English
18.01.2011 comments (0)
Vancouver

Vancouver

LION ENERGY CORP Puntland Operations Update

Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) is pleased to announce that it entered into amending agreements with the Government of Puntland, represented by the Puntland Petroleum and Mineral Agency, in respect of the production sharing agreements ("PSAs") for the Dharoor Valley Exploration Area and the Nugaal Valley Exploration Area, together with its joint venture partners - Africa Oil Corp. and Range Resource Ltd.  Under the PSAs, as amended, the First Exploration Agreement has been extended for a further 12 months, from January 17, 2011 to January 17, 2012.  The Company appreciates the negotiation efforts of the Operator, Africa Oil Corp., and the government in granting this extension.

Under the amended PSAs the JV partners are obligated to spud a minimum of one exploratory well in the Dharoor Valley Exploration Area by July 27, 2011.  A second exploratory well is required to be spudded in the Nugaal Valley Exploration Area or, at the option of Africa Oil, in the Dharoor Valley Exploration Area, by September 27, 2011.


The Company looks forward to the upcoming wells in the rift basins of Puntland which could hold similar potential to the geologically related basins in Yemen that contain more than 6 billion barrels of discovered reserves.  Negotiations with a potential drilling contractor to meet these obligations are at an advanced stage.


About the Company: Lion Energy Corp. is a well-financed, Canadian exploration company with a vision to develop a significant presence in the developing 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. The Company further holds interests in both Encanto Potash Corp., a junior potash exploration company and Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer.


On behalf of the Board,


LION ENERGY CORP.
John R. Nelson
President and Chief Executive Officer




COMMENTS
no comments available
POST A COMMENT
Captcha

[top]