Lion Energy reports Indonesian oil production
Friday, April 20 2012 - 03:56 AM WIB
SERAM (NON-BULA) PSC
Lion Energy Limited, through its wholly owned subsidiary Lion International vestment 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 late 2002, produced cumulative crude oil production of 10,504,413 barrels as at 31 March 2012 accompanied by 5.526 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 March 2012 is presented in the adjacent TABLE. Oil available for lifting at 31 March 2012 was 221,931 barrels, with the next lifting of approximately 300,000 barrels scheduled for around 10-11 May2012.
SERAM BLOCK PRODUCTION |
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| 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 |
| Jan-12 | 76,836 | 2,479 |
| Feb-12 | 76,839 | 2,650 |
| Mar-12 | 81,679 | 2,635 |
OPERATIONS
LOFIN-1 EXPLORATION WELL
The LOF IN-i exploration well on Seram Island in Eastern Indonesia was spudded on 17 January 2012.
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.
Te 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 at 412 MMBO of which 82 MMBO is estimated as recoverable using a 20% recovery factor.
The LOFIN-1 well is drilling ahead in 8-1/2 inch hole at a depth of 3,559.9 metres 11,680 feet) MD as at 24:00 WIT 16 April 2012, after setting 9-5/8 inch casing at ,492.8 metres (11,460 feet) MD.
Current operations are to continue drilling 8-1/2 inch hole to tentative Total Depth of 4,441 metres (14,570 feet) SS. The well Total Depth has been revised, with the primary objective the Manusela Carbonate not being penetrated at the original prognoses of 3,327.6 metres (10,918 feet) MD.
If the well encounters hydrocarbons, an extensive testing program will be conducted. Facilities are being readied on site for testing.
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 was 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 thrown fault block, with an estimated recoverable reserve of 761 MBO.
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 cleaned up during the previous Quarter and has now stabilized as the Table adjacent indicates, at approximately 450 BOPD.
| OSEIL-16 | PRODUCTION | ||
| MONTH | (BOPM) | (BOPD) | (BWPM) |
| Jan-12 | 7,940 | 256 | 14 |
| Feb-12 | 13,017 | 449 | 2 |
| Mar-12 | 14,764 | 476 | 3 |
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