TSX.V - LEO
VANCOUVER, July 27 /PRNewswire-FirstCall/ - 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
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.