Lion reports lower output in Seram PSC, plans appraisal well in South Block A PSC in 2018
Monday, October 30 2017 - 04:10 AM WIB
ASX-listed Lion Energy Ltd said on Monday that production from the Seram PSC located onshore Seram Island in eastern Indonesia averaged 2,533 bopd for the quarter ending September of this year (63 bopd net to Lion prior to deducting government take).
Lion said in a statement that gross crude oil production for the quarter was 233,081 bbl (5,499 bbl net to Lion). A lifting of 350,186 bbl was completed on September 9, 2017.
?The decline from the previous quarter, which averaged 3,138 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.
In addition, Oseil-12 well was down approximately 15 days and Oseil-21 down 3 days during the quarter, for pump servicing workovers. Oseil-21 well electric submersible pump failed on September 27, resulting in production loss of approximately 350 bopd. ?The well service was completed October 3 and production from the well is now back above 350 bopd,? the statement said.
Total oil stock at September 30, 2017 was 102,586 bbl, with the next lifting scheduled for late December 2017.
Lion, via its wholly owned subsidiary Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) Block PSC.
Elsewhere, Lion said in the South Block A PSC in Aceh Province, the joint venture advanced appraisal drilling plans, building on results and lessons from the Amanah Timur-1 discovery well. ?The appraisal well spud is planned for 1Q-2018 following the wet season,? the company said.
Amanah Timur-1 tested a well-defined anticline which has existing shallow oil reservoirs that produced approximately 200,000 barrels of oil in a period prior to WWII. The well encountered good oil and gas indications with at least three hydrocarbon zones interpreted (?400?, ?450/500? and ?700? sandstones).
Amanah Timur-2 is planned with the objective to fully evaluate these zones, and, also test deeper objectives, including the ?900? sandstone, that were not penetrated in the original well due to operational issues. The operator has finalized the well plan taking on board lessons from the AMT-1 well. The well is planned to spud in the first quarter of 2018 to avoid the wet season in the area with a planned total depth of ~550m. The dry hole cost is approximately US$850,000 (Lion share US$345,000) while the completed and tested well cost is estimated at $1,200,000. (Lion share $490,000).
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).
Lion?s CEO, Kim Morrison, noted ?Lion continues to make good progress on building our position in Indonesia. We are pleased with the South Block A PSC appraisal plans now set for the first quarter of 2018, as this avoids the wet season in the North Sumatra area. Improvement to the new PSC terms signed by the Indonesian Government during the quarter are welcome and are a positive step for renewed interest in the oil and gas sector.?
Editing by Reiner Simanjuntak