Lion: Seram oil production further boosted
Monday, September 14 2015 - 01:47 AM WIB
ASX-listed Lion Energy Ltd said Monday that the Oseil-28 development well in the Seram (Non-Bula) PSC, eastern Indonesia, has been completed as a producer with final clean-up rates prior to rig release of approximately 640 bopd on a 20/64? choke.
The company said in a statement that total field production has been boosted by 18 percent to approximately 4,000 bopd. ?The Oseil-22 development well is the next well planned in the ongoing development drilling program,? the statement said.
The Oseil-28 well was spudded on July 18 and the rig was released September 9. Excluding mobilization and rig up time, the well was drilled, completed and tested in 53 days, 34 days less than the well program projection.
Preliminary well costs indicate the well was drilled approximately US$2.25million under the budget projection of $9.955 million.
Commenting on the outcome of the Oseil-28 well, Lion CEO Kim Morrison commented: ?This is a very good outcome for the Seram joint venture, continuing the positive results of drilling on the north flank of the Oseil-2 field area and setting a new benchmark for future development drilling cost.?
The company further explained that Oseil-28 reached TD of 2,347m MD (194gm TVD) in the ManuseIa limestone objective and was completed with an ESP. This is the fifth well of the approved 10 well Phase 3 development plan approved for the Oseil-2 area, and follows the completion of the successful fourth well in the program, the Oseil-27 well, which is now flowing at a stabilized rate of in excess of 700 bopd.
Production from the Oseil and surrounding fields lifted to approximately 4,010 bopd (Lion equity share 100 bopd) with Oseil-28 on stream. This rate has been temporarily reduced to approximately 3820 bopd due to the requirement for an ESP replacement on Oseil-12. ?This work is expected to be completed shortly,? Lion said.
?The next planned well in the development program is Oseil-22, also within the Oseil-2 field area,? it added.
A crude oil lifting of 400,119 bbl was completed on September 8 (Lion share 10,003 bbl). Lion share of gross lifting revenue, estimated at approximately $0.33 million, is expected to be received approx. 35 days post the lifting.
The Seram (Non-Bula) PSC is located on Seram Island in eastern Indonesia and is operated by CITIC Seram Energy Ltd (51%) with other co-venturers being KUFPEC (Indonesia) Ltd (30%) and Gulf Petroleum Investment Company (16.5%).
Editing by Reiner Simanjuntak