Contractors propose Phase 3 PoD for Seram (Non Bula) PSC

By Romel S. Gurky

ASX-listed Lion Energy Limited announced on Thursday that the Seram joint venture has a proposed plan of further development (or Phase 3 Plan of Development) for the Oseil field in the Seram (Non Bula) PSC, with the area of interest being around the Oseil-2 field,

Investment in the Oseil Field Phase 1 Development was commenced in January 2000 and Phase 2 in March 2004.

The area of Phase 1 and Phase 3 Development covered Oseil-1/4 and Oseil-2 fields and provided for the drilling of 18 wells, which have been drilled.

The Phase 3 Plan of Development (PoD) is proposed to include the drilling of up to 10 additional horizontal wells, three of which have already been drilled under a negotiated arrangement with upstream authority SKK Migas prior to approval of Phase 3.

The Phase 3 PoD is currently under consideration by SKK Migas, and subject to approval, will commence immediately a suitable rig is mobilized to site. The rig tender process is at an advanced stage in anticipation of the approval of Phase 3 by the SKK Migas

Production during Phase 3, plus production from existing wells, is expected to increase to approximately 5,000 bopd based on forecasts prepared by the operator. Economic evaluation was carried out on a 5.5mmbbl incremental reserves case as a result of Phase 3.

The Oseil-27 development well is the fourth well in the POFD and was spudded on Feb. 27, 2015.

The company, through its wholly owned subsidiary Lion International Investment Limited (LII), holds a 2.5 percent shareholding in the Seram (Non Bula) PSC joint venture. The major equity holder and operator of the joint venture is CITIC Seram Energy Ltd (51 percent). Other partners are KUFPEC (Indonesia) Ltd (30 percent) and Gulf Petroleum Investment (16.5 percent). The PSC is located onshore on the island of Seram, in Eastern Indonesia and has an area of 1,524 km2.

Editing by Johannes Simbolon