Lion Energy: Seram production ahead of expectations
Tuesday, June 3 2014 - 01:27 AM WIB
The operator of the Seram (Non-Bula) PSC, located on shore Seram Island in eastern part of Indonesia, has completed a crude oil lifting of 357,786 barrels, ASX-listed Lion Energy, which has a 2.5 percent interest in the block, said in an update statement Tuesday.
This will generate revenue to Lion of approximately A$850,000 (net of all Indonesian government taxes and entitlements) based on net output of 8,944 barrels to the company from the lifting and sales price assumption of US$94.09 per barrel, the statement said.
It added that with three liftings expected for this year, this places the company in a good position to exceed its revenue forecast of A$2.2 million.
?We continue to be pleased by the solid production performance from the Seram Project which is exceeding our production forecasts. We now look forward to the drilling of the Lonfin-2 appraisal well, which has material upside potential for Lion,? said Lion CEO Kim Morrisson.
The Oseil fields are currently producing over 3,100 bopd (78 bopd net working interest to Lion), versus a full year estimate of 2,500 bopd. This is supported by the recently completed OS-26 and OS-21 development wells, which are producing 600 bopd and 560 bopd, respectively.
The block contains the Oseil oilfield and surrounding structuresthat have produced cumulative crude oil production of 12,439,718 bbl since the initial field startup in January 2003 through to May 26, 2014.
Lion Energy Limited, via its wholly owned subsidiary, Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) PSC. The major equity holder and operator of the joint venture is CITIC Seram Energy Ltd (51%). Other partners are KUFPEC (Indonesia) Ltd (30%) and Gulf Petroleum Investment (16.5%).
Editing by Reiner Simanjuntak