Lion: Drilling of Oseil-22 well in progress

By Ruli Setiawan

ASX-listed Lion Energy Ltd announced Tuesday that the Oseil-22 development well in the Seram (Non-Bula) PSC, eastern Indonesia, has been recently spudded and is drilling ahead in 26 inch hole at a current depth of 100m MD.

The Oseil-22 well is a development well, targeting the Manusela limestone reservoir and intended to drain the northeast flank of the 4-way dip closure of the Oseil-2 fault block with estimated recoverable oil reserves of 590,000 bbl, Lion said in a statement.

The well will be the 24th drilled in the Oseil oilfield and the 12th in the Oseil-2 fault block. It will be the 6th well drilled in the phase 3 Plan of Further Development (POFD), formally approved by the Indonesian upstream oil and gas regulatory body, SKK Migas, on May 5, 2015.

The POFD has thus far been very successful, with 4 of 5 wells completed to date accounting for approximately 70 percent of the current daily production rate of approximately 4100 bopd. The most recent well Oseil-28 is currently producing at approximately 830 bopd.

The Oseil-22 well is projected to add around 500 bopd of production. Following this well, the rig is planned to drill the Oseil-23 location targeting an undrilled fault compartment in the west of the overall Oseil-2 structure.

Commenting on the outcome of the POFD program to date and the prospect of the remaining 5 wells to be drilled in the program, including Oseil-22, Lion CEO Kim Morrison commented: ?The Oseil oilfield production has been significantly enhanced by the POFD drilling to date and we look forward to continuing success during the remainder of the program. Oseil-22 will be the last well in 2015 calendar year, with the remaining 4 development wells scheduled for the first half 2016.?

Lion has a 2.5 percent interest in the Seram (Non Bula) PSC, which is operated by CITIC Seram Energy Ltd (51% interest). Other shareholders are KUFPEC (Indonesia) Ltd (30%) and Gulf Petroleum Investment Company (16.5%).

Editing by Reiner Simanjuntak