Lion Energy's Quarterly Report Highlights Green Hydrogen and Oil & Gas Developments
LIO (LIO) Share Update July 2024 Monday 29th
Lion Energy Advances Green Hydrogen and Oil & Gas Projects
Lion Energy Limited (ASX: LIO) has released its quarterly report for Q2 2024, showcasing substantial advancements in both its green hydrogen business and traditional oil and gas operations.
Instant Summary:
- Signed a 20-year lease with Port of Brisbane for a green hydrogen refuelling hub.
- Raised $1.6 million in capital from key shareholders.
- Received strong interest for leasing newly acquired hydrogen tube trailers.
- Extended the East Seram PSC by four years, retaining key prospects.
- Completed crude oil lifting, providing proceeds of approximately USD235K.
Green Hydrogen Developments
In Q2 2024, Lion Energy made significant strides in its green hydrogen business. The company signed a 20-year lease agreement with the Port of Brisbane to build and operate its first green hydrogen refuelling hub. This facility is strategically located at the Port Gate, making it accessible to Brisbane's bus depots and heavy vehicle traffic.
Development approval was obtained from the Queensland State Assessment and Referral Agency (SARA) in March 2024. Lion Energy aims to create a blueprint for a wider hub-and-spoke supply network across eastern Australia. The company also received two hydrogen tube trailers and high-pressure hydrogen compressors, ready for construction to commence later this year.
Oil and Gas Operations
On the oil and gas front, Lion Energy secured a four-year extension to the East Seram PSC, allowing tenure through July 2028. This extension retains all key prospects and leads within the new PSC area of 1,300 km², effective from 17 July 2024. The company completed a crude oil lifting on 30 June 2024, resulting in proceeds of approximately USD235K post government entitlement.
During the quarter, Lion Energy continued its exploration program in the East Seram PSC, targeting the Kobi, Waru, and Tanah Baru prospects. These areas have shown promising potential, with prospective resources estimated to be in the hundreds of millions of barrels of oil equivalent (mmboe).
The advancements in Lion Energy's green hydrogen business are likely to positively impact the company's stock price, as the green hydrogen market is gaining significant traction. The successful capital raising and strong interest in leasing hydrogen tube trailers further bolster investor confidence. On the oil and gas side, the extension of the East Seram PSC and the completion of crude oil lifting provide a stable revenue stream, which is crucial for the company's financial health.
Investor Reaction:
Analysts are likely to view Lion Energy's progress in green hydrogen as a positive development, given the increasing demand for clean energy solutions. The extension of the East Seram PSC and the successful crude oil lifting are also expected to be well-received by investors, as they ensure continued revenue from traditional energy sources.
Conclusion:
Investors should keep an eye on Lion Energy's upcoming announcements, particularly regarding the finalization of joint venture partnerships and the commencement of construction on the green hydrogen refuelling hub. The company's strategic focus on both green hydrogen and oil and gas positions it well for future growth.