Lion reports more success at Seram project

By Ruli Setiawan

ASX-listed Lion Energy Ltd announced Tuesday that development drilling program at Oseil-21 well in the Seram PSC, eastern Indonesia, has been completed as producing oil well, and is flowing at approximately 525 barrels of oil per day.

The positive result follows a recent upgrade of proven reserves and the successful Oseil-26 development well that continues to produce strongly, at a rate of approximately 600 bopd 23/64 inch choke, with less than 1 percent water cut, the company said in a statement.

?Oseil-21 continues the positive news from the Seram PSC. Combined with the Oseil-26 well it has significantly increased production from the Oseil field complex. We now look forward to the appraisal of the exciting Lofin gas/oil discovery,? said Lion CEO Kim Morrison in the statement.

The statement said that the rig will be moved to the Lofin-2 appraisal well, which is anticipated to spud in late July or early August of this year.

Oseil and surrounding fields production is currently approximately 3,000 bpd (75 bopd net to Lion).

Lion Energy Limited, via its wholly owned subsidiary, Lion International Investment Ltd, holds a 2.5 percent participating interest in the Seram (Non-Bula) 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%).

The block contains the Oseil oilfield and surrounding structures that have produced cumulative crude oil production of 12,394,564 bbl since the initial field start-up in January 2003 through to 11 May 2014.

The Oseil-21 development well was spudded on 24 February 2014. The well was drilled within schedule and on budget.

?Taking into account the results of Oseil-26 and now Oseil-21, it is likely that a further positive revision in reserves will be the outcome in the report to 31 December 2014,? the company said.

Editing by Reiner Simanjuntak