Lion Energy reports Indonesian oil production
Monday, November 1 2010 - 02:02 AM WIB
1. 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 Investments 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 9,190,446 barrels as at 30 September 2010 and 4.663 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
Production for the Quarter to 30 September 2010 is tabled below.
| Month | Crude Oil (BOPM) | Crude Oil (BOPD) |
| Jul 10 | 62,341 | 2,011 |
| Aug 10 | 62,465 | 2,015 |
| Sep 10 | 60,453 | 2,015 |
OPERATIONS
- OSEIL-18
OSEIL-18 infill-development well was spudded on July 4th 2010 and drilled to a total depth (TD) of 7,232 feet MD.
Testing of the well resulted in initial high gas rates of 4 MMCFD. Subsequent efforts were made to install tailpipe to limit gas production, with the last rate approximately 600 BOPD, with I MMCFD of natural gas.
At the end of the quarter the well was shut in and awaiting installation of an electric submersible pump (ESP).
OSEIL-18 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-1/4 structure.
- OSEIL-12
OSEIL-12 is an infill-development well, deviated to the SE flank of the Oseil 1/4 structure. The well is intended to produce un-drained oil reserves within the NW flank of the Oseil 1/4 structure.
The well was spudded on September 22nd 2010 and had reached a depth of 7,555 feet MD at October 26th 2010. Prognosed TD is 8,736 feet MD.
- 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 frac, utilizing PerfClean 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 BFD, with an oil cut of only 8.5%.
On August 17th 2010, the well was placed on production, following approval
from BPMIGAS. Production for August was 462 BO and for the full month of September 1,115 BO. (end of excerpt)