Lion Energy Secures A$3.2M for Brisbane Hydrogen Hub, Plans 2026 Kobi Well
Lion Energy Limited reports significant progress in its green hydrogen project at Port of Brisbane and confirms major oil and gas prospects in Indonesia, setting the stage for future drilling and commercial development.
- Joint development agreement signed with Mitsubishi’s DGA and Samsung C&T for Port of Brisbane hydrogen hub
- New seismic data interpretation confirms giant-sized Kobi and Waru prospects in East Seram PSC
- Planned drilling of Kobi-1 well targeted for early 2026
- Gross crude oil production from Seram Non-Bula PSC averaged 848 bopd in Q4 2024
- First hydrogen offtake contract nearing finalisation, major marketing campaign underway
Green Hydrogen Project Gains Momentum
Lion Energy Limited has taken a decisive step forward in its green hydrogen ambitions through a joint development agreement (JDA) with DGA Energy Solutions Australia Pty Ltd, a Mitsubishi Corporation subsidiary, and Samsung C&T Corporation. This partnership, formalised in August 2024, has already delivered a payment of A$3.2 million to Lion, covering historical and pre-construction costs, and sets the stage for a planned construction phase backed by an additional A$6.3 million in debt financing.
Throughout the fourth quarter of 2024, the partners focused on establishing robust management frameworks for technical, commercial, and marketing activities. The Port of Brisbane (PoB) Green Hydrogen Project is designed to produce and dispense an initial 420kg/day of green hydrogen, with scalable capacity to meet growing demand, particularly targeting the heavy-mobility transport sector. This aligns with Australian state mandates to phase out diesel public buses by 2025, positioning the project as a key enabler of Queensland’s transition to net-zero emissions.
Marketing efforts are intensifying, with the first hydrogen offtake contract close to finalisation after a holiday pause. The upcoming Hydrogen Supply and Use Information Day at PoB will showcase the facility to over 45 companies, including industry leaders such as Toyota and Hyundai, highlighting the project's potential to serve public bus fleets, construction, mining, and industrial users.
Seismic Interpretation Unlocks Giant Oil and Gas Potential
On the oil and gas front, Lion’s seismic interpretation work in the East Seram Production Sharing Contract (PSC) has yielded promising results. The newly processed depth-migrated seismic data has enhanced imaging of the Kobi and Waru prospects, confirming their giant-sized potential. The Kobi Prospect alone boasts an unrisked prospective resource estimate of 357 million barrels of oil equivalent (mmboe) at P50, with upside potential exceeding one billion boe at P10.
Importantly, the updated seismic data has identified a new, well-defined drilling location for the Kobi-1 well, coincident with a gravity high and accessible infrastructure. Lion and its joint venture partners are actively engaging with potential farm-in parties, aiming to drill this high-priority well in early 2026. The proximity of Kobi to the 1.5 trillion cubic feet (TCF) Lofin Gas Field further underscores the prospect’s strategic significance.
Steady Oil Production and Financial Highlights
Meanwhile, Lion’s operations in the Seram (Non-Bula) PSC continue to deliver steady crude oil production. In Q4 2024, gross production from the Oseil and surrounding fields reached 78,031 barrels, with Lion’s share amounting to 1,951 barrels. Daily production averaged 848 barrels of oil per day (bopd), translating to 21 bopd attributable to Lion’s 2.25% interest.
A crude oil lifting completed in late December 2024 yielded a selling price of US$56.26 per barrel, with Lion’s share of proceeds amounting to approximately US$225,675 before government entitlements. Operating costs for the calendar year 2025 are projected at US$33.05 per barrel, reflecting a disciplined cost structure amid fluctuating market conditions.
Strategic Outlook and Industry Positioning
Chairman Tom Soulsby emphasised the dual focus on advancing the green hydrogen hub and unlocking the East Seram PSC’s hydrocarbon potential. The company’s integrated approach, combining renewable energy development with conventional oil and gas exploration, positions Lion Energy as a versatile player in Southeast Asia’s evolving energy landscape.
With the hydrogen project poised to become Southeast Queensland’s first commercial-scale green hydrogen production and distribution hub, and the East Seram PSC offering substantial exploration upside, Lion is navigating a complex but promising path. The planned Kobi-1 well in 2026 will be a critical milestone, potentially validating the seismic optimism and unlocking significant value for shareholders.
Bottom Line?
Lion Energy’s twin-track strategy in green hydrogen and oil exploration sets the stage for transformative growth, but execution risks remain ahead of the 2026 drilling campaign.
Questions in the middle?
- Will Lion secure a farm-in partner to share the drilling risk for the Kobi-1 well?
- How will the final hydrogen offtake agreements shape the commercial viability of the Port of Brisbane project?
- What impact will evolving government policies on hydrogen and fossil fuels have on Lion’s dual energy portfolio?