Lion reports lower production from Seram PSC, to drill Amanah Timur well next month
Friday, October 28 2016 - 07:20 AM WIB
ASX-listed Lion Energy Limited said on Friday average daily production from Seram PSC on Seram Island in eastern Indonesia during the quarter ending September stood at 3,497 bopd (83 bopd net to Lion), down from 4,008 bopd the previous quarter.
The company said in a statement production at quarter end was 3,630 bopd. Gross crude oil production for the quarter was 321,761 barrels (7,592 bbl net to Lion).
Operating costs for the quarter equate to US$11.85/bbl, with calendar year operating cost at $13.85/bbl. Proceeds of $420,415 from a crude oil lifting of 485,495 bbl completed on July 31, 2016 (Lion share 12,137 bbl) were received during the quarter.
Lion said a further lifting of approximately 500,000 bbl is scheduled for late-December 2016 which will be the third and final lifting for the year. Proceeds from this lifting are expected to be received in January 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, located onshore Seram Island in eastern Indonesia.
Elsewhere, Lion said that in South Block A PSC (Lion 35% working interest), significant progress was made towards drilling the shallow (planned total depth ~600m), low-risk Amanah Timur oil and gas prospect.
Site preparation commenced in September and as at time of this report was approximately 80 percent complete. The Amanah Timur-1 exploration well is anticipated to spud in mid-November 2016 and the cost of drilling is estimated at $1.2 million (US$0.4 mil net to Lion).
Lion?s CEO, Kim Morrison, noted ?Lion is poised to participate in an exciting exploration well in our South Block A PSC testing shallow reservoirs that were oil productive in pre-1930 wells, as well as deeper reservoirs not previously penetrated in the crestal location of the structure. The operator, with Lion?s assistance, has done an excellent job in driving down the well cost to around a third of the levels two years ago. In other news, the Seram PSC continues to deliver solid free cash flow, we are excited by our new conventional joint study in Eastern Indonesia and we continue to pursue attractive production opportunities while prudently managing costs.?
Editing by Reiner Simanjuntak