Lion Energy reports oil production from Seram PSC

The following is an excerpt taken from Australian firm Lion Energy Limited?s quarterly report released on Wednesday.

SERAM (NON-BULA) PSC
(2.5% contractor interest held through wholly owned subsidiary Lion Petroleum Seram Limited)

LION ENERGY LIMITED, through its wholly owned subsidiary Lion Petroleum Seram Limited, holds a 2.5% shareholding in the Seram (Non Bula) Block Production Sharing Contract. The major shareholder and Operator of the Joint Venture is CITIC Seram Energy Limited (51%). Other shareholders are

KUFPEC (Indonesia) Limited with 30% and Gulf Petroleum Investment (16.5%).

The block contains the Oseil oilfield which has produced since initial field startup in January 2003, cumulative crude oil production of 6,165,397 barrels to midnight 30th September 2007.

PRODUCTION
During the quarter crude oil production from the Seram(Non-Bula) Block PSC was 362,679 barrels of crude oil at a daily average of 3,942 BOPD over the quarter.

The following table shows production performance during the quarter.

YEAR 2007 PRODUCTION
MONTH	CRUDE OIL (BPM)	CRUDE OIL (BPD)	HSFO (BPM)	NAPTHA (BPM)
JULY	117,916	3,804	104,118	6,105
AUGUST	124,274	4,009	106,852	6,796
SEPTEMBER	120,487	4,016	110,179	6,968

WORK PROGRAM & BUDGET 2008
The Seram (Non Bula) PSC partners will meet in late October, early November to discuss the Work Program & Budget for 2008 (?WP&B 2008?). The decision of the parties will be subject to Indonesian Government approval of the program.

The WP&B 2008 is expected to include exploration drilling to test several significant sized prospects delineated by earlier work and several development wells intended to lift production levels. (end of excerpt)