Lion: Drilling programs planned for South Block A next year
Tuesday, October 28 2014 - 04:22 AM WIB
ASX-listed Lion Energy Ltd said that a shallow low risk oil and gas exploration well drilling program in South Block A is planned for the first quarter of next year.
?Well planning activities commenced during the year including preliminary well design and the identification of suitable rigs for the planned first quarter 2015 drilling,? the company said in a statement obtained Tuesday.
?An attractive, shallow (less than 800 meters total depth), oil prospect with near-term commercialization potential is anticipated to be targeted in the initial drilling program,? the company said.
A deeper gas/condensate target will likely be selected for a planned late-2015 drilling campaign, it added.
Lion has a 35 percent interest in The South Block A PSC through its wholly owned subsidiary KRX Energy (SBA) Pte Ltd. The PSC is centrally located in the North Sumatra Basin and contains large gas and overlooked oil volume potential.
Elsewhere, Lion said that during the year a 183km 2D seismic survey was successfully shot, processed and at year end was being interpreted to validate the prospects identified in the block. The seismic program was part of the minimum work commitments pursuant to the South Block A PSC award.
Field crews commenced line clearing at the commencement of the financial year and steady progress was made throughout the year culminating in the surveying and drilling being completed by 31 March 2014 and seismic recording completed on 2 April 2014. The survey was completed on budget with a good safety record. A total of 1,074,355 man hours were recorded with one lost-time injury reported through to completion of the survey. Approximately 445,877 vehicle kilometers were driven during the program, Lion explained.
In a further development during the year, a 400mmscf-gd gas pipeline is being constructed through South Block A that will transport gas from the Aceh region to Medan. The pipeline is reported to be an open-ac-cess pipeline with approximately 200mmscfgd spare capacity. The pipeline is anticipated to be completed by 2014 calendar year end. This provides a potential commercialization option for any gas discovered by the South Block A joint venture, Lion ended.
Editing by Reiner Simanjuntak