Lion pounces on Indonesia

LION Energy has entered into a transaction coordination and convertible loan agreement with KRX Energy and Risco Energy to refocus the company on Southeast Asia as it looks for exposure to the Indonesian energy market.
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The agreements lay the foundation for a potential takeover of KRX by Lion which will be subject to shareholder approval.

The company already holds a 30.77% interest in KRX.

The funds from the loan facility will be used to provide funding for KRX to help meet cash calls in relation to its South Block "A" operation.

Through the agreements, Lion has secured a $A1.5 million convertible loan facility and will raise another $2.5 million through the placement of 100 million shares in Risco.

Lion will also earn the rights to a 35% interest in an area of mutual interest agreement in offshore Indonesia.

The company said the potential takeovers and funding agreements would allow it to own high initial working interest positions, be operator for most of its production areas, secure funding through a strong network of investors and merge the skills of the companies.

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