Lion Energy Overview
Core Identification Data
| Field | Detail | Source |
|---|---|---|
| Legal name | Lion Energy Limited | ASX announcements 2026 |
| ABN | 51 000 753 640 | ASX announcement, 29 Jun 2026 |
| Former names | Kalgoorlie Resources NL (ASX: KGR) until 10 Dec 1998; Kalrez Energy NL (ASX: KRZ) until 31 Jan 2001; Kalrez Energy Limited until 10 Oct 2003; thereafter Lion Energy Limited | Market Index corporate history (Morningstar) |
| Year of incorporation | 1,970 | S&P Global company profile |
| ASX listing date | 15 February 1972 | Market Index |
| Incorporation jurisdiction | Australia (Western Australia-based public company) | Company filings |
| Headquarters address | Suite 1, 295 Rokeby Road, Subiaco WA 6008, Australia (older materials cite Suite 7 at the same address) | ASX announcement, 29 Jun 2026; company website |
| Telephone / email | +61 8 9211 1500 / info@lionenergy.com.au | ASX announcement, 29 Jun 2026 |
| Exchange and ticker | Australian Securities Exchange: LIO (sole listing) | ASX |
| ISIN | AU000000LIO7 (standard ASX ISIN construction; confirm with registry) | — |
| CUSIP | Not applicable (no US listing) | — |
| Fiscal year end | 31 December | S&P Global; statutory accounts released 31 Mar 2026 |
| Share registry | Computershare | Market Index |
| Auditor | Hall Chadwick WA Audit Pty Ltd | Market Index |
| Employees (latest) | Not publicly disclosed. The company runs a small Perth corporate team plus a drilling, HSE, procurement and logistics team in Jakarta (Bula Karang-1 update #1, 25 Feb 2026) | ASX announcements |
| Employees (3-year trend) | — | — |
| Shares on issue | 452.18 million (FY2024, FY2025 and 30 June 2026) | S&P Global; Morningstar |
| Market capitalisation (current) | A$8.14 million at A$0.018 (9 October 2026 close) | StockAnalysis.com |
| 52-week trading range | A$0.009 – A$0.026 | StockAnalysis.com |
| Industry classification | Energy — Oil & Gas Exploration & Production | S&P Global |
Lion Energy is a micro-cap Perth-based upstream oil and gas company. After a failed diversification, it has returned to a single-asset exploration model in eastern Indonesia. Its core asset is a 45% operated interest, held through subsidiary Balam Energy Pte Ltd, in the East Seram Production Sharing Contract (PSC) on Seram Island in Maluku province. Partner OPIC East Seram Corporation, a subsidiary of Taiwan's state-owned CPC Corporation, holds the other 55%. The near-term investment case rests almost entirely on the Bula Karang-1 exploration well. The well has a P50 prospective resource of 12 million barrels and a 38% geological chance of success, and OPIC funds 88% of costs up to US$5.6 million. From 2021 to 2026 Lion pursued green hydrogen in Australia, culminating in the Port of Brisbane hub. It terminated that project in May 2026 and has now exited hydrogen entirely. With under A$1 million of cash at June 2026, Lion is a high-risk, binary, event-driven exploration stock.
What the Company Does
Lion Energy explores for, appraises and seeks to develop conventional oil and gas in eastern Indonesia, centred on Seram Island in the Seram Basin. In practice, the company today is:
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An operator of an exploration-stage PSC. Balam Energy Pte Ltd, a wholly owned Lion subsidiary, is operator of the East Seram PSC with a 45% participating interest. S&P Global reports the PSC area as about 1,300 km².
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A project manager for a single exploration well. Lion runs Bula Karang-1, a deviated well drilled from an onshore pad to an offshore reef target in Bula Bay. It contracts a third-party rig (Silver City Drilling's SCD-20) and specialist services such as directional drilling, cementing, drilling fluids and wireline.
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A residual holder of legacy positions. Lion agreed in September 2025 to sell its 2.5% minority interest in the producing Seram (Non-Bula) PSC for about US$1.2 million. It retains holding rights to the now-dormant Port of Brisbane hydrogen site, and has sold the related equipment.
Company's Own Description
The website "About Us" page describes Lion as a recently revamped and refocused ASX-listed oil and gas company focused on Southeast Asia, and specifically on the Seram Basin of East Indonesia. It characterises that basin as immature yet proven, with existing oil and gas export infrastructure serving the producing Oseil field.
The company also claims:
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the largest land position on Seram Island;
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long PSC tenure under newer fiscal terms;
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that the Manusela pre-Tertiary play (hosting Lofin and Oseil) has had six targeted exploration wells, all discoveries;
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about 700 million barrels of oil equivalent (mmboe) of upside within East Seram.
A separate "Company Overview" page, which still reflects the 2021–2025 strategy, presents Lion as applying upstream skills to green hydrogen in Australia.
ASX announcements in 2026 describe Lion more narrowly. The standard "Lion at a glance" box calls it an ASX-listed oil and gas E&P company with a conventional PSC on Seram Island, Indonesia, drilling an oil exploration well in Q3 2026.
Business Model and Revenue Model
| Dimension | Characterisation |
|---|---|
| Model type | Pre-revenue exploration (project-generation and farm-out model) |
| Product vs service mix | Historical revenue came from Lion's share of crude oil sales from the 2.5% Seram (Non-Bula) interest and minor other income. No subscription or licensing revenue. |
| Revenue scale | A$0.14M in FY2025; A$0.10M in FY2024 (S&P Global). Morningstar reports FY2024 trading revenue of A$0.84M; see Section 6 for this discrepancy. |
| Value creation mechanism | Acquire acreage cheaply, de-risk with seismic and technical work, farm out to fund drilling, and monetise discoveries through development or sale |
| Funding model | Equity placements, convertible notes (A$1.6M issued 2024), asset sales (Seram Non-Bula, US$1.2M), farm-out carries (OPIC funds 88% of Bula Karang-1 up to US$5.6M), and partner payments (DGA and Samsung C&T paid towards hydrogen pre-construction costs) |
| Value chain position | Upstream: exploration, appraisal and early development. No midstream or downstream exposure. |
| Customer types (if production achieved) | Indonesian crude buyers under PSC lifting arrangements, typically state entities or offtakers via SKK Migas-administered processes. The pricing reference is the Indonesian Crude Price (ICP). |
| End-markets | Indonesian and regional Asian crude oil markets |
Independent Characterisation
Lion is best understood as a call option on one well, wrapped in a corporate shell with very limited liquidity. The OPIC farm-out caps Lion's net exposure to about US$0.7 million (12% of the US$5.6 million well cost estimate). Costs above the cap are shared 45/55 between Balam and OPIC.
If Bula Karang-1 succeeds, the shallow, near-infrastructure location supports a fast-track extended well test and early production. The company planned the test for November 2026 using a workover rig already in the Bula area. If the well fails, Lion is left with a reduced East Seram position, minimal cash and a convertible note liability, and its strategic future would be uncertain.
The five-year hydrogen detour consumed capital and management attention, and ended in a A$3.27 million asset writedown in FY2025. The return to oil exploration reflects capital discipline under duress rather than a strategic choice made from strength.
Strategy
Stated Strategy Themes
In 2026 company communications, Lion presents its strategy around these themes (paraphrased):
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Focus on upstream oil and gas in Southeast Asia, specifically the Seram Basin, after exiting hydrogen.
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Capital-efficient, high-impact exploration. Use onshore-to-offshore deviated drilling to cut costs, and farm out to secure carries. Executive Chairman Tom Soulsby described Bula Karang-1 as a "potential game changer for Lion" (ShareCafe, 27 Jul 2026).
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Near-infrastructure, fast-to-market targets. Prioritise prospects near existing Bula and Oseil facilities that can move quickly into early production.
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Portfolio simplification. Divest minority and non-operated interests (Seram Non-Bula) and terminate uneconomic diversification (hydrogen).
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Retain operatorship and meaningful equity (45%) to keep exposure to exploration success.
Strategic Initiatives Register (last 24 months)
| Date | Initiative | Type | Detail / Target | Status |
|---|---|---|---|---|
| 26 Aug 2024 | Port of Brisbane JDA with DGA and Samsung C&T | Partnership / hydrogen | A$3.7M reimbursement and A$6.3M term loan; 50/25/25 ownership on a construction decision | Terminated 12 May 2026 |
| Q3 2025 | ARENA funding application for the Port of Brisbane project | Grant funding | Required to proceed to development | Abandoned with the project |
| 4 Sep 2025 | Sale of 2.5% Seram (Non-Bula) PSC | Divestment | About US$1.2M, earmarked to fund Lion's share of Bula Karang-1 | Completion expected Q3 2026 per Q2 2026 report |
| 2,025 | Hiring of drilling team; Jakarta office | Operational build-out | Drilling, HSE, procurement and logistics capability | Completed |
| 11 Dec 2025 | Convertible note maturity extension | Capital management | A$1.6M notes | Completed |
| 6 Jan 2026 | OPIC farm-out of East Seram PSC | Farm-out | OPIC funds 88% of well up to US$5.6M for an extra 15% PI | Completed 29 Jun 2026 |
| Feb–Jul 2026 | Bula Karang-1 execution: rig, services, permits, pad | Exploration | Spud targeted September 2026 | In progress |
| Q2 2026 | Exit from green hydrogen | Restructuring | Ceased operations; equipment sold for A$400k | Completed |
| Planned Nov 2026 | Extended well test, conditional on success | Appraisal / early production | Workover rig already in the Bula area | Conditional |
Medium-Term Targets and Guidance
Lion does not provide financial guidance. Operational guidance is limited to the Bula Karang-1 schedule and the conditional extended well test. No ESG, emissions, cost-reduction or production targets have been published. The hydrogen exit removes Lion's only sustainability-linked strategic initiative.
Products & Services
Lion has no commercial "products" in the conventional sense. Its portfolio consists of petroleum interests, prospects and (formerly) a hydrogen project. Each is catalogued individually below.
Oil & Gas Segment
5.1.1 East Seram PSC (45%, operator, via Balam Energy)
Description: An onshore and offshore conventional PSC on eastern Seram Island, Maluku, Indonesia. S&P Global reports an area of about 1,300 km².
Key features: The PSC contains shallow Plio-Pleistocene oil prospects around Bula Bay and deeper pre-Tertiary fold-belt (Manusela) prospects analogous to Oseil and Lofin. The company's website claims about 700 mmboe of upside.
Ownership: Balam 45% and OPIC East Seram Corporation 55% after Indonesian Government approval on 29 June 2026. Before the farm-out, Lion held 60% (S&P Global profile).
Commercial terms: OPIC funds 88% of Bula Karang-1 up to US$5.6M (100% basis). Costs above the cap are split 45/55. Lion's net obligation is about US$0.7M.
Regulatory significance: Bula Karang-1 satisfies the PSC's well commitment (ASX, 29 Jun 2026). The company has said that a commercial discovery could extend the PSC term by 20 years (ASX, 6 Jan 2026).
5.1.2 Bula Karang Prospect / Bula Karang-1 well (flagship near-term asset)
5.1.3 Deeper East Seram fold-belt prospects (Manusela play)
Description: Thrust-anticline prospects analogous to Oseil (oil) and Lofin (gas). The company has highlighted the play's 100% historical discovery rate across six targeted wells.
Status: Conceptual / prospect inventory. No drilling commitment disclosed.
5.1.4 Seram (Non-Bula) PSC — 2.5% minority interest (being divested)
Description: A producing PSC operated by CITIC Seram Energy (CITIC Resources, HKEX: 1205). It contains the Oseil oil field and the Lofin gas discovery (which the company has sized at 1.5–2 Tcf). Natural Gas World reports an area of 1,524 km².
Transaction: Sale for about US$1.2M was announced on 4 September 2025.
Green Hydrogen Segment (exited)
5.2.1 Port of Brisbane Green Hydrogen Hub (Lion H2 Energy)
5.2.2 Earlier hydrogen initiatives (c. 2021)
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MOU with Wagner Corporation to pursue green hydrogen (Toowoomba region, Queensland).
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MOU with Censtar for hydrogen refuelling equipment.
Royalty Interests
South Block A royalty: 0.8% of revenue from the South Block A PSC (Aceh), capped at US$4.5M, payable after 50% of the cost recovery pool at first oil is recovered (Natural Gas World). Current status, carrying value and whether the royalty remains in force are not publicly disclosed in sources reviewed.
Product Portfolio
| Attribute | Detail | Source |
|---|---|---|
Prospect type | Well-defined shallow reefal carbonate build-up (previously named PP9), with secondary potential in overlying sandstone reservoirs | ASX, 27 Jan 2026 and 29 Jun 2026 |
Prospective resource | P50 (best estimate) 12 mmbbl of oil, gross | ASX, 6 Jan 2026 |
Geological chance of success | 38% | ASX, 2 Apr 2026 and 27 Jul 2026 |
Well design | Deviated well from an onshore location to the offshore crest of the structure; relatively shallow vertical depth; avoids offshore rig costs | ASX, 29 Jun 2026 |
Well cost estimate | US$5.6M (100%) | ASX, 6 Jan 2026 |
Rig | Silver City Drilling SCD-20, a hydraulic 900HP Schramm Rotadrill TXD200 with integrated top drive, chosen for directional capability, small footprint, fuel efficiency and reduced manning | ASX, 2 Apr 2026; energy-pedia |
Services | Directional drilling, cementing, drilling fluids and wireline procured | ASX, 27 Jul 2026 |
Infrastructure | Near the producing Bula oil field (over 20 mmbbl produced), Oseil field facilities and existing cargo jetties. SKK Migas assisted with facilities-sharing arrangements. | ASX, 25 Feb 2026 and 29 Jun 2026 |
Schedule evolution | Q2 2026 (Jan) → early July (Feb) → July (Apr) → August (Jun) → September 2026 (Jul) | Successive ASX updates |
Post-well plan | If results warrant, complete the well with a smaller workover rig already in the Bula area and run an extended well test, previously pencilled in for November | ASX, 3 Jun 2026 |
Follow-up potential | Additional Bula Karang-style prospects in Bula Bay | ASX, 3 Jun 2026 |
| Attribute | Detail |
|---|---|
Concept | Green hydrogen production and refuelling hub for heavy transport, logistics, public transport and industrial users |
Capacity | Designed for over 300 tonnes per annum (HVIA, Aug 2024) |
Site | Port of Brisbane, with a 10+10-year lease; development approvals obtained |
Partners (2024–2026) | DGA Energy Solutions Australia (Mitsubishi Corporation subsidiary) and Samsung C&T Corporation |
JDA economics | Partners to pay Lion A$3.7M for historical and ongoing pre-construction costs (some outlets reported A$2.5M) for 25% each, and to procure a A$6.3M term loan on a construction decision. Some outlets cited A$4.07M of debt; the ASX release states A$6.3M. |
Funding pursuit | ARENA grant funding targeted (Q3 2025 activities report) |
Termination | 12 May 2026, citing high capital costs, unsupportive regulatory frameworks and limited near-term demand visibility on Australia's east coast |
Exit | Q2 2026: operations ceased; equipment sold for A$400k, receivable after quarter-end |
Financial Narrative
Data sources: S&P Global Market Intelligence via StockAnalysis.com (last updated 11 Sep 2026), cross-checked to Morningstar via Market Index for FY2024–FY2025. All figures are A$ millions unless stated. FY = year to 31 December. The company's FY2025 Annual Report (released 22 Apr 2026) is the primary source, and readers should reconcile it to these standardised figures.
Income Statement
EPS is derived as net income divided by weighted shares. Morningstar reports FY2025 EPS of -1.21 cents and FY2024 of -0.32 cents, consistent within rounding.
Margins and Growth
FY2024–FY2025 EBITDA margins are analyst-computed from S&P EBITDA and revenue. Margins on a sub-A$0.2M revenue base are not analytically meaningful.
Revenue CAGR FY2021–FY2025: about -42.7% a year (A$1.30M to A$0.14M), computed from S&P Global data.
Trend commentary. Lion has never been self-funding over this period. Revenue from the 2.5% Seram (Non-Bula) entitlement peaked at A$1.58M in FY2022, helped by strong oil prices, then collapsed as that interest was reclassified and prepared for sale. The cash cost of running the corporate head office (SG&A of A$1.5–2.2M a year) has consistently exceeded revenue by multiples.
The FY2025 net loss of A$5.49M was the largest in five years, but 60% of it (A$3.27M) was a non-cash writedown. Excluding that writedown and other unusual items, the pre-tax loss before unusual items was A$2.33M, in line with FY2023 (A$2.06M) and FY2024 (A$1.88M). FY2022 interest expense of A$1.58M was unusually high. This most likely reflects non-cash convertible note accounting from the 2021 funding, which included A$4.95M of debt issued.
Balance Sheet
Latest balance sheet (30 June 2026, S&P Global half-year data): cash A$0.86M; total current assets A$1.84M; total assets A$6.72M; total debt A$2.68M (short-term debt A$1.48M plus leases A$1.21M); net debt A$1.81M; total liabilities A$4.33M; equity A$2.39M; working capital negative A$1.44M. The company's Appendix 5B reported cash of A$889k at 30 June 2026. The small difference from S&P's A$0.86M reflects rounding and classification.
Commentary. The balance sheet has deteriorated steadily. Cash fell from A$11.94M at December 2021 to A$0.86M by June 2026, a decline of about 93%. Equity has roughly halved in each of the last two reporting periods, from A$10.43M to A$4.58M to A$2.39M.
The convertible notes (about A$1.4–1.5M carrying value, matured or extended in December 2025) are now the dominant financial liability. Their terms are a critical monitorable: maturity date, conversion price and security. The contributed equity line moves irregularly in the S&P data (A$86.96M in FY2023, A$80.91M in FY2024, A$96.20M in FY2025), which suggests reserve reclassifications. Investors should reconcile this to the statutory accounts and not interpret it as capital raised. No equity was issued in FY2023–FY2025 according to the cash flow statement.
Cash Flow
Trailing twelve months to June 2026 (S&P): operating cash flow -A$0.77M; capex -A$1.22M; free cash flow -A$1.98M; financing -A$0.28M.
June 2026 quarter (Appendix 5B, released 27 Jul 2026): net operating outflow A$582k; investing inflow A$373k, mainly joint venture-related receipts (OPIC contributions); no equity or debt raised; closing cash A$889k; funding runway about 0.98 quarters at the current spend rate. Expected inflows were A$400k from the hydrogen equipment sale and about US$1.2M from completing the Seram (Non-Bula) sale.
Commentary. Cumulative free cash flow over FY2021–FY2025 was about -A$17.4M, against about A$14.2M of net external funding over the period (A$7.68M equity plus A$6.38M net debt). FY2023 capex of A$4.65M and FY2024 capex of A$2.79M went largely to the Port of Brisbane hydrogen project (construction in progress of A$3.0M in FY2023 and A$3.31M in FY2024). That capital was then substantially written off in FY2025, recovering only A$400k of equipment proceeds in 2026. This is the single largest capital allocation failure in the period.
FY2024 benefited from about A$3.36M of investing inflows, consistent with the DGA and Samsung C&T reimbursement of pre-construction costs. The going-concern position at June 2026 depends on receiving the Seram (Non-Bula) proceeds and on OPIC's carry of well costs.
Ratios
Morningstar reports FY2025 ROE of -117.56% and ROA of -64.12%, and FY2024 ROE of -13.46% and ROA of -9.96%, consistent with these computations allowing for averaging.
Ratios not meaningful: Net debt/EBITDA is not meaningful because EBITDA is negative in every year; the company held net cash until FY2025 and net debt of A$1.81M at June 2026. Interest coverage (EBIT/interest) was negative in all years with interest expense: -0.87x FY2021, -0.94x FY2022, -14.3x FY2024 and -10.1x FY2025; FY2023 had no recorded interest expense. Cash conversion cycle is not meaningful for a pre-production explorer with negligible inventory and revenue.
The current ratio fell from 7.3x in FY2022 to 1.04x in FY2025, and working capital turned negative at June 2026. This is the clearest quantitative signal of financing stress.
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Segment Overview
| Segment | What it contains | Products / services | Status at Oct 2026 |
|---|---|---|---|
Oil & Gas | East Seram PSC (Balam Energy Pte Ltd, 45%, operator). Until the sale completes, 2.5% of Seram (Non-Bula) PSC, which includes the Oseil oil field and Lofin gas discovery. | Exploration and appraisal; historical minority crude oil entitlement from Seram (Non-Bula) | Core and only continuing segment |
Green Hydrogen | Lion H2 Energy Pty Ltd; Port of Brisbane green hydrogen production and refuelling hub (designed for over 300 tonnes per annum, 10+10-year port lease, approvals secured) | Planned green hydrogen production and dispensing for heavy transport, logistics, public transport and industry | JDA terminated 12 May 2026; equipment sold for A$400k; operations ceased; site rights preserved in a holding pattern |
Revenue by Segment and Segment Margins & Growth (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Consolidated revenue (AUD Mn, S&P Global) | 1.30 | 1.58 | 0.98 | 0.10 | 0.14 |
Revenue growth YoY (%, S&P Global) | 7.33 | 21.33 | -37.71 | -90.30 | 47.31 |
Earnings from discontinued operations (AUD Mn, S&P Global) | 0.00 | 0.00 | 0.00 | -0.09 | -0.12 |
Asset writedown (AUD Mn, S&P Global) | 0.00 | 0.00 | 0.00 | 0.00 | -3.27 |
Group Entities
| Entity | Role | Interest |
|---|---|---|
Lion Energy Limited | ASX-listed parent | — |
Balam Energy Pte Ltd (Singapore) | Holder and operator of East Seram PSC interest | 100% owned by Lion; holds 45% PI |
Lion H2 Energy Pty Ltd | Port of Brisbane hydrogen project company | Lion 100%. The JDA envisaged Lion 50%, DGA 25% and Samsung C&T 25% on a construction decision, which never occurred. |
Lion International Investment Ltd / Lion Petroleum (Seram) Ltd | Historical holders of the 2.5% Seram (Non-Bula) PSC interest (names vary across historical reports) | 100% owned; interest being sold |
Kalrez Petroleum (Seram) Ltd; Indonesia Prima Energy Services Ltd | Former Bula PSC entities (Mauritius) | Sold 2005 |
Income Statement and Share Count (M)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (AUD Mn) | 1.30 | 1.58 | 0.98 | 0.10 | 0.14 |
Cost of revenue (AUD Mn) | 0.70 | 0.65 | 0.55 | 0.00 | 0.00 |
Gross profit (AUD Mn) | 0.60 | 0.93 | 0.44 | 0.10 | 0.14 |
SG&A (AUD Mn) | 1.49 | 2.16 | 1.92 | 1.81 | 2.15 |
Total operating expenses (AUD Mn) | 1.69 | 2.41 | 2.60 | 1.81 | 2.15 |
Operating income / EBIT (AUD Mn) | -1.09 | -1.48 | -2.16 | -1.72 | -2.01 |
D&A (AUD Mn) | 0.30 | 0.26 | 0.70 | 0.06 | 0.06 |
EBITDA (AUD Mn, S&P basis) | -0.79 | -1.22 | -1.46 | -1.65 | -1.95 |
Interest expense (AUD Mn) | -1.25 | -1.58 | 0.00 | -0.12 | -0.20 |
FX gain/loss (AUD Mn) | -0.10 | -0.69 | 0.00 | -0.05 | -0.11 |
Gain on sale of assets (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.61 | 0.00 |
Asset writedown (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.00 | -3.27 |
Pre-tax income (AUD Mn) | -2.44 | -3.72 | -2.06 | -1.28 | -5.38 |
Income tax expense (AUD Mn) | 0.08 | 0.28 | 0.00 | 0.00 | 0.00 |
Discontinued operations (AUD Mn) | 0.00 | 0.00 | 0.00 | -0.09 | -0.12 |
Net income (AUD Mn) | -2.52 | -4.00 | -2.06 | -1.37 | -5.49 |
Weighted basic shares (M) | 268 | 424 | 426 | 438 | 452 |
EPS basic (A$ cents) | -0.94 | -0.94 | -0.48 | -0.31 | -1.21 |
EPS diluted (A$ cents) | -0.94 | -0.94 | -0.48 | -0.31 | -1.21 |
Dividends per share (A$ cents) | 0 | 0 | 0 | 0 | 0 |
Financial Analysis
| Item | S&P Global | Morningstar (Market Index) | Comment |
|---|---|---|---|
FY2024 revenue | A$0.10M | A$0.84M trading revenue plus A$0.76M other income | Likely treatment of discontinued or held-for-sale oil entitlement |
FY2025 revenue | A$0.14M | Nil trading revenue; A$0.36M other income | Classification difference |
FY2025 EBITDA | -A$1.95M | -A$5.18M | Morningstar includes the A$3.27M writedown in EBITDA |
FY2024 EBITDA | -A$1.65M | -A$1.25M | Morningstar includes the A$0.61M asset sale gain |
FY2025 NPAT | -A$5.49M | -A$5.49M | Agree |
FY2024 NPAT | -A$1.37M | -A$1.40M | Minor difference |
FY2025 net PP&E | A$4.89M | A$0.96M | S&P likely includes capitalised exploration and evaluation within PP&E |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 46.27 | 58.98 | 44.26 | 100.00 | 100.00 |
Operating margin (%) | -83.93 | -93.58 | -219.70 | -1,798.12 | -1,430.62 |
EBITDA margin (%) | -60.86 | -77.17 | -148.66 | -1,730.00 | -1,388.00 |
Net margin (%) | -193.63 | -253.57 | -209.88 | -1,436.33 | -3,910.05 |
Revenue growth YoY (%) | 7.33 | 21.33 | -37.71 | -90.30 | 47.31 |
Balance Sheet and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash and equivalents (AUD Mn) | 11.94 | 9.58 | 3.02 | 3.16 | 1.75 |
Receivables (AUD Mn) | 0.65 | 0.59 | 0.62 | 0.90 | 0.18 |
Inventory (AUD Mn) | 0.35 | 0.46 | 0.38 | 0.02 | 0.00 |
Total current assets (AUD Mn) | 12.93 | 11.36 | 5.13 | 4.91 | 3.18 |
PP&E incl. exploration (AUD Mn, S&P) | 0.64 | 2.13 | 6.56 | 7.98 | 4.89 |
Total assets (AUD Mn) | 13.83 | 13.76 | 11.96 | 13.18 | 8.17 |
Short-term debt (AUD Mn) | 1.88 | 0.00 | 0.00 | 1.41 | 1.39 |
Current lease liabilities (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.08 | 0.08 |
Long-term lease liabilities (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.56 | 0.54 |
Total debt incl. leases (AUD Mn) | 1.88 | 0.00 | 0.00 | 2.05 | 2.01 |
Net debt (AUD Mn, negative = net cash) | -10.06 | -9.58 | -3.02 | -1.11 | 0.26 |
Total current liabilities (AUD Mn) | 2.30 | 1.55 | 1.32 | 1.85 | 3.06 |
Total liabilities (AUD Mn) | 2.58 | 1.85 | 1.62 | 2.75 | 3.59 |
Shareholders' equity (AUD Mn) | 11.25 | 11.91 | 10.34 | 10.43 | 4.58 |
Goodwill and intangibles (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Working capital (AUD Mn) | 10.63 | 9.81 | 3.82 | 3.05 | 0.13 |
Contributed equity (AUD Mn) | 78.21 | 86.94 | 86.96 | 80.91 | 96.20 |
Accumulated losses (AUD Mn) | -73.83 | -82.98 | -81.38 | -76.59 | -96.11 |
Book value per share (A$ cents) | 2.94 | 2.79 | 2.37 | 2.31 | 1.01 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (AUD Mn) | -0.74 | -0.93 | -1.89 | -2.03 | -1.27 |
Capital expenditure (AUD Mn) | -0.37 | -1.71 | -4.65 | -2.79 | -0.99 |
Free cash flow (AUD Mn) | -1.11 | -2.63 | -6.54 | -4.82 | -2.26 |
Investment in securities / asset proceeds (AUD Mn) | 0.00 | 0.00 | 0.00 | 3.36 | -0.03 |
Other investing (AUD Mn) | 0.31 | 0.00 | 0.00 | 0.00 | 0.93 |
Investing cash flow (AUD Mn) | -0.06 | -1.71 | -4.65 | 0.57 | -0.09 |
Debt issued / repaid, net (AUD Mn) | 4.95 | 0.00 | 0.00 | 1.61 | -0.18 |
Equity issued (AUD Mn) | 7.55 | 0.13 | 0.00 | 0.00 | 0.00 |
Dividends paid (AUD Mn) | 0 | 0 | 0 | 0 | 0 |
Share buybacks (AUD Mn) | 0 | 0 | 0 | 0 | 0 |
Financing cash flow (AUD Mn) | 12.04 | 0.13 | 0.00 | 1.61 | -0.18 |
Net change in cash (AUD Mn) | 11.03 | -3.19 | -6.53 | 0.14 | -1.41 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on closing equity (%) | -22.40 | -33.59 | -19.92 | -13.14 | -119.87 |
ROA on closing assets (%) | -18.22 | -29.07 | -17.22 | -10.39 | -67.20 |
ROIC proxy, EBIT / (equity + total debt) (%) | -8.30 | -12.43 | -20.89 | -13.78 | -30.50 |
Current ratio (x) | 5.62 | 7.33 | 3.89 | 2.65 | 1.04 |
Debt to equity (x) | 0.17 | 0.00 | 0.00 | 0.20 | 0.44 |
Asset turnover (x) | 0.094 | 0.115 | 0.082 | 0.007 | 0.017 |
Geography Overview
| Geography | Activity | Revenue attribution |
|---|---|---|
Indonesia (Seram Island, Maluku) | Seram (Non-Bula) PSC oil entitlement (being sold); East Seram PSC exploration | Historically 100% of trading revenue (analyst inference from asset base) |
Australia (Queensland; Perth HQ) | Port of Brisbane hydrogen project (pre-revenue, exited); corporate office | Nil trading revenue; other income (partner reimbursements, interest) |
Revenue by Region
| Region | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Indonesia revenue proxy (AUD Mn, S&P consolidated) | 1.30 | 1.58 | 0.98 | 0.10 | 0.14 |
Australia trading revenue (AUD Mn) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Share Price and Market Valuation
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Share price at 30 June (AUD) | 0.042 | 0.033 | 0.023 | 0.024 | 0.009 |
Market capitalisation at 31 Dec (AUD Mn, Morningstar) | 0 | 0 | 0 | 8.59 | 4.97 |
Enterprise value at 31 Dec (AUD Mn, Morningstar) | 0 | 0 | 0 | 7.49 | 5.23 |
Total shareholder return, calendar year (%, Morningstar) | 0 | 0 | 0 | 25.0 | -20.0 |
Share Price & Returns
| Horizon | Reference price | Change |
|---|---|---|
1-year | about A$0.015 (30 Oct 2025 announcement price) | about +20% |
3-year | A$0.023 (30 Jun 2023 close, proxy) | about -22% |
5-year | A$0.042 (30 Jun 2021 close, proxy) | about -57% |
52-week range | A$0.009 – A$0.026 | Current price is 38% below the high and 100% above the low |
Valuation Multiples
| Multiple | Lion Energy | Basis |
|---|---|---|
Market capitalisation | A$8.14M | 452.18M shares × A$0.018 |
Enterprise value | about A$9.96M | Market cap + A$2.68M debt − A$0.86M cash (30 Jun 2026) |
P/E | Not meaningful (loss-making; TTM net loss A$6.09M) | S&P Global |
EV/EBITDA | Not meaningful (negative EBITDA) | — |
EV/Sales | about 74x | A$9.96M / A$0.134M TTM revenue |
P/B | about 3.4x | A$8.14M / A$2.39M equity (30 Jun 2026) |
Beta | 1.27 | StockAnalysis.com |
EV per net P50 prospective barrel (unrisked) | about A$1.84/bbl | A$9.96M / 5.4 mmbbl net (45% × 12 mmbbl) |
EV per net risked barrel (38% GCOS) | about A$4.85/bbl | A$9.96M / 2.05 mmbbl |
Capital Markets
| Item | Status |
|---|---|
Analyst consensus | None. Market Index states that no major broker covers LIO. |
Dividend history | No dividends paid in the available record |
Dividend policy | No policy disclosed; dividends are not expected while pre-production |
Credit ratings (Moody's / S&P / Fitch) | Not rated |
Liquidity | Average daily volumes are low; about 777k shares (about A$14k) traded on 9 Oct 2026 |
Analyst Conclusions
Management Guidance
Management has issued no financial guidance. Operational guidance as of the last verified release (27 Jul 2026):
-
Bula Karang-1 spud targeted for September 2026.
-
If results are encouraging, completion with a workover rig and an extended well test, previously indicated for November 2026.
-
Completion of the Seram (Non-Bula) sale (about US$1.2M) expected in Q3 2026.
-
Receipt of A$400k from the hydrogen equipment sale.
Consensus Expectations
There is no sell-side consensus. The market's implied view, an EV of about A$10M against 5.4 mmbbl of net unrisked P50 resource, prices the well at a heavy discount to success-case value. That is consistent with a 38% GCOS combined with funding and dilution risk.
Bull Case (three arguments)
-
Asymmetric, carried exposure. Lion pays about US$0.7M (12%) of a US$5.6M well for 45% of the outcome. On success, a net 5.4 mmbbl P50 resource near infrastructure could be worth a multiple of today's A$8M market capitalisation, even at a conservative per-barrel in-ground valuation.
-
Speed to cash flow. The shallow target, onshore pad, workover rig already in the area and nearby Bula and Oseil infrastructure mean a discovery could produce test oil within months. This would reduce the time Lion must survive on external capital.
-
Portfolio and tenure upside. A discovery could trigger a 20-year PSC extension and validate follow-up Bula Bay prospects and the deeper Manusela play, which the company claims has a 6-for-6 discovery record.
Bear Case (three arguments)
-
Probability-weighted failure. At 38% GCOS, the well has about a 62% chance of failing geologically. A dry hole would leave a company with negative working capital, about A$1.5M of convertible notes and no producing assets.
-
Funding cliff and dilution. Cash of A$889k at June 2026 covered only 0.98 quarters, and equity was down to A$2.39M. Even with the Seram (Non-Bula) proceeds, any overrun above US$5.6M (shared 45%), test costs or delays will likely require equity issued at about A$0.01–0.02 per share. That would materially dilute holders even in a success case.
-
Execution and governance record. Four spud-date revisions in 2026, about A$7.4M of hydrogen capex largely written off, an executive chair with no separate CEO, and an unchanged board since 2018 all argue for a governance and execution discount.
Key Catalysts and Monitorables (next 12 months)
| # | Catalyst / monitorable | Expected timing | What to watch |
|---|---|---|---|
| 1 | Bula Karang-1 spud confirmation | Sep–Oct 2026 | Spud notice; drilling days versus plan |
| 2 | Bula Karang-1 results | Q4 2026 | Hydrocarbon shows, net pay, reservoir quality, wireline data |
| 3 | Extended well test | Nov 2026 onward, if successful | Flow rates, water cut, sustainability of production |
| 4 | Q3 2026 Quarterly and Appendix 5B | About 29 Oct 2026 | Cash, runway, OPIC receipts, cost to date versus US$5.6M cap |
| 5 | Seram (Non-Bula) sale completion | Q3–Q4 2026 | Receipt of about US$1.2M |
| 6 | Hydrogen equipment proceeds | H2 2026 | Receipt of A$400k |
| 7 | Convertible note maturity or conversion | — | Refinancing, conversion terms, dilution |
| 8 | Capital raising | Likely post-well | Price, size, discount, cornerstone participation (Areen, Risco) |
| 9 | FY2026 Annual Report | About Apr 2027 | Going-concern note, hydrogen discontinued operations, impairment |
| 10 | Follow-up prospect planning and PSC extension | 2,027 | Contingent on success |
Concluding Analyst Verdict
Lion Energy enters the fourth quarter of 2026 as a pure, highly leveraged exploration option. Its fortunes depend on one carried well in eastern Indonesia. The strategic reset of 2025–2026 was rational, even if forced. Lion sold a passive 2.5% interest in Seram (Non-Bula), farmed out 15% of East Seram to a state-backed partner for an 88% well carry, and walked away from an Australian hydrogen project whose economics had collapsed. Together, these moves turned a dispersed, cash-consuming portfolio into a single, funded, high-impact exploration event at a net cost to Lion of about US$0.7 million.
The asset has genuine merit. A shallow reef target with a 38% chance of success and a 12 million barrel P50 resource sits next to an oil field that has already produced over 20 million barrels, with infrastructure that can host rapid commercialisation. At an enterprise value of about A$10 million, the market ascribes less than A$2 per unrisked net barrel. That is a valuation that implicitly assumes either failure or punitive dilution.
That dilution risk is the crux. Lion reported under A$0.9 million of cash and negative working capital at June 2026. Its balance sheet carries a convertible note, and the hydrogen write-off left a record of costly capital allocation. Even a successful well will probably require new equity to fund testing and development, and a dry hole would likely force a recapitalisation or restructuring. Governance is adequate but not best practice for a company asking shareholders to underwrite more risk.
Verdict: Speculative, binary, event-driven, and suitable only for risk capital sized for a possible total loss. The risk-reward is defensible because of the partner carry and infrastructure proximity, but the probability-weighted outcome is dominated by geological and financing risk. Investors should verify the post-July 2026 well status and capital position directly from ASX releases before any position is taken. The next decisive data points are the drilling results and the Q3 2026 Appendix 5B.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Tenure (approx.) | Background (public) | Shares held (last notice 30 Dec 2025) |
|---|---|---|---|---|
Tom (Thomas) Soulsby | Executive Chairman | Director since at least 2018; Executive Chairman through the 2018 revamp to date | Leads strategy and is the public face of the company. | 7,775,692 direct |
Damien Servant | Executive Director | Since at least 2018 | Executive role in Indonesian operations and commercial matters (per the company's executive structure). | 3,492,740 direct |
Russell Brimage | Non-Executive Director | Since at least 2018 | — | 6,119,971 indirect (Pouvoir Pty Ltd, Brimage Super Fund) |
Chris (Christopher) Newton | Non-Executive Director | Since at least 2018 | — | 2,329,007 direct |
Zane Lewis | Non-Executive Director | Since at least 2018 | — | 4,577,900 indirect |
Board & Management Changes
| Date | Director | Securities | Indicative value (AUD) |
|---|---|---|---|
27 Nov 2024 | Thomas Soulsby | 10,000,000 issued | 108,256 |
27 Nov 2024 | Damien Servant | 7,000,000 issued | 75,779 |
27 Nov 2024 | Russell Brimage | 2,000,000 issued | 21,651 |
27 Nov 2024 | Chris Newton | 2,000,000 issued | 21,651 |
27 Nov 2024 | Zane Lewis | 2,000,000 issued | 21,651 |
12 Jul 2021 | All five directors | Option and share packages totalling about 46.3M securities | Various |
Governance Overview
| Attribute | Assessment |
|---|---|
Board size | 5 directors |
Executive / non-executive split | 2 executives (Soulsby, Servant); 3 non-executives (Brimage, Newton, Lewis) |
Independence | All three NEDs hold shares, and some may be associated with substantial holders. |
Chair/CEO separation | Not separated. The Chairman is an executive and no separate CEO is disclosed. This departs from ASX Corporate Governance Principles Recommendation 2.5 (an independent chair) and is typically explained on an "if not, why not" basis. |
Committees | Micro-cap boards of this size often perform audit and remuneration functions at full-board level. |
Board stability | High. The same five directors have served since at least 2018 (Market Index transaction history from 8 Jun 2018). |
Recent executive changes (24 months) | None identified |
Major Shareholders
| Rank | Holder | Shares | % |
|---|---|---|---|
| 1 | Citicorp Nominees Pty Limited | 74,213,854 | 16.41 |
| 2 | Risco Energy Unconventional Pte Ltd | 54,886,009 | 12.14 |
| 3 | 10 Bolivianos Pty Ltd | 22,284,690 | 4.93 |
| 4 | PT Senada Nusantara | 20,345,830 | 4.50 |
| 5 | Amarna Energy Pty Ltd | 19,395,681 | 4.29 |
| 6 | Risco Energy Investments (SEA) Limited | 18,631,937 | 4.12 |
| 7 | Mr Thomas Soulsby | 7,338,352 | 1.62 |
| 8 | Mr Sammy Hamzah | 6,400,654 | 1.42 |
| 9 | Mr Colin & Mrs Burnice Bennett | 6,325,000 | 1.40 |
| 10 | Pouvoir Pty Ltd (Brimage Super Fund) | 6,119,971 | 1.35 |
11–20 | Including Ms Nada Saade (1.28%), Mr Richard Grigg (1.16%), Mr Frank Hepburn (1.11%), PT Parama Mustika Indonesia (1.11%), Mr Zane Lewis (0.94%), Mr Damien Servant (0.61%) | — | — |
Competitive Landscape
Key Competitors
| Peer | Listing | Relevance to Lion | Relative positioning |
|---|---|---|---|
CITIC Resources Holdings (operator, Seram Non-Bula PSC) | HKEX: 1205 | Dominant producer on Seram Island (Oseil); owner of infrastructure that could host Bula Karang tie-in | Far larger, producing, diversified; potential partner or acquirer |
CPC Corporation / OPIC | State-owned (Taiwan) | Partner in East Seram, not a competitor; controls 55% | Financial strength far exceeds Lion |
Indonesia Energy Corporation | NYSE American: INDO | Small-cap Indonesian onshore explorer and producer (Kruh, Citra blocks); competes for the same investor theme | Larger, producing; US listing |
Jadestone Energy | AIM | Southeast Asian producer with Indonesian assets | Mid-cap producer; different scale |
PT Medco Energi Internasional | IDX: MEDC | Leading Indonesian independent E&P | Large-cap; competitor for acreage and services |
Pertamina (upstream subsidiaries) | State-owned | Dominant national operator; Bula field heritage | Incumbent |
Whitebark Energy | ASX: WBE | ASX micro-cap energy peer (Market Index "similar companies") | Comparable capital-markets peer |
Helios Energy | ASX: HE8 | ASX micro-cap energy explorer | Comparable capital-markets peer |
Galilee Energy | ASX: GLL | ASX small-cap gas explorer | Comparable capital-markets peer |
Triangle Energy (Global) | ASX: TEG | ASX small-cap oil explorer and producer (Perth Basin) | Competes for Perth-based E&P capital |
Pancontinental Energy | ASX: PCL | ASX frontier explorer | Similar binary exploration profile |
Competitor Detail
| Metric | Lion Energy (LIO) |
|---|---|
Latest annual revenue | A$0.14M (FY2025) |
Revenue growth | +47% YoY (from a tiny base) |
Operating margin | -1,431% |
R&D intensity | Not applicable (none reported) |
Production | Nil (net) |
Market capitalisation | A$8.1M (Oct 2026) |
Recent Developments
One data provider's page carried a "halted/suspended" status flag, which could not be corroborated; StockAnalysis showed normal trading on 9 October 2026. The next scheduled quarterly report is forecast for about 29 October 2026 (Market Index calendar).
