VANCOUVER, May 12 /CNW/ - Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) is pleased to announce that drilling of the Kenya Block 9 Bogal 1-1 well reached a total depth of 5,085 metres. Gas shows and petrophysical analysis of wireline logs indicate multiple gas pay zones totaling approximately 91 metres in Lower Cretaceous sandstones. Seven inch casing has been set and testing equipment is currently being mobilized from China. Test results are expected to be available over the next 60 days.
Company President and CEO John Nelson concurs with comments recently made by the President of its partner Africa Oil Corp. ("AOC") that "our first well in Africa appears to be a potential gas discovery. The size and commerciality has yet to be determined by testing, however the initial analysis highlights the excellent prospectivity of the block. Following and test results, the joint venture partners will meet to discuss the plan for potential Bogal appraisal work in addition to exploring marketing scenarios to best commercialize gas in East Africa."
Lion Energy is also pleased to announce that a letter of intent has been signed by AOC to award a contract with the Bureau of Geophysical Prospecting (BGP) to acquire 1,350 km of seismic on the Block 10BB and Block 10A projects in Kenya. Drilling in these blocks is expected to take place in 2011.
Lion Energy holds rights to acquire net working interests in the Block 9 (10%), 10BB (20%) and 10A (25%) projects.
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 27.6% interest in Encanto Potash Corp., a junior potash exploration company and a 20% 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.
President and CEO
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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.