Lion: Average production at Seram PSC down, SBA PSC drilling plan advanced
Monday, July 25 2016 - 01:56 AM WIB
ASX-listed Lion Energy Limited reported Monday average daily oil production from the Seram PSC located onshore Seram Island in eastern Indonesia was 4,008 bopd (95 bopd net to Lion) for the quarter ending June, down from 4,211 bopd in the previous quarter.
The company said in a statement that gross crude oil production for the quarter was 364,737 barrels (8,606 bbl net to Lion). Operating costs for the quarter equate to US$15.92 per barrel. Proceeds of $254,776 from a crude oil lifting of 418,842 bbl completed on March 29, 2016 (Lion share 10,471 bbl) were received during the quarter. A further lifting of 475,000 bbl is scheduled for late July 2016 (Lion share 11,875 bbl), with proceeds expected to be received late August 2016.
?The PSC expires end October 2019 and the joint venture is currently in discussions on strategy for securing a renewal of the PSC over the area,? Lion said.
Lion, via its wholly owned subsidiary Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) Block PSC.
Elsewhere, Lion said that in South Block A PSC (SBA), Aceh, work has progressed on identifying low cost drilling options for the low risk Amanah Timur oil prospect planned to be drilled in the fourth quarter of 2016. Cost of the drilling to Lion is included in the company?s cash flow forecast. Lion has a 35 percent interest in the PSC.
At the end of the quarter, the company said it had cash of $1.391million with a significant crude oil lifting entitlement (estimated at between $350,000 to $400,000) expected in late-August 2016.
Lion?s CEO, Kim Morrison, noted ?We are seeing more positive sentiment in the sector and Lion is well placed to build on our position. Importantly, the Seram PSC is delivering positive cash flow with the cessation of development drilling and no exploration activity. Together with lower administration costs following further management remuneration reductions and reduction in joint venture operating costs, the company is conserving its cash reserves. On the activity front, the planned drilling of an attractive oil prospect in our South Block A PSC and good progress on our new business activities provides upside opportunity for shareholders.?
Editing by Reiner Simanjuntak