TSX.V - LEO
VANCOUVER, Nov. 17 /PRNewswire/ - Lion Energy Corp.
(the "Company" or "Lion Energy") (TSX.V - LEO)
reports on the application for a judicial review of the
administrative process that resulted in the issuance of exploration
permits for, amongst others, Block 10BB (see also the Company's
news release dated September 28, 2010). The application was
made by Interstate Petroleum Ltd. against the Permanent Secretary,
Ministry for Energy in Kenya and included the Operator, Africa Oil
Corp, as an interested party.
The High Court in Kitale, Kenya heard the
submissions of the parties on November 16, 2010 and will issue a
final ruling on the case on December 16, 2010. In the
interim, the stay order that had initially been imposed on
operations under the exploration permits was lifted.
Amendments to the farmout agreement between the
Company and Africa Oil, (see also the Company's news release dated
September 2, 2010) are subject to the successful closing of a
definitive farmout agreement between Tullow Oil plc and Africa Oil,
whereby Tullow will acquire a 50% interest in, and operatorship of,
three of Africa Oil's east African exploration blocks, comprised of
exploration Blocks 10A and 10BB in Kenya and one exploration block
in Ethiopia. Closing is subject to the final High Court ruling to
be delivered on December 16, 2010.
Africa Oil completed the 2D seismic acquisition
program on Block 10BB in late October 2010 and has now moved the
seismic camp to Block 10A to initiate a 750 line kilometer
acquisition program of 2D seismic. The program will be
completed in the first quarter of 2011. Drilling of the first
exploration well on block 10BB is expected to take place in mid
2011.
In two transactions this month, the Company sold
an aggregate of 26,000,000 common shares of Encanto Potash Corp. at
a price of $0.20 each. Gross proceeds to the Company's
treasury amounted to $5.2 million, less finders' fees/commissions
of 5%. The Company's percentage shareholdings of Encanto are now
reduced to approximately 8.8%. As a result, the Company is no
longer regarded as an "insider" of Encanto. The Company
continues to hold 19,846,525 common shares of Encanto. No
further sales are planned in 2010, and Company management intends
to retain the remaining Encanto shareholdings as a longer term
investment. Proceeds from the sale will be used to fund ongoing
operations in east Africa.
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 holds oil and gas interests in four petroleum
blocks located in the Republic of Kenya and in Puntland, Somalia.
The Company further holds an 8.8% interest in Encanto Potash Corp.,
a junior potash exploration company and an 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
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
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.
Copyright . 17 PR Newswire