Lion Energy reports Indonesian oil production
Wednesday, January 25 2012 - 08:49 AM WIB
SERAM (NON-BULA) PSC
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 and surrounding structures which has since initial field start-up in December 2002, produced cumulative crude oil production of 10,269,057 barrels as at 31 December 2011 accompanied by 5.358 BCF of natural gas, most of which is utilized to generate electricity on site for the operations.
PRODUCTION
Production in barrels of crude oil per month (BOPM) and barrels of crude oil per day (BOPD) for the current financial year to 31 December 2011 is presented in the adjacent TABLE. Oil available for lifting at 31 December 2011 was only 7,599 barrels following the crude oil lifting of 188,818 barrels completed on 30 December 2011.
| MONTH | (BOPM) | (BOPD) |
| Jul-11 | 77,869 | 2,512 |
| Aug-11 | 78,692 | 2,538 |
| Sep-11 | 76,290 | 2,543 |
| Oct-11 | 74,090 | 2,390 |
| Nov-11 | 71,400 | 2,380 |
| Dec-11 | 72,513 | 2,339 |
OPERATIONS
LOFIN-1 EXPLORATION WELL
The LOFIN-1 exploration well on Seram Island in Eastern Indonesia was spudded at on 17 January 2012. The well, in the Seram (Non Bula) Block Renewal Production Sharing Contract, is expected to take approximately 120 days to drill and test.
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.
Deterministic 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.
OSEIL-16 INFILL DEVELOPMENT WELL
The OSEIL-16 infill development well is located 400 metres (1312 ft) west of the successful Oseil-2ST2 horizontal well drilled from the existing Oseil-2 well.
The Manusela fractured carbonate is the primary target, and is intended to recover un-drained oil reserve on the western flank of the faulted 4-way dip closure of the Oseil-2 up thrownfault block, with an estimated recoverable reserve of 515 MBO. The well will be drilled deviated to TD at -5596? SSTVD in the Manusela carbonate.
The well spudded on 14 August 2011 and after encountering significant lost circulation problems, the well was finally completed and the rig released on 13 December 2011, with the last flow test result of 274 BFPD at 14.2% water cut.
Subsequently the Electric Submersible Pump failed on 17 December 2011 and a workover rig was scheduled. The workover was completed and the rig released on 10 January 2012. The well is now on test and after cleanup production of between 300-400 BOPD is anticipated.
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 8-1/2 inch directional hole was drilled to 7,130 feet. 7 inch casing was then set at 6,816 feet, after which a 6,816 inch hole was drilled to Total Depth of 7,436 feet. A 5 inch liner was then run across 6,816-7,113 feet and the well completed prior to rig release on 30 March 2011.
The well continues to deliver sustained production since startup in March 2011 as evidenced by production data presented in the TABLE below.
| O2-ST2 | CRUDE OIL | WATER | |
| MONTH | (BOPM) | (BOPD) | (BWPM) |
| Apr-11 | 15,578 | 519 | 220 |
| May-11 | 15,284 | 493 | 383 |
| Jun-11 | 15,000 | 500 | 255 |
| Jul-11 | 18,847 | 511 | 106 |
| Aug-11 | 15,600 | 503 | 101 |
| Sep-11 | 14,955 | 499 | 167 |
| Oct-11 | 13,302 | 429 | 50 |
| Nov-11 | 14,285 | 476 | 124 |
| Dec-11 | 14,315 | 462 | 84 |
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