Lion Energy seeks partner for drilling program at Seram Block

Australian oil company Lion Energy Limited said Tuesday Kuwait Foreign Petroleum Exploration Company (KUFPEC), the operator of Seram Block onshore Maluku, had decided not to participate in the next drilling program of two wells on the Block.

?Kalrez (Lion's wholly-owned subsidiary) has elected therefore to Sole Risk the two wells and is currently in discussion with farminees to secure a free carry of its 100% interest,? Lion said in a statement.

According to statement, two prospects, the Dawang and Solan, have been identified for the next drilling program on the Block. Dawang and Solan prospects have original oil in place at around 25.4 million barrels and 13.3 million barrels, respectively.

?The two wells are scheduled to be drilled in the first quarter of 2005, subject to Indonesian government approval of the 2005 Work Programme and Budget,? Lion said.

Lion holds a 2.5 percent shareholding in the Seram Block, while operator KUFPEC holds the remaining 97.5 percent.

Seram Block contains the Oseil oilfield, currently producing and processing crude oil. The development of the oilfield is ongoing, with up to 16 development wells approved by the joint venture for the field and satellite structures in the 2005 Work Program & Budget, yet to be submitted to upstream authority BPMIGAS for formal approval.

?The first 3 of these wells have been approved by BP MIGAS as part of the 2004 Programme and the first well, Oseil 3, is due to start drilling later this month,? Lion added. (robert)