Lion reports higher Q3 output from Seram project
Wednesday, October 29 2014 - 04:53 AM WIB
ASX-listed Lion Energy said on Wednesday that gross crude oil production from the Seram (Non Bula) PSC (Seram project) in the third quarter of this year increased to 276,903 barrels from 229,903 barrels in the same period of last year.
The company said in a statement that average production during the quarter was higher at 3,010 bopd (75 bopd net to Lion working interest), compared to 2,499 bopd in the same quarter last year. Average output during the previous quarter was 2,818 bopd.
Lion?s net share of oil sales revenue (before FTP) was US$781,316 from the September oil lifting of 340,221bbl, at a price of US$91.86/bbl, the company said.
Lion said that the operator also proposed a Phase 3 development of the Oseil field, which would significantly grow production and this is currently going through required approval process.
Lion, via its wholly owned subsidiary, Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non‐Bula) Block Renewal Production Sharing Contract, located onshore at Seram Island in eastern Indonesia.
Preparations for spud of Lofin-2 were back on track at the end of the quarter after a delay related with arrival of key equipment. Lion said. The spud of this exciting appraisal well is now scheduled for late October 2014, it added.
Interpretation of the recently acquired seismic survey in the South Block A PSC (Lion 35%) has resulted in the selection of shallow low risk oil and gas well to test the Paya Bili prospect. The joint venture has decided to drill a well to test the Paya Bili Prospect. The well to be known as Amanah Timur-1 will test and an attractive, shallow (less than 700m total depth), oil and gas prospect with near-term commercialization potential.
?The well is planned for drilling in 1Q 2015. A large, operationally more challenging, gas/condensate target will be selected for a planned late-2015 drilling campaign,? Lion said.
Lion has a 35 percent interest in The South Block A PSC through its wholly owned subsidiary KRX Energy (SBA) Pte Ltd. The PSC is centrally located in the North Sumatra Basin and contains large gas and overlooked oil volume potential. It is underexplored with nearby oil and gas infrastructure and undersupplied gas markets.
Commenting on the quarter Kim Morrison Lion?s CEO noted: ?Lion continues to make good progress with both the efficient administration of the company, in our held acreage and with new business activities. We look forward to drilling of the significant Lofin-2 well and are pleased by results of the South Block A seismic interpretation with low-risk, low-cost shallow oil and gas prospects, as well as highly material gas/condensate opportunities, emerging. ?
Editing by Reiner Simanjuntak