The buyer is Indonesian company PT Ilham Treda Industri.
Lion expects sale proceeds and loan repayments totalling more than A$5,720,000 plus proceeds from the sale of oil inventory held to the date of sale totalling approximately A$1,480,000. These are net amounts that take into account paying out Indonesian Government entitlements at the completion of sale in January 2005.
Lion said it intends to use the proceeds to purchase or farm into oil or gas tenements. It does not intend to pay a dividend or return of capital as a result of this sale.
In addition to its stake in the Oseil oil and gas acreage, Lion said it would retain its 10.63% shareholding in Cooper Basin junior Entek Energy.
Yesterday Lion Energy was the top ASX traded stock by volume, with 78.88 million shares traded for a total value of $1.08 million. The stock fell 0.3 cents to 1.3 cents.
