Lion Energy reports Indonesian oil production
Friday, April 29 2011 - 07:30 AM WIB
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 9,584,501 barrels as at 31 March 2011 and 4.927 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
Production for the current financial year to 31 March 2010 is presented in the following table.
| Month | Crude Oil (BOPM) | Crude Oil (BOPD) |
| Juli 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 |
| Jan 11 | 68,855 | 2,221 |
| Feb 11 | 60,550 | 2,162 |
| Mar 11 | 64,465 | 2,080 |
OPERATIONS
OSEIL-2 SIDETRACK-2 (O2-ST2)
O2-ST2 involved the re-entry of the existing Oseil-2 well and the setting of a whipstock at 4,262 feet, to allow a window to be cut in the existing casing from
4,237 - 4,252 feet, from which an 8-112 inch directional hole was drilled to 7,130 feet. 7 inch casing was then set at 6,816 feet, after which a 6-1/8 inch hole was drilled to Total Depth of 7,436 feet. A 5 inch liner was then run across 6,816 - 7,130 feet and the well completed prior to rig release on 30 March 2011.
Initial test results on ESP indicate a stabilized flow rate of approx. 600 BOPD with minimal water production. Whilst the result is encouraging, the well performance will be monitored and tested on various choke sizes to determine optimal production rate and to establish whether the well will flow naturally.
OSEIL SELATAN-1
OSEIL SELATAN -1 exploration well programmed to a Total Depth of 7,366 feet MD spudded on 29 November 2010.
13-3/8? 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 set at 4,799 feet MD to 7,282 feet MD.
6-1/8 inch open hole was drilled to 7,480 feet Total Depth.
The well was then completed and initial testing indicated a rapidly rising water cut and, declining oil production. Following a pressure buildup, the well completion was pulled and a packer set with the intention of isolating water influx. The well was then re-completed with an ESP completion and testing commenced on 22 January 2011.
The well is currently producing at a rate of approx. 25 BOPD at a 92% water cut.
Options are being considered to further evaluate the Oseil Selatan structure by deepening the existing well and possible side track.
OSEIL-18
OSEIL-18 infill-development well was spudded on 4 July 2010 and drilled to a total depth (TD) of 7,232 feet MD.
At the end of the previous quarter the well was shut in awaiting installation of an electric submersible pump (ESP), which was completed on 30 September 2010. Performance of the well since then is summarized in the following table.
| Month | Oil (BOPM) | Water (BWPM) |
| Sep 10 | 310 | 2 |
| Oct 10 | 4,646 | 5,443 |
| Nov 10 | 1,412 | 20,824 |
| Dec 10 | 1,861 | 23,626 |
| Jan 11 | 2,011 | 31,329 |
| Feb 11 | 1,823 | 26,494 |
| Mar 11 | 1,319 | 15,546 |
The results (declining oil rate and high water cut of 90%) are disappointing. It is intended to set a cement plug in the lower section of the well in an attempt to isolate the water influx. Following this, the well will be tested. If this does not result in a higher oil rate, a side track will be considered.
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 22 September 2010.
The well reached Total Depth (6-1/8? hole) of 8456 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 11 November 2010.
Well performance to 31 March 2011 is presented in the following table
| Month | Oil (BOPM) | Water (BWPM) |
| Nov 10 | 7,800 | 6,252 |
| Dec 10 | 10,852 | 6,088 |
| Jan 11 | 8,951 | 6,176 |
| Feb 11 | 7,311 | 5,673 |
| Mar 11 | 7,866 | 5,851 |