Lion Energy Limited announced that as of this report Amanah Timur well is at a depth 347 meter and circulating to raise mud weight prior to running open hole wire line logs. The "700" sandstone objective encountered from 336m to current depth had strong gas shows and some oil fluorescence. Drilling was halted due to the need to weight-up the mud due to the increased gas levels. Since the last announcement by Lion on 11 January 2017, the well has drilled from 323 meter to the current depth of 347 meter KB. A shale dominated section was encountered from 323 meter KB to 336 meter KB with some thin interbedded sandstone intervals showed high gas and some oil shows. The mud weight was raised from 1.16 SG to 1.32 SG and subsequently 1.56 SG to control sloughing pressured shales and high gas while drilling the section. The "700" sandstone objective is provisionally interpreted at 336m approximately 58m high to prognosis. Gas increased rapidly from a background of 150-200 units on entering the objective with a peak of 1,271 units/25.4% at 338m KB with a composition breakdown of C1: 216,825ppm, C2: 10,833ppm, C3: 2215ppm, iC4: 950ppm, nC4: 771ppm, iC5: 659ppm, nC5: 160ppm. Gas increased through the unit with peak of 1606 units/32% (C1-C5) from 344m and this resulted in the mud being gas-cut. Some oil shows described with up to 10% spotty pale yellowish gold direct fluorescence, very slow streaming pale yellowish gold cut, yellowish brown crush cut flour, trace residual cut, nil to weak oil odour. The estimated well cost of USD 1.3 million is being reviewed in light of the decision to run the provisional intermediate casing.