Lion Energy cleans out top execs and launches oil and gas asset review
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ASX-listed Lion Energy is undergoing an overhaul that includes its top executives stepping down and a rationalisation of its oil and gas assets.
Lion (ASX:LIO) is reviewing its portfolio in the hopes of offloading any non-core assets to allow it to focus on producing projects. It is also looking at other production opportunities in Indonesia, where it currently operates.
Kim Morrison and Stuart Smith have resigned from their respective CEO and CFO positions and Russell Brimage has given up his chairmanship but remained on as a non-executive director.
The CEO of Risco Energy, Tom Soulsby, has taken over as chairman, while Risco’s former CFO, Damien Servant, is now an executive director of Lion.
Risco owns 46 per cent of Lion.
Mr Soulsby helped secure backing for Risco prior to its incorporation in 2010 and was responsible for the eventual monetisation of the company’s first South East Asian oil and gas portfolio in 2013.
“I suppose it’s fair to say I’m going in to try and rectify an underperforming asset,” Mr Soulsby told Stockhead. “[Lion’s] share price has underperformed and we’re looking at reinvigorating it, getting some new people in and just basically reorienting the company in a direction which has got a lower risk approach to it and is production driven.”
Mr Soulsby says Risco is well versed in picking up advanced assets and breathing new life into them.
“We’ve generally been quite good at acquiring mature or producing blocks and then basically just doing it better,” he said.
“One thing that we don’t have a lack of access to, and we’ve proven this particularly in the Perth market, is accessing Asian money into the Perth sector. Risco’s done that with Otto back in the Galoc days. We’ve done it with Tap … and we’re doing it with Lion.”
Zane Lewis has also joined the board as a non-executive director.
Lion had $795,000 worth of cash in the kitty at the end of the December quarter and forecasts a cash burn of $380,000 in the current quarter.
The company expects an outcome from its review in early March.
Lion shares were steady at 5c on Wednesday morning, valuing the company at $5.6 million.