Lion Energy reports Indonesian oil production
Thursday, July 29 2010 - 11:20 AM WIB
SERAM (NON-BULA) PSC
(2.5% contractor interest held through wholly owned subsidiary Lion International Investment Limited).
LION ENERGY LIMITED, 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%).
The block contains the Oseil oilfield which has since initial field start-up in January 2003, produced cumulative crude oil production of 9,005,187 barrels as at 30 June 2010 and 4.544 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
During the Quarter crude oil production from the Seram (Non-Bula) Block PSC was 188,204 barrels at a daily average of 2,068 BOPD.
OSEIL-18
OSEIL-1 8 is an infill-development well, deviated in the SE flank of the Oseil-114 structure. The well is intended to produce un-drained oil reserves not drained by the nearest existing well Oseil-9, within the SE sector of the Oseil-114 structure.
The primary objective is the producing Manusela Formation carbonate.
OSEIL-18 well is proposed to be drilled directionally from the Oseil-4 well pad to a total depth (TD) of 7,415 feet MD. The well is expected to produce cumulative oil of 700 MBO.
Mobilization of the drilling rig to location commenced on 13 Jun 2010, with the well spudding on 4 July 2010.
The well is prognosed to take 60 days, including an allowance for 14 days of testing of the well.
ULTRA SHORT RADIUS DRILLING (USRD) PROGRAMS
USRD was utilized on two wells, NIEF UTARA A-3 and EAST NIEF-1 in an attempt to recover hydrocarbons from shows seen during drilling operations.
NIEF UTARA A-3
Exploration well NIEF UTARA A-3 was drilled in 2008 and subsequently shut-in due to high water cut.
Based on geological information which indicated additional hydrocarbon potential at a particular interval, the well was sidetracked using USRD in March 2010 to access objective intervals. The results of the sidetrack indicated signs of oil accumulation. Based on these indications an acid fracturing, utilizing PertClean technology was carried out and completed 22 May 2010. ?Subsequent testing of the well has continued and latest results up to 30 June 2010 were a fluid rate of 847 BED, with an oil cut of only 8.5%. Due to limitations in trucking capacity, the maximum testing fluid rate is 850 BFD.
The Operator is preparing a submission to partners and the Indonesian regulatory body (BPMIGAS) to justify putting the well on production with the estimated initial oil production at 120 BOPD. Additional investment of US$400,000 is required to increase trucking capacity up to 1,500 BFD.
EAST NIEF-1
EAST NIEF -1 was a vertical exploration well drilled in 1988. The well was reentered in October 2008 to open additional intervals and despite acid washing of the new intervals, the production rate diminished to zero rapidly and was shut-in.
The primary objective of the USRD at EAST NIEF-1 was to improve well productivity on some previously tested intervals by having longer wellbore contact with the reservoir, therein increasing the drainage area within the Manusela Formation carbonate reservoir.
After completion of the USRD, an acid wash with the PerfClean tool was performed and an Electric Submersible Pump (ESP) was run in the well and tested, prior to the release of the rig.
The well was then placed on test.
Test results proved disappointing, and an acid fracturing is planned in the coming quarter to improve near wellbore permeability. (end of excerpt)