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Lion Energy is in joint venture through the operator Ridgelake Energy Inc. via a Participation Agreement which covers farmin to five Federal leases in the Gulf of Mexico. The five leases are:
- South Marsh Island 152
- South Marsh Island 138
- Vermilion 317
- High Island 307
- Viosca Knoll 79
Lion has the right to earn up to 30% in each block by funding 40% of lease sunk costs and exploration wells. All prospects are in shallow water.
The first of the exploration wells in SMI 138 has been completed with disappointing results. The lease is being re-appraised in light of this result. The Drilling Schedule for 2007 will likely be revised accordingly.
Lion Energy's right to earn Working Interest in the five leases, and Target Resources for each lease, is as follows:
Lease |
Area
(acres) |
Water
Depth
(ft) |
Lion Energy
right to earn
Working
Interest
|
Target Resources
(Apex Geophysical Services Inc.
High side estimates) |
SMI 152 |
2,500 |
220' |
30% |
16.84 bcf gas+
0.92 mmbbls oil |
SMI 138 |
5,000 |
220' |
30% |
Under review |
V 317 |
5,000 |
210' |
30% |
29.10 bcf gas |
HI 307 |
5,760 |
200' |
30% |
13.56 bcf gas |
VK 79 |
5,760 |
100' |
30% |
18.02 bcf gas |
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