Australia?s Lion says Oseil to produce 5,000 BPD in January

Financially Troubled Australian junior oil firm Lion Energy said crude production from Oseil oil field in Seram (non-Bula) PSC in Seram island has currently reached 4,000 parrels per day and would increase to 5,000 BPD late January 2006.

Lion has 2.5 percent interest in the block with operator Kuwaiti?s oil firm KUFPEC has the remaining balance.

The figure was fall short of earlier expectation to push production from Oseil field to 17,000 BPD by mid 2005. The oilfields had been suffering from damages in temporary production facility and suspension of development drillings due to problems with drilling equipments.

?The drilling rig would likely to be released and Seram JV will concentrate on production and costs minimization, with some seismic activity on the exploration front,? said Lion.

The company said it was intending to drill two sole risk exploration wells on the block next year.

Lion was in big financial trouble to the extend that it was defaulted its obligation in Seram PSC, forcing the company to sell its interest in nearby Bula PSC. The new management which took over in July said that company was now financially secure. (alex)