TSX.V - LEO
VANCOUVER, July 27 /CNW/ - Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) is pleased to provide an update on the CNOOC-operated Bogal-1 well on Block 9, Kenya. Preliminary testing on two potential gas pay zones has been completed, with only minimal flow of gas from each zone. Analysis of the test results indicates that neither test was in communication with the extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log. The well has been plugged pending further analysis of the test results to determine the feasibility of an additional testing program, which might include fracture and acid stimulation, due to potential wellbore damage during drilling.
John Nelson, President and CEO of Lion Energy, commented, "Despite not having definitive test results in the Bogal-1 well that could lead to commercial exploitation at this time, we have demonstrated that Block 9 is hydrocarbon bearing. Data acquired from this deep well will greatly contribute to identifying the hydrocarbon potential on a number of excellent oil and gas prone prospects remaining on Block 9, which remains a very attractive asset in our portfolio."
In other news in Kenya, seismic is currently being shot on Block 10BB. Once complete, the seismic crew and equipment will move to Block 10A. The seismic acquisition, processing and interpretation to follow are in preparation of the planned drill program in the first half of 2011. Blocks 10BB and 10A are operated by Africa Oil Corp.
The Company also announces that Mr. David John Birkenshaw, F.C.S.I., of Toronto, has been appointed to the Company's board of directors effective July 21, 2010. With over 20 years' experience, Mr. Birkenshaw brings a solid investment management track record to the Company. In 1989, Mr. Birkenshaw formed Birkenshaw & Company Ltd., a firm specializing in investment and merchant banking. Between 1997 and 2001, Mr. Birkenshaw was also a Senior Vice-President and Director of PricewaterhouseCoopers LLP, with specific responsibilities for the generatation of merger and acquisition transactions for the firm. John R. Nelson, Company President and CEO said: "Mr. Birkenshaw will bring a wealth of financial and business expertise and we are pleased to strengthen our Board with someone of his calibre."
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 signed an agreement with Africa Oil Corp. that grants the Company the right to earn an interest in five petroleum blocks located in the Republic of Kenya and in Puntland, Somalia. The Company further holds a 21.9% interest in Encanto Potash Corp., a junior potash exploration company and a 18% interest in 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
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This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Company's intentions or plans, whether of a corporate or exploratory nature. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, political, market or business conditions. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulatory policies.
SOURCE LION ENERGY CORP.
For further information: For further information: To find out more about the Company, please visit our website at www.lionenergycorp.com