Lion Energy, partners spud Seram exploration well

By Nur Azizah

Australia-listed oil, gas firm Lion Energy Limited announced on Wednesday that it has spudded LOFIN-1 exploration well on Seram (Non Bula) Block, Seram Island in Eastern Indonesia.

The well, which was spudded on January 17th 2012, is expected to take approximately 120 days to drill and test, the company said in a statement.

The LOFIN-1 prospect is a thrust fold four-way dip closure anticline, located approximately 56 km to the west of the Oseil producing oil field, which has produced in excess of 10 million barrels of oil since production commenced in late 2002. A gas kick from a shallow water well and oil seepage provide evidence that there is a mature source rock underneath the Lofin area.

The primary objective in the LOFIN-1 well is the likely fractured Jurassic carbonate of the Manusela Formation, essentially the same producing reservoir rocks in the Oseil oil field.

Stock tank oil originally in place (STOOIP) has been estimated assuming closure down to the 12,467 feet sub-sea closing contour. This corresponds to 1,800 feet of vertical closure, and STOOIP of 412 MMBO of which 82 MMBO is estimated as recoverable using a 20% recovery factor.

LION, through its wholly owned subsidiary Lion International Investment Limited, holds a 2.5% shareholding in the Seram (Non Bula) Block Renewal Production Sharing Contract.

The major shareholder and Operator of the Joint Venture is CITIC Seram Energy Limited (51%). Other partners include KUFPEC (Indonesia) Limited (30%) and Gulf Petroleum Investment (16.5%).

Editing by Denny H. Tarigan