Lion Energy updates progress of Seram exploration well drilling
Saturday, March 10 2012 - 04:18 AM WIB
Australia-listed oil and gas company Lion Energy Limited said the drilling of the LOFIN-1 exploration well within Seram (Non Bula) Block, Seram Island, eastern Indonesia, has reached measured depth of 7,374 feet as of March 7.
The well?s primary target is the fractured Manusela Carbonate at depth of 10,918 feet. The Manusela Carbonate formation is essentially the same with producing reservoir rocks in the Oseil oil field.
The LOFIN-1 exploration well was spudded on 17 January 2012 and is expected to take approximately 120 days to drill and test. The LOFIN prospect is identified by 2D seismic lines.
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.
LION, through its wholly owned subsidiary Lion International Investment Limited, holds a 2.5 percent 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 percent). Other partners include KUFPEC (Indonesia) Limited (30 percent) and Gulf Petroleum Investment (16.5 percent).
Editing by Roffie Kurniawan