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re: take care people...tks t4p, agree Mercorella firm back to trading

08mar06
resources

A COMPANY left in disarray last year by controversial Adelaide businessman Guiseppe Mercorella has resumed trading on the Australian Stock Exchange after a seven-month break.

Lion Energy was suspended from trade in August at the request of the company. Its financial statements for 2004-05 showed it had just $450,242 in the bank at the end of the financial year.

But the firm said yesterday it had made $300,000 before tax for the six months to December 31 and cash reserves to launch new projects.

Mr Mercorella resigned as managing director in July after the Australian Securities and Investments Commission announced it was investigating him for running an unlicensed investment scheme which lost about $60 million in investors' money, much of it associated with outlaw motorcycle gangs.

Lion Energy has since restructured its board and moved to Perth. New managing director Russell Brimage said the new management was working hard to breathe life into the company.

Lion Energy said yesterday it would spend $1.76 million this year developing the Seram Block in eastern Indonesia, in which it had a 2.5 per cent interest.

The block contains the Oseil oil field, expected to produce 1.6 million barrels of oil this year.

Under the previous management Lion's claim to Seram was in jeopardy. However, Mr Brimage said it was now in good standing following a $1.77 million payment in January.

Lion also had enough cash to move into new projects, was actively looking for opportunities and was drilling on two projects in the Seram block in collaboration with Indonesian partner KUFPEC.