Lion reports lower oil production from Seram PSC
Monday, July 31 2017 - 01:30 AM WIB
ASX-listed Lion Energy Ltd said reported continuing decline in oil production at the Seram PSC located onshore Seram Island in eastern Indonesia.
Lion said in a statement on Monday that production from the Seram PSC during the second quarter ending June of this year, gross crude oil production from Oseil and surrounding oilfields was 285,585 bbl (6,738 bbl net to Lion).
Lion said in a statement on Monday that daily production averaged 3,138 bopd (Lion?s net working interest being 74 bopd, post government entitlement), down from 3,480 in the previous first quarter ending March of this year, and also down from 4,008 bopd in the second quarter of last year.
?The decline from the previous quarter, which averaged 3,480 bopd is due to forecast natural production decline as well as active management by the operator to proactively manage water cut from some key wells by reducing choke sizes,? the company said in the statement.
During the June quarter, the Oseil-11 ESP replacement was completed on April 9, 2017.
Total oil stock as at June 30, 2017 was 216,404 bbl with a lifting scheduled for early September 2017 of approximately 350,000bbl of crude oil, with revenue from the lifting expected approximately 35 days after the lifting.
Gross crude oil production for the quarter was 285,585 bbl (6,738 bbl net to Lion), with operating costs for the quarter of US$14.62/bbl. Proceeds of US$464,440 from the early May 2017 crude oil lifting were received in June 2017. A lifting of around 350,000 bbl is expected in early September.
Lion, via its wholly owned subsidiary Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) Block PSC, located onshore Seram Island in eastern Indonesia. 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%).
Elsewhere, Lion said in the South Block A PSC located in Aceh, the Joint venture advanced appraisal drilling plans building on results and lessons from the Amanah Timur-1 discovery well. The well spud is planned for September 2017.
Lion has a 40.7 percent interest in the South Block A PSC (SBA) with the other participant being Renco Elang Energy Pte Ltd (59.3% interest and operator).
Editing by Reiner Simanjuntak