Lion Energy reports Indonesian oil production
Saturday, January 29 2011 - 03:25 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 9,390,631 barrels as at 31st December 2010 and 4.799 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
Production br the current financial year to December 31st 2010 is presented in the following TABLE.
| 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 |
| Oct 10 | 64,759 | 2,089 |
| Nov 10 | 63,169 | 2,106 |
| Dec 10 | 72,257 | 2,331 |
The increase in production for December 2010 is due mainly to the contribution from new development well Oseil-12, which came on-stream mid November 2010.
OPERATIONS
OSEIL SELATAN-1
OSEIL SELATAN-1 exploration well prognosed to be drilled to a Total Depth of 7,366 feet MD spudded on November 29th 2010 .
13-3/8 inch casing was run and cemented at 1,815 ft MD, with 9-5/8 inch casing run and cemented at 5,090 ft.
A 7 inch liner was then hung at 4,799 feet MD, extending to 7,282 feet MD. 6-1/8 inch open hole was drilled to 7,480 feet MD.
Testing of the Manusela Formation is currently underway, prior to decisions on further drilling to deepen the well.
Well cost is expected to be US$8.8 million.
OSEIL-18
OSEIL-18 infill-development well was spudded on July ~ 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 previous quarter the well was shut in awaiting installation of an electric submersible pump (ESP), which was completed on October 8th 2010 . Performance of the well since then is summarized in the following Table.
| Month | Oil (BOPM) | Water (BWPM) |
| Oct 10 | 4,646 | 5,443 |
| Nov 10 | 1,412 | 20,824 |
| Dec 10 | 1,861 | 23,626 |
OSEIL-18 is an infill-development well, deviated in the SE flank of the Oseil-1/4 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 flankof the Oseil 1/4 structure.
The well was spudded on September 22nd 2010 .
The well reached Total Depth (6-1/8? hole) of 8,456 ft MD and was completed with the installation of an ESP unit run on 2-7/8? tubing to 6,546 feet MD.
The Rig was released on November 11th 2010 . Production since then is summarized in the following TABLE.
| Month | Oil (BOPM) | Water (BWPM) |
| Nov 10 | 7,800 | 6,252 |
| Dec 10 | 10,852 | 6,068 |
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 .
On August 17th 2010 , the well was placed on production, following approval from BP MIGAS. Production for August was 462 BO and for the full month of September 653 BC.
Production for the Quarter to December 31st 2010 is summarized below.
| Month | Oil (BOPM) | Water (BWPM) |
| Oct 10 | 1,711 | 18,072 |
| Nov 10 | 1,565 | 17,506 |
| Dec 10 | 1,379 | 18,248 |