Lion Energy (ASX:LIO) has secured majority funding for its upcoming East Seram PSC drilling campaign through a farm-out agreement with OPIC East Seram Corporation, a wholly-owned subsidiary of Taiwan's CPC.
Under the deal, OPIC will fund 88% of the US$5.6 million Bula Karang exploration well, scheduled for Q2 2026, in exchange for an additional 15% interest in the PSC, leaving Lion with a 45% stake and a net funding obligation of US$0.7 million.
The shallow, onshore-drilled well targets the Bula Karang prospect, a Plio-Pleistocene carbonate structure located near the producing Bula Oil Field, with an estimated P50 prospective resource of 12 million barrels of oil and the potential for early production if successful.
Lion's recent US$1.2 million sale of its Seram Non-Bula PSC stake underwrites its share of the well cost.
Lion Chairman Tom Soulsby described the arrangement as "a great outcome," highlighting both the reduced financial exposure and the significant exploration upside, with the PSC's existing infrastructure offering a clear route to market.
At the time of reporting, Lion Energy's share price was $0.021.