Lion: Encouraging oil, gas shows in Amanah Timur-1 well
Tuesday, January 10 2017 - 01:18 AM WIB
ASX-listed Lion Energy Limited announced Tuesday that encouraging gas readings, combined with some oil fluorescence shows have been encountered in the objective ?400? sandstone from 80m KB to the midnight depth of 154m KB.
?On reaching planned total depth of 570m KB, the section will be evaluated with wireline logs and likely production testing to confirm fluid content and reservoir quality,? the company said in a statement.
It said the ?400? sandstone is the first of four main objectives in Amanah Timur-1 in South Block A PSC in Aceh Province. Lion has a 40.7 percent interest in the block.
Lion explained that since the last announcement by the company on January 5, 2017, 9 5/8? casing has been set at approximately 78.5m and the well drilled ahead in 8 1/2? hole. The primary objective ?400? sandstone was encountered at 80m KB, approximately 29m high to prognosis.
Elevated gas was encountered in drilling sandstone dominated section from 80 to 95m KB. An interbedded shale and sandstone section is interpreted from 95-115m KB and from 115m KB to the midnight TD of 154m a predominantly 100 percent sandstone section has been encountered. High gas readings, with peaks up to 5.4 percent have been recorded (Gas composition of the peak is C1: 19,495 ppm, C2: 1669 ppm, C3: 1427 ppm, iC4:1036 ppm, nC4: 813 ppm, iC5: 1269 ppm, nC5 240ppm) as well as some oil show in the sandstone (described as less than 5% spotty pale yellow gold to bright yellow fluorescence with some cut and nil to weak oil odour).
The well has an estimated cost of US$1.3 million (US$0.53mil net to Lion). This well cost includes provision for up to three production tests. Multiple sandstone reservoirs are being targeted including the shallow objective which had oil production in pre 1930 wells that are in close proximity, Lion said.
Lion?s CEO, Kim Morrison said: ?the elevated gas readings with some oil shows over a 60m section in the shallow objective are very encouraging. We would note wireline log evaluation and production testing will be required to determine fluid content and potential commerciality of the interval. We will continue to keep the market informed of result on this exciting well as we drill the deeper objectives which we hope will continue to exceed our pre-drill expectations.?
Editing by Reiner Simanjuntak