Lion reports lower Q4 output from Seram Project
Saturday, January 31 2015 - 04:26 AM WIB
ASX-listed Lion Energy said that gross crude oil production from the Seram (Non Bula) PSC (Seram Project) in the fourth quarter of last year declined to 268,383 barrels from 276,903 barrels in the third quarter.
The company said in a statement Saturday that average production during the quarter was also lower at 2,939 bopd (73 bopd net to Lion?s 2.5% interest), compared to 3,010 in the third quarter.
Lion said a lifting of 305,521 barrels of crude oil was completed on 30 December 2014. Based on positive 2014 development results, the operator has proposed a Phase 3 development of the Oseil field, to significantly grow production and this is currently going through the required approval process.
Lion said in the Seram Project, the Lofin-2 well spudded on October 31, 2014, and is being drilled to appraise the 2012 Lofin-1 discovery which flowed gas and some oil/condensate from the Manusela Formation.
The well, operated by CITIC Seram Energy Ltd, has a planned total depth of 5,425 meters. Lofin-2 is progressing relatively smoothly although the primary objective is now forecast to be penetrated in late-February/early-March 2015.
The company, through its wholly owned subsidiary Lion International Investment Limited (LII), holds a 2.5 percent shareholding in the Seram (Non Bula) PSC joint venture (Seram Project). The PSC is located onshore on the island of Seram, in Eastern Indonesia and has an area of 1,524 km2.
Elsewhere, Lion said planning for the Amanah Timur-1 well on the Paya Bili prospect in South Block A PSC advanced during the quarter. The well is designed to test stacked objectives including low-risk targets that produced oil prior to 1930, as well as higherimpact deeper unpenetrated targets. Interpretation of recently acquired seismic has also matured several high materiality gas/condensate prospects.
Commenting on the quarter Lion?s CEO, Kim Morrison noted ?Lion is well placed to prudently take advantage of opportunities we see emerging in the current oil price environment. We continue to maintain a strict control over expenditure, while at the same time progressing opportunities within our existing portfolio and new business activities. We are very pleased to deliver tangible progress with our Bohorok unconventional project, along with exploration and appraisal activities in South Block A and Seram PSC?s.?
Editing by Reiner Simanjuntak