, the following table sets out the Company's current un-promoted working
interests in East Africa and budget expectations for 2011:
Kenya
|
Working Interest
|
Budget
|
Block 9
|
33.3%
|
$2.5MM
|
Block 10BB
|
10%
|
$2.6MM
|
Puntland
|
|
|
Dharoor
|
15%
|
$4MM
|
Nugaal
|
15%
|
$4MM
|
As a result
of the amended terms of the Farmout Agreement and
recent asset sales, the Company has a current cash position of $19MM. In
addition, the Company has other assets in the form of 10MM Encanto Potash shares and 2.5MM Africa Oil shares that
could be sold to fund ongoing operations. The Company now has sufficient
capital to meet all its future work commitments related to the Farmout Agreement with Africa Oil and additional capital
to participate in other new exploration ventures.
John Nelson,
President and CEO states "It is expected that 2011 will be a year of
growth and progress for Lion Energy as an well-funded emerging oil and gas
exploration company focused on Africa. Seismic, airborne geophysics and
drilling programs are on-going in all the blocks held by the company. We have
Tullow Oil and Africa Oil as solid technical
partners well experienced in east Africa rift basin exploration and
operations. The Company looks forward to an exciting couple years of
exploration and possible discovery on the diversified assets we currently
hold in East Africa."
Kenya Block
10BB
In addition
to ongoing continuous geological and geophysical field work and geochemical
studies, an aggressive exploration campaign will continue through 2011 focused
on three main activities: FTG, 2D seismic interpretation and exploratory
drilling.
FTG surveys
will be undertaken on the block to assess the overall prospectivity
of the Tertiary rift play. FTG is an airborne, high resolution gravity
mapping tool which has been successfully utilized in the Lake Albert area of Uganda
by Tullow, where gross discovered resources are
over 2 billion barrels of oil. This technology will be utilized to provide
basement structure and faulting, reduce uncertainty between the structural
configuration within and between Blocks and to delineate structural
continuity and interpolation between widely spaced 2D seismic grids.
Exploratory
drilling is expected to commence in Block 10BB during Q3 2011 with one well
planned for the year. Current activities are focused on interpreting the
610km of 2D seismic data which was acquired during 2010, integrating this
data with the legacy seismic data on the Block and newly acquired FTG data
and finalizing the prospect and lead inventory. Environmental impact
assessments have been completed over four potential drill sites and
Government permits have been issued. The prospect and lead inventory which
will be generated during 2011 will be carried forward into 2012 where
exploratory drilling operations are expected to continue.
Kenya Block 9
Exploration
activities in Block 9 are focused on a planned 750km (gross) (250km net) 2D
seismic survey focused on the oil prone Kaisut
sub-basin. Additional plans involve further efforts to investigate gas
commercialization alternatives in East Africa, in anticipation of performing
extended well tests on the potentially significant gas discovery that
resulted from drilling the Bogal 1-1 well in 2010.
Puntand Dharoor and Nugaal Blocks
Exploration
activities in Puntland are focused on drilling the
first exploration well in Somalia in over 20 years. The Operator, Africa Oil,
plans to spud the first well in the Dharoor Block
during Q3 2011. Activities are currently focused on the identification and
contracting of drilling and drilling support contractors willing to operate
in Puntland on commercially acceptable terms. A
second well in the Dharoor Block is planned to
commence following completion of the first exploration well.
About the
Company: Lion Energy Corp. is a well-financed,
Canadian exploration company with a vision to develop a significant presence
in the African oil and gas industry. The Company holds oil and gas interests
in four petroleum blocks located in the Republic of Kenya and in Puntland, Somalia.
To find out
more about the Company, please visit our website at www.lionenergycorp.com.
On behalf of
the Board,
LION ENERGY
CORP.
John R.
Nelson
President and Chief Executive Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
This release
includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements
of historical facts, that address exploration drilling, exploration
activities and events or developments that the Company expects to occur, are
forward-looking statements. Forward-looking statements in this news
release include statements regarding the Company's intentions or plans,
whether of a corporate or exploratory nature. Although the Company believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploration and exploration successes, and continued availability of
capital and financing and general economic, political, market or business
conditions. These statements are based on a number of assumptions, including,
among others, assumptions regarding general business and economic conditions,
the timing and receipt of regulatory and governmental approvals for the
transactions described herein, the ability of the Company and other parties
to satisfy stock exchange and other regulatory requirements in a timely
manner, the availability of financing for the Company's proposed transactions
and programs on reasonable terms, and the ability of third-party service
providers to deliver services in a timely manner. Investors are
cautioned that any such statements are not guarantees of future performance
and actual results or developments may differ materially from those projected
on the forward-looking statements. The Company does not assume any
obligation to update or revise its forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by
applicable law or regulatory policies.
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