Lion Energy ( ASX:LIO )
Indonesia has been an oil hot spot for over 100 years and one ASX junior, with production and exploration catalysts on the horizon is looking to capitalise here.
This company has acquired a string of either conventional producing or near term production assets, with a priority on gas, and is also in pursuit of unconventional opportunities.
This $8 million capped junior is just a few days away from spudding a shallow exploration well, situated in a highly prolific onshore hydrocarbon region of Indonesia.
This well is on trend with major oil fields in the region and results will be available not long after spudding, with the well taking just 15 days to complete.
Assuming success on this well, there is potential for a strong and swift re-rate on the back of positive news.
Furthermore, this company has a series of catalysts ahead in its other oil and gas assets, in particular at Jerneh – a potential blockbuster gas deposit that is set to be drilled in 2017.
This company is well funded and tightly run, having restructured and minimised costs in a bid to ride out the oil market downturn.
With over $2 million in the bank following a recent capital raising, the company is in a strong position to build a portfolio that could fulfil its ambition of moving from a tiny Indonesian oil and gas explorer to become a prominent hydrocarbon producer in the region.
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With two of its lead projects on trend where Exxon Mobil made its first major break in the region, producing 16.2 million tonnes of gas, today’s company has a significant asset base in a prolific oil and gas region, where energy demands are increasing.
It all bodes well for this company as the company prepares for the spudding of its next well in the coming days.
In the Coming Days, this $8M Capped ASX Stock is Spudding a Well in an Oil Hot Spot
Dec 8, 2016
One $8M capped oil and gas producer and explorer is just a few days away from spudding a well offering near term production potential in a highly prolific onshore hydrocarbon region of Indonesia. The low cost Amanah Timur-1 well is scheduled to spud around the 12th December on an underexplored block that is on trend with major oil fields in the region.