“Lion Energy Limited has elected not to proceed with its acquisition of 20% of PetroReal Main Pass LLC. The contemplated acquisition was previously advised to ASX on 10 December 2004,” the company’s statement read in full.
The proposed acquisition was to involve Lion outlaying US$8 million to acquire a 20% interest in Canadian-based International PetroReal Oil Corporation, a company holding a 70% interest in the Main Pass-59 (MP-59), a producing oil field in the Gulf of Mexico. This would have given an effective 14% net interest in the oil field.
The Gulf of Mexico acquisition would give Lion Energy stakes in a second international producing oil fields to add to its 2.5% interest in the onshore Oseil field in Indonesia's Seram PSC.
Lion Energy intends to sell its producing but mature Bula oil field in Indonesia for about US$4.35 million (A$5.65 million). It is not clear what it intends to do with these funds.
