2010-01-07-2009-11-06

To acquire companies, gaining 9.7 Bcfe proved, 500 Mcfe/d on 5,000 acres in LA Haynesville shale, interests in Liberia, Ivory Coast.

Vancouver-based, Africa-focused Lion Energy Corp. (Toronto Venture: LEO) (fka Raytec Metals Corp.) plans to acquire Haynesville shale player Southern Star Energy Inc., Houston, (OTCBB: SSEY) and West Africa E&P Gold Star Resources Corp., Vancouver, (Toronto Venture: GXX) for approximately C$8 million in stock. Lion will issue approximately 40 million shares to acquire all of the Southern Star and Gold Star shares, with approximately 26 million shares to Southern Star shareholders and 14 million to Gold Star shareholders. Southern Star assets include a 40% operated interest in approximately 5,000 acres in the Haynesville shale in northwestern Louisiana. The holdings are also prospective for Cotton Valley and Bossier shale. Southern Star has drilled seven successful wells into the Cotton Valley. In March, the company reported 9.7 billion cubic feet equivalent proved (26.1 billion proved plus probable for Cotton Valley only). Production was 500,000 cubic feet equivalent per day net. Gold Star holds interests onshore West Africa targeting Liberia and the Ivory Coast. In January, the company entered into an agreement to acquire a 90% interest in International Resource Strategies Liberia Energy Inc. (IRSLE), which has rights to license NR-001 involving 1,366 square kilometers along the Liberian coast. After 12 months of committed work at a cost of C$1.7 million, Gold Star has the right to convert to a production sharing contract. It additionally holds a letter of intent to acquire 100% of the Tiampoum mining concession onshore Ivory Coast from Bengal Bight Ghana Ltd. covering approximately 1,000 square kilometers. In September, Raytec Metals acquired privately held Lion Energy in a reverse takeover. Lion holds 100% interest in Blocks 1 and 2B onshore Kenya. Recently, Lion signed an agreement with Africa Oil Corp. (Toronto Venture: AOI) to earn an interest in five petroleum blocks in Kenya and Somalia. Lion also holds 14.76% interest in Encanto Potash Corp., a junior potash exploration company, and a 20% interest in fertilizer company Sulphur Solutions Inc. Southern Star president and chief executive David Gibbs says, "The collaboration of Lion, Southern and Gold Star combines an excellent portfolio of diverse African exploratory opportunities and a solid platform for growth in North America…The combined company will be focused on the acquisition of additional strategic assets in North America so we can build a strong foundation of cash flow and stable growth opportunities. This will provide solid returns and fund and expand the combined company's high potential exploration programs in Africa."