Lion Petroleum Corp. is an independent oil and gas exploration company with interests in 9.7 million gross oil and gas exploration acres in Block 1 and Block 2B onshore Kenya. Lion currently holds a 20% working interest in Block 1 (7.8 million acres gross) which is operated by Afren Plc, and a 100% working interest in Block 2B (1.9 million acres). Total net unrisked prospective resources on the Blocks are 528 million barrels of oil equivalent based upon the NI 51-101 report prepared by Sproule Associates Limited and Afren Plc management estimates.
In consideration for the merger, Taipan will provide Lion Petroleum Corp. with irrevocable bank guarantees to fund the required work program on Block 2B and commitments on Block 1. In addition, the current shareholders and convertible bridge loan holders of Lion Petroleum Corp. will receive 20,124,817 shares of Taipan common stock, representing 39.1% of the outstanding shares of common stock of Taipan in the post-merger corporation.