Lion Energy reports Indonesian oil production, exploration
Thursday, July 30 2009 - 04:42 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 %), KUFPEC (Indonesia) Limited with 30% and Gulf Petroleum Investment (16.5%). CITIC is the Operator for the Joint Venture.
The block contains the Oseil oilfield which has since initial field start-up in December 2002, produced cumulative crude oil production of 8,212,319 barrels as at June 30th 2009.
PRODUCTION
During the quarter crude oil production from the Seram (Non-Bula) Block PSC was 219,625 barrels of crude oil at a daily average of 2,413 BOPD over the quarter.
| YEAR 2009 | ||||
| MONTH | CRUDE OIL (BOPM) | CRUDE OIL (BOPD) | HSFO (BOPM) | NAPTHA (BOPM) |
| Jan 09 | 87,110 | 2,810 | 93,300 | 6,808 |
| Feb 09 | 76,188 | 2,721 | 64,425 | 4,335 |
| March 09 | 80,352 | 2,592 | 63,152 | 4,494 |
| April 09 | 72,765 | 2,426 | 72,547 | 4,486 |
| May 09 | 72,467 | 2,338 | 74,807 | 4,427 |
| June 09 | 74,393 | 2,480 | 54,450 | 4,064 |
OPERATIONS
Oseil-2 Workover
Drilled in 1998, Oseil-2 was one of the initial three wells put on production in January 2003 in the Oseil field development. The well was initially completed with a 153 metre (503 foot) horizontal section. In April 2006, the water cut increased from 5% to 99% in less than a week.
The purpose of the workover was to isolate the water production and perforate the well up-hole behind the liner and sufficiently above the water contact.
On May 6th, the rig-up was completed and the electric submersible pump (ESP) pump was pulled.
The open hole section of the well was then cemented prior to perforating the zone 2,037 -2,048 metres (6,685 - 6,720 feet). The ESP unit was then re-run and the well tested from 19 - 31 May 2009. Due to the high gas content of the production, the ESP was shut-in on 20 May 2009 and let the well flow naturally, the last results indicated a flowing tubing pressure of 1475 PSI on a 4/64? surface choke and a gas rate of 100-250 MSCFD.
The well has subsequently been shut-in and secured for future gas fuel supply, whilst an acid job is being prepared.
As a result of Oseil-2 workover, the adjacent well Oseil-11 has Water Cut reduction and now it is able to flow naturally (it was on ESP). (end of excerpt)