LION ENERGY CORP Operations and Investments Update
TSX.V - LEO
VANCOUVER, Nov. 17 /CNW/ - 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.
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/For further information:
To find out more about the Company, please visit our website at
www.lionenergycorp.com.
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